Google CEO: Chrome OS a 'Game-Changer'

But Page couldn't resist taking some veiled shots at Windows. Without mentioning Windows, he suggested Microsoft's operating system is becoming archaic as people spend more and more of their computer time in a Web browser.

"The way we think about it is if you are living your life online, maybe you don't want everything (on computers) that came from Eric's generation," Page, 36, said as he smiled at the 54-year-old Schmidt.

Page said he will consider the operating system a resounding success if people don't realize what's controlling their computers.

"You want the computer to get out of the way and just let you get your work done," he said.

Most industry observers believe it will take years before the Chrome operating system develops into a serious challenger to Microsoft's Windows, which runs on more than 1 billion PCs, according to Collins Stewart analyst Sandeep Aggarwal.

But the Chrome OS also could put Google into direct competition with Apple (AAPL Quote), a computer maker whose board includes Schmidt and another Google director, Arthur Levinson. The Federal Trade Commission already is taking a look at whether Schmidt's and Levinson's overlapping with Google and Apple threaten to diminish competition.

But Schmidt doesn't see a conflict. He said he doesn't intend to recuse himself from Apple board discussions about computer operating systems like he does when the directors talk about Apple's iPhone. Google also makes a mobile operating system called Android.

Some computer makers already are considering using Android as an operating system in netbooks, but both Page and Schmidt said they think Android is better suited for handheld devices. They also think elements of the Android and Chrome systems could eventually merge.