Microsoft proposes pay-as-you-go PC

Microsoft has applied for a US patent for a 'pay-as-you-go' system where consumers get heavy discounts on computers, but pay fees to use them.

The IT giant proposes a scheme whereby a "standard model" of personal computer PC is heavily subsidised, allowing customers to buy it at a much lower price, then pay for software bundles or an hourly rate.

Bundles may include Microsoft Office for $1 (69p) an hour, gaming for $1.25 an hour or browsing for $0.80 an hour, the firm suggests.

"A computer with scalable performance level components and selectable software and service options has a user interface that allows individual performance levels to be selected," says the patent application's abstract.

Microsoft recently hit the headlines when it revealed that a loophole in Internet Explorer 7 made the browser vulnerable to hackers.

The firm said around two million Windows users were affected by the bug and released a downloadable patch to repair the fault.