Kotaku reports that internet search giant Google is developing a video games console using its Android platform and Google Play store as a basis for its console. Reportedly like the OUYA, a console developed and launched after a successful Kickstarter campaign to bring it to market, the Google console will be able to play games currently available for Android-based smart phones.

With the possibly entry of Google into the crowded console market, do traditional mainline consoles face more intense competition for gamer time and money? Possibly, but many of the games currently offered on the Android platform are older versions of games that have previously made their home on consoles as well as more simplistic, flash-type games that would be considered inappropriate for mainline consoles by Sony, Microsoft, or Nintendo. The OUYA and other consoles like it will probably suck away the lower end of the gaming market which could potentially hurt Nintendo in the long run as its bread-and-butter portable system the 3DS is increasingly challenged by more competent games on Android and iPhone smart phones.

[Kotaku]