A couple years ago the big news was Google scooping up OS developers from all over the world, including a few of Microsoft’s employees. That set us all to waiting for the search giant’s first foray into operating systems, but the most we’ve seen since is the release of Google Chrome, the company’s first web browser (which sits around 1% market share), and Android, Google’s mobile OS.

At long last, though, Google is set to take on Redmond with their first operating system designed for full PC application, the Google Chrome Operating System. Sundar Pichai, Google’s VP of product management says Chrome OS is “our attempt to rethink what operating systems should be.”

Initially designed for the netbook market, Chrome OS has a huge task before it. Windows currently runs almost 90% of the PC market. That’s not exactly small potatoes. Google is in a good position, though, as netbooks continue to gain popularity and manufacturers look for lighter-weight, faster operating systems to run the trimmed-down computers. Acer, for example, has already agreed to develop several netbooks to run on Android for 2010.

Set for release in the second half of 2010, there’s still no word on what Chrome OS will cost. Market analysts at Enderle group expect simply a nominal fee, which is one thing that could easily woo manufacturers. Microsoft does not release its manufacturer prices, but most analysts speculate they charge something like $20 for XP and as much as $150 for Vista. Undercutting that price could result in not only a deal for manufacturers but a price cut for consumers as well.

Google hasn’t said much regarding Chrome OS as a system for running high end PCs, like the gaming PCs a lot of us geeks are concerned with. The OS is based on Linux, though, so I’d imagine they can beef it up for just that sort of capability. For now, the OS is meant for folks looking for a quick OS for web browsing and other simple applications.

Microsoft has yet to comment.

Source: Reuters