MIT spinoff that plans to give computers to poor children says price now $175

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The result is that XO's software is highly original, in hopes of making the computer useful as a collaborative tool and intuitive for children who have never before encountered a computer. There are no windows or folders, but rather an interface heavily reliant on pictographic icons.

However, Negroponte disclosed that XO's developers have been working with Microsoft Corp. so a version of Windows can run on the machines as well. It could be the $3 (euro2.20) software package that Microsoft announced last week for governments that subsidize student computers. It includes Windows XP Starter Edition and some of Microsoft's ''productivity'' software.

Word of Microsoft's involvement was somewhat striking given that the software company and its closest corporate partner, Intel Corp., have questioned whether the One Laptop Per Child's computers will do much to stimulate educational gains. Bill Gates once denigrated the machine as not being a ''decent computer.'' And Intel is pushing its own inexpensive computer for developing countries, the $400 (euro294) Classmate PC.

The ever-optimistic Negroponte turned those criticisms around on Thursday, arguing that Microsoft would not have bothered with its $3 (euro2.20) international software package and Intel would not be pushing Classmate unless they had something to fear from One Laptop Per Child's innovations.

A Microsoft spokesperson could not be reached for comment. An Intel spokesman said the company has been selling in emerging markets for over 20 years and that both Intel's and One Laptop Per Child's projects on the new class of devices began around the same time in 2005.

Whether the XO machines might someday land in U.S. schools has been an open question. Former Massachusetts Gov. Mitt Romney announced at one point that he wanted to buy the machines for students in his state. Some time later, Negroponte said Thursday, One Laptop Per Child decided not to work with American schools because ''we've designed something for a totally different situation'' _ meaning kids in poor countries.

Now, he added, that might change, since 19 state governors have shown interest. One of them was then-Florida Gov. Jeb Bush. When Bush first e-mailed and casually signed ''Jeb,'' Negroponte needed to ask his brother, former national intelligence director John Negroponte, whether the query was legitimate.