I'm not sure Google (or Apple) will go head to head with next-gen consoles, neither that if they were to have proper consoles it would be a significant threat to the "PS180" (sorry I had to find something as convenient as ps360), though it could throw quite a wrench at MSFT and Sony and have a destabilizing effect on the whole market.
I can see none going with physical media for example, and I can see them go with incremental updates of their hardware. S if not a massive threat it could shorten the lifespam of the PS180.
For games, I think that they would have a lot of what you find on iOS and Android now, with an increase in quality, a sort high quality revival of what could qualify as retro gaming.
I could also see some port of the big(gest) multi-platform games, imo I would be surprised if any of the big publishers pass on porting big games on an Apple or Google if they were to deliver good enough hardware (/porting is not a pain).
To me Google is more threatening than Apple, with Android and services offered through the cloud being a sane substitute to Windows for the casual user, with usually pretty open policies and what they do with phone and tablet, I could see Google showing the path with a sort of reference platform as the Nexus line is and then having the integrators to compete. Shortly that means having multiple vendors competing on prices, perfs, etc. A sort of new "PC" markets.
It also mean that they could get Chinese manufacturers and vertically integrated companies as Samsung to enter the show, and god know how low they could the price.
I don't think that Google would not need to set minimal requirements as any under performing platform, first would look bad in a competitive market and 2 would just be a new Google Tv type of device, we know how much success those devices have. Shortly for the segment to exist (and google getting share of the software sales and integrators making some money on hardware) the device would have to be compliant with the market it tries to address, which is gaming you may not need PS180 level of perfs still you need perfs.
I think they will aim for something cheap, really cheap, max 149$ so they are an attractive option for the casual and kids (wii style) /impulse buy.
I also think that there won't be any pay-wall to play online or anything, and I see that as a competitive advantage, if they can get a couples of big FPS titles to run at sane settings on their hardware.
I think Google might be carefully looking at what MSFT is doing with the cloud, and mostly match it (for free though). Actually I think they will also use to relieve the requirement on storage and RAM for games: namely FMV and music will be streamed through their youtube infrastructure.
They won't charge the publishers for the use of their cloud at all, I could see them introduce ads "TV style" every 15-30 minutes (though short break like one spot), I would expect those ads break to be synchronized, aka say you play multi-players games all the players are on alt at the same time (other approach would be troublesome).
Then there is the weight of the environment and at this point I would dare to say that Android is getting more relevant than Windows. There a shit load of Android devices out there allowing them to plan for local MP games of a scale only Apple could match.
The device will be always on and synchronize with your calendar for example parents could set on their (google) calendar when kids can play, or having the device to turn on TV.
I think that they need good voice recognition.
THe device could play multiple instances (linked to different accounts) of casual/not demanding games => MP focus. You could have four play on the main screen (split screen or not, depending on the games) and quite a few other in the same room playing on their phones or tablets /massive local MP with the option for more player "in da cloud".
Universal pad support across Android devices.
For the hardware imo you don't need much to qualify as "next geny", especially if Sony move toward GDDR5 and AMD possibly toward GDDR5M makes that type of memory a bit less "boutique".
There won't be a HDD, though a HDD slot would be welcome (if Google doesn't include it other vendor could).
32MB of Flash should be fine backed by a couple of SD card readers.
The goal would be to run the big titles, though in lesser setting, lesser textures, lesser sounds, etc => less storage require. It should lower the requirement on RAM nicely. It should also significantly lower requirement for the GPU (playing with resolution).
Though I think they need a competitive CPU and GPGPU capabilities.
The system would not be bond to a specific ISA, one could use MIPS, ARM or X86 cpus.
Nvidia, AMD, PowerVR, should have compliant solutions.
I'm not sure about what would be enough as far as RAM is concerned, I think that GDDR5 is almost madatory but the amount? 2GB could do if the OS clears a lot of memory while playing high profile games for the bulk of the production it won't an issue. More obviously would be great.
With regard to processing power and power budget, I would think the reference platform from Google would aim low. For the processing power I would think for the platform as a whole somewhere in between 0.5 TFLOPS and 1TFLOPS, closer to the former than to the later.
Overall it could be sort of super WiiU, backed by the cloud to cover (partially) some of its lacking (storage and RAM), a PS4 one a strenuous diet.
It would be tiny,
think that but with only 2 memory chips (if 8Gb GDDR5 memory are really coming) so most likely cheap.
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Overall really casual oriented and also toward kids of the touch generation but attractive enough (Google is BIG, Android too) for the editors to consider porting their big titles. The attractive to "casual" core gamer would be price and no fee for mp. I think Google would price the couples big AAA it gets competitively and offer great deal in the same manner as Steam.
The price would make the console viable on quite some markets (emergent).
The system would not need much more than a couples of big games a year (at first at least).
It would try to get where Nintendo would not with the WiiU, not only because of underwhelming hardware but because Nintendo simply is not google.
Overall I'm not too surprised about that rumors, I'm not sure it will happen either but looking at Google size, the fact that soon next geny experience should be achievable for a sane price, it would actually weird if Google (the same applies to Apple) is not regularly evaluating their option to enter this field.
