Word out of the WSJ camp comes news (mostly rumor at this point in time) that Google may be making a home entertainment system, and it could very well not be limited to just streaming music and/or movies.  The device is said to be in the making for a couple of years now, will be powered by Android, and will be branded under the Google name.  The WSJ is saying this is for streaming music, but knowing Google, they wont go through the trouble and R&D just for a device to stream music.

Our best guess is a full fledged home console/entertainment system, similar to the Xbox 360, is in the making.  Lets just look at the facts.  Android has taken off by storm.  They activate 700,000 devices a day.  Thats 700,000 people per day that could be playing a game, buying an album, watching a movie.  Android has over 250 million activated phones now.  Compare that to the 60 million or so Xbox 360 consoles, and a picture starts to paint in your mind.  Google knows it’s onto something big here.

Google I/O, the developer conference, is only a few months away, so we expect some big news to come.  Keep it locked to GF and we will update you as we learn more!