WSJ reports on Google's new home entertainment device.

Google Developing Home Entertainment System

By AMIR EFRATI And ETHAN SMITH

Google Inc. is developing a home-entertainment system that streams music wirelessly throughout the home and would be marketed under the company's own brand, according to people briefed on the company's plans.

The effort marks a sharp shift in strategy for Google, which for the first would time would design and market consumer electronic devices under the Google brand. The company has up to now mainly focused on developing the operating system that powers devices such as smartphones, tablets and televisions and allowing other companies to build and brand the hardware that uses it.

Google's Android unit has led a multi-year effort to develop the new entertainment device, which is expected to be unveiled later this year, people familiar with the matter said.

Seems like Google and Apple are more on a collision course.

Partnerships between Google and device makers have made Android the No.1 operating system in smartphones in the U.S. and helped Google to extend its Web-search engine and other applications into devices beyond PCs. Google doesn't generate any revenue from sales of the devices.