According to a Wall Street Journal report (sourced by IGN), Google has been secretly developing an Android-based home games console, which could be available as soon as this fall. Citing anonymous sources close to the situation, the WSJ claims that the console is just one of a number of secret projects Google has been working on. Other alleged secret projects include a smart watch and a revamped version of its Nexus Q set-top streaming box.
Given the number of Android-based home consoles already in the works (GameStick, Nvidia's Shield) or already at retail (Ouya) Google will have some stiff competition already in the marketplace by the time it releases its console. How this particular device will have an advantage over those consoles (many of which are priced at or around $100) remains to be seen.
Google has not publically commented on this story.