When it comes to ultra low-cost PCs, most electronics consumers think of one operating system that is most likely pre-loaded on budget laptops: Linux. But that may not be the case any more soon, now that Microsoft is trying to find ways to level the competition between its Windows OS and its open source Linux counterpart.

Microsoft is offering Windows XP to ultra low-cost PC manufacturers at a high discount, but there are some conditions to be met before they will be eligible for the offer: the proposed low-cost PCs should be limited to 10.2-inch screens, should be non-touch screen, and can only have up to 80GB of hard drive storage.

One of the first ultra low-cost PCs to be offered with budget windows is the Asus Eee PC, which shares the same price tag as the Linux-flavored Eee.

So will this benefit electronics consumers? Of course. An unnamed executive of a PC manufacturing firm stated that this set-up will prove beneficial, since it fosters healthy competition between Windows and Linux. The sales for ultra low-cost PCs will be jacked up as well, since those who prefer user-friendly PCs may opt to get Windows-powered machines.