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Google to enter hardware game?

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 10 Feb 2012

Google is reportedly looking to begin selling its own consumer electronics, with rumours emerging of its own home entertainment system. According to a Wall Street Journal report, the entertainment system will be able to stream music wirelessly through the home by tapping into Google's recently launched online music .

The system is said to have been in the works for a number of years, and is expected to become available later this year. Google's marketing of entertainment hardware would push the search giant further into its competitors' territory - especially that of Apple.

In a filing with the Federal Communications Commission, Google was scheduled to begin testing 252 devices from the beginning of January into July. The filing states: “Google is developing an entertainment device that requires testing outside the laboratory environment. The device is in the prototyping phase and will be modified prior to final testing.”

The search giant has already shown its intentions to broaden the scope of its ecosystem and to further differentiate its business from a reliance on search and . At the Google I/O conference last year, the company demonstrated Android@Home hub devices. Google has already been working with television manufacturers such as Samsung and Sony to launch Google TV, while also building its own ultra-high-speed broadband network, Google Fibre, which it is rumoured to be using to experiment with Internet on TV and bundled services.

Keeping up

MD of Strategy Worx Steven Ambrose says he thinks it is unlikely for Google to enter the market with home entertainment hardware themselves. “That being said, they are close to finalising their purchase of Motorola, which has a whole home services division, focusing on networking and set-top boxes, that provide movies and other streaming content,” says Ambrose, adding that the Google TV platform is yet to make an impression.

“Apple's strategy is fairly well advanced, and they lead in the music and movies business. Microsoft via Zune, and SkyDrive as well as Xbox, are also converging on a play in this space. It is only logical that Google, with movies via YouTube, music via its own music platform, and now TV via Google TV, are consolidated into a coherent offering which will at some level include hardware.”

Ambrose says there is little chance of success for Google to enter the hardware manufacturing and distribution market. “It makes far more sense for them to utilise partners and simply make money from providing the services. The Motorola strategy may be very strategic in this regard, as Motorola is very big in the manufacture distribution and management of hardware-based home entertainment platforms.”

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