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 its name. The company has mainly focused on developing the Android operating system that powers devices such as smartphones, tablets and televisions. It has also allowed other companies to build and brand the hardware that uses it.
The new Android device, along with Google's pending purchase of device maker Motorola Mobility Holdings Inc., also ups the ante in its ongoing tussle with rival Apple Inc., which also controls both the software and hardware process.
I totally understand the wish of any company, large or small, to diversify their income streams. But I can't help but be suspicious that, on some level, the longterm thinkers at Google see a very reduced growth limit for G search, especially as Facebook expands at an exponential rate. Pretty soon much (if not most) of the world will be inside the FB gated community, so if/when FaceSearch happens, Google will be less & less necessary. Thus, diversify now while the money is rolling in, and relegate search to the back burner when that day comes. Can't say I blame them.