There's a crazy rumor floating around the Wall Street Journal offices that Google is working on their own Android gaming console & Android smartwatch to eventually take on Apple, Sony, Microsoft, Nintendo and OUYA. The Android smartwatch idea isn't really much of a stretch to believe considering Google has been heavily plugging their wearable Google Glasses for some time now. Also, it wouldn't be surprising to see Google try to counter the rumored iWatch from Apple. However, the idea that Google would jump into the gaming console market at a time when we may be at the apex of the game console era seems a bit iffy.

Still, if you wander down this rabbit hole a bit further it starts to become plausible. If Google made a "game console" based upon Android, it would likely be a great deal more than just a game console. More than likely it would offer similar audio/video capabilities and unique gesture and voice control functions like the up-coming Xbox One. Of course, it would even include full Google TV support. Once you start to envision that product, you start to realize that Google's primary targets in this market wouldn't be Sony, Nintendo and OUYA (although those companies could be secondary casualties). Google would be trying to beat Apple to the living room and compete directly with Microsoft on another front. Here's a quote with some of the rumor's details,

Google Inc. is developing a videogame console and wristwatch powered by its Android operating system, according to people familiar with the matter, as the Internet company seeks to spread the software beyond smartphones and tablets.

With the game machine and digital watch, Google is hoping to combat similar devices that Apple Inc. may release in the future, according to the people.
This device would be similar to their failed Nexus Q home entertainment hub, yet would also integrate Google TV and Android gaming functions to become a truly all-in-one entertainment hub. This could also be a push to simply create more internet connected Android devices, with the purpose of filling out the Android ecosystem further. Here's another quote with further speculation from the source of this rumor,

Meanwhile, Google has been developing low-cost Android smartphones of its own with an eye toward offering them in developing markets, other people familiar with the matter have said, including in markets where Google plans to fund or help create next-generation wireless networks.

With the next release of Android this fall, Google is also moving more aggressively to use the software in additional kinds of devices, including laptops and appliances such as refrigerators.
If true, is this simply a case of Google over-reaching, or could we be seeing the beginning of a new "living room based" technology market arena battle?

Source: WSJ