Google to Release New Entertainment System

Google (News - Alert) Inc. is developing a home entertainment system that will stream music wirelessly and would be marketing under the company’s own brand, setting itself up to go head-to-head against Apple TV. Google said their version of a wireless entertainment system would use the same hardware as that of Apple’s (News - Alert) products, but would use Google’s Android operating system.

In addition to music, the device may also stream other media. The entertainment system, which could make its debut later this year, would let users download digital content and stream it to other home devices like speakers, also made by Google or third-party vendors.

Google has many products in place for a wireless type of system to be released. They currently have Google Music, which is a cloud-based online music service allowing users to store music and purchase their own collection of albums and songs, which works hand-in-hand with their brand new Google+ social networking site. Google also recently upgraded their YouTube (News - Alert) layout, allowing for users to have channels and scroll through the videos on the site much more easily, making it look very television-like.

According to the Wall Street Journal, this new entertainment device comes as no surprise. “Google entertainment device, in development for several years, is expected to be unveiled later this year. It’s unclear which retailers would sell the entertainment device,” said the Journal.

The Journal reported that Google has been providing its technology to third-party companies and has decided to begin developing their own in-house product. “One person familiar with the matter said Google was hoping to offer the entertainment system, which would bring a new revenue stream to the company, at more-affordable prices than a similar device made by Sonos Inc, which focuses exclusively on music.”

Sonos Co-Founder Tom Cullen said he would be surprised if Google goes through on their plans because these devices don’t bring in huge revenue’s. Cullen said last year his product was worth around $8 billion. However, compared to Google’s revenue of $38 billion he doesn’t see the point. “I’d be stunned if they actually thought it was worth it, because it’s peanuts for them,” said Cullen.

Regardless of what the competition might think, the rumors have started that Google is forging ahead with their plans to create their own entertainment system and release it to gadget hungry fans this year. Whether or not this device will be a true competition for established companies like Apple, only time will tell.