Google is developing a wireless, streaming home entertainment system to be released under their own brand, according to insider tips given to the Wall Street Journal. This would be a big change for Google, who so far has developed only software and allowed other companies to use as they please (mostly) on their own hardware. Supposedly, the Android team has been developing this one, and it should be available this year.
We already have Google Music, Google Movies, and Google TV. A mashup of the three featuring a set-top box and audio visual receiver (possibly made by Motorola) makes a lot of sense. Seeing it sold under a Google brand makes less sense, but it's not impossible that the company is going forward an idea like this. Their proposed purchase of Motorola Mobility, which includes the cable box division, would give them access to hardware design and manufacturing, as well as engineers to do it.
We'll have to wait and see how this develops. Personally, I'm excited about a full home theater-like system powered by Android, and controlled by my smartphone. I think more than a few of you guys would be as well.