Earlier this week we heard rumors that the Nexus One would sell for just $199.99. As nice as hearing that was, it sounded seriously dubious. A smartphone with the specs of the Nexus One should cost $500+. Google could subsidize that, but it would mean eating some extremely high losses. The plan Reuters just unveiled seems much more reasonable. Come January, Google will start selling two versions of the Nexus One. The first will come with a service contract with T-Mobile, who will subsidize the smartphone's cost. The second version will be unlocked and come directly from Google. It will (presumably) not be subsidized. Those of you worried about Google selling out to a carrier can rest easy; they're eagerly looking to make similar deals with other service providers.Neither T-Mobile or Google have yet confirmed these rumors. They do seem to be pretty realistic though. While Google will never sign an exclusivity contract, working with carriers to cut the cost-to-consumer is a perfectly valid strategy. We should know more when the next batch of rumors hit. You can tide yourself over until then with these videos of the phone in action.