EMachines to Make Devices for Microsoft

Low-price computer maker EMachines Inc. in Irvine will produce easy-to-use Internet devices for Microsoft Corp., the two companies said Monday.

EMachines will make MSN Companion devices for the software giant’s Microsoft Network. MSN Companions, which also are being made by such manufacturers as Compaq and Acer, provide access to e-mail and the World Wide Web through a dial-up service.

They are not full-fledged computers and can’t be used to play games or write business documents.

EMachines plans to sell the device for $349, but MSN will offer a $400 rebate if consumers sign up for a three-year Internet service contract at $21.95 per month. Monitors, however, will be sold separately, unlike MSN Companion devices made by other manufacturers.

Shares of EMachines rose 16 cents to $1.16 a share Monday in Nasdaq trading. Microsoft stock fell 75 cents to $54.81 a share.