It is interesting where Google sits. Other than companies like Facebook or Netflix, there is not much competition in the whole ‘know what your users are likely to do next” category. Google sits in a unique place due to their control over what is displayed and what is not. They are also one of the few with that kind of power that just happens to have access to gaming habits (through achievements and our searches). There are rumors that Google is working on one of two things involving gaming right now. No word on if either is based on their Android operating system or not (which is based on Linux by the way).

Currently in development under the name “Yeti”, details are scarce. What is known is that Google is working on something involving gaming. The scant details available point to either a streaming service or a console of their own. Great, that is not exactly a challenging thing to figure out considering how gaming is going to the cloud so much right now.
At this point, a console would probably be mostly counter productive to Google’s overall company direction. Google is deeply involved in streaming from YouTube to Google Play’s movie and television options. Of course, this is Google and that is why I think they would do a console of some sort – something like a more powerful Chromecast may be just what they are working on.
Imagine a world where Google threw their hat in the ring with a gaming console. I remember a time when it was unheard of that someone like Sony, or Microsoft, would throw their hat in the ring. What would they gain from taking that risk? Nintendo and Sega (later Nintendo and Sony) were too entrenched in gaming for them to be blindsided by anything a company like Sony could put together.
History is often our best teacher
Back in the day it was literally a joke around the groups I hung with at that time that Sony was working on a console. We would joke that it would be a failure. What gaming experience did Sony have? Well, as it has been documented well elsewhere, they had quite a bit. They had experience with game development through Sony Imagesoft, they had hardware experience via deals with both Sega and Nintendo. Sony had licensing experience throughout their business. Sony was more experienced than many of us gave them credit for.
Google is in a comparable situation right now. They have gaming experience, licensing experience, hardware experience. Google has the clout to bring a console to market and it to be different enough versus the competition that it can become a success.
The pieces are there. Let’s examine them a little closer.
Recently Google hired Phil Harrison, one of the few executives available that worked with both PlayStation and Xbox franchises. This is a big tip off that something is a possibility with Google and a home console.
There are rumors that a Google console would be a continuation of the Made by Google Initiative. The other major component in that area is the Pixel phones which are indeed quite nice, and so is that price tag that they come with. Could a gaming console be far behind?
This technology behind the alleged Google console is already far along in development. There are reportedly early builds powered by Google Chromecast. This is nothing new for Google. Other than Microsoft, Google probably leads the market for development of things that never leave the laboratory.

According to Valuewalk.com, both Mario Queiroz (VP of product management) and Majad Bakar (VP of engineering) are involved in the development Google Yeti which leans towards there being brand new hardware to power it. Now, why would you build brand new hardware to power a streaming service?
You don’t see Netflix boxes for a reason
If you were going for streaming then you would want to work with as many platforms as possible, not limit to your own proprietary hardware. That is why we don’t see Netflix, YouTube, or Twitch boxes on store shelves. They make no sense considering these services are 100% focused on streaming their product to as many users as possible.
What medium would it use?
Well, digital. Duh. This Google console being a streaming machine means it would not use a physical medium outside of a standard like Micro SD cards. I can see there being some internal memory though as the cloud is not all that reliable for everyone. The internal memory being used to either download the game or to download the next portion needed (or knowing Konami, cache the hours of cut scenes in their Metal Gear Solid game).
Google using their clout already
It is reported by Ubergizmo that Google is already courting major game developers. This could be just about anyone though. What are they considering “top developers”? Are we talking about King and their Candy Crush franchise or are we talking about Naughty Dog and their games such as Uncharted (not going to happen) and the Crash Bandicoot Trilogy release?
If anyone could do it, it is Google
Google has the clout. They have the technology. They have the ability. Most of all, they have the finances to weather a rough start with a new console. The question now is, will they do it? Google Yeti is a unique idea only because it is Google and goes completely against the grain of their cut.
I personally will withhold opinion till I see some games. I thought the Ouya was interesting but the games that we saw released were not exactly setting the world on fire. Nintendo has proven time and time again that you don’t have to be number one, or have the most powerful console, to turn a tidy profit. I see this being more of an Xbox run if they do it than a PlayStation surprise hit. Google certainly has the money to make a go of it.