Google is working on a new project named YETI. It is supposed to be a gaming streaming service according to rumours. This may also include hardware specifically designed for such a service.
If Google decides to build hardware around this project, it won’t be really against the Playstation and XBOX devices, but more against the Switch. Just like Nvidia’s GeForce Now, the game will be processed on a server, but i don’t think Google plans to make graphically intensive games. It will probably have titles that are more fun to play rather than competitive, targeting multiplayer local and online experiences.
Google has been working with many developers for games for a while now and recently hired a Sony researcher to work on YETI. If we see a console, it will probably be similar to the Nvidia shield console. The main difference and advantage will be the Google integration with TV features and the Google Assistant. At the same time there will be support for all the Android games and direct Streaming to Google services.
The whole gaming industry has a lot of value and it is logical for Google to make such an investment. They have a lot of intelligent people working on this project and most say that it will be a success. The main thing that remains to be seen is the kinds of games we will see coming out designed for this service. It is possible to see amazing graphics, but most probably Google will focus on the experience just like Nintendo did and has proven so successful with the switch.