#1 OS but not making any money from it.
So if they leave behind some older devices, what have they got to lose?
Or exclude a lot of cheap devices sold in the developing world or for low-end markets (sub $150 devices).
Does Google care about making money on Android?
For them Android is just a mean for the users to get to their online services and their Appstore.
They want to maximize those profits that bad that they give it for free.
Idem with their hardware, they give it for "free" /make no money on it.
EDIT
People speaking of Ouya are just wishing Google to fail or to be stupid imo. Ouya doesn't have the hardware necessary to run multiple instances of some "demanding" Android games. I don't see low budget game developer starting to develop for split screen, etc. even if Google has a "console", it will be useless on a lot of (most) Android devices. The console would have imo to be able to runs multiple instances.
An obvious leverage of Google position (and market share in the OS and phones/tablets realm) would be to have multi-session, people in a room can sign into the device with their phone and play for example 4players MP (split screen) + giving the option to more player be it locally or not to join it playing through other devices (from phones to tablets or other consoles).
That is for Android games, imo it should be doable to push more and if their negotiations with publishers go well they could get port for the big AAA games, this year the ps360 will get ports, technically it is doable especially as I don't think Google will launch anytime soon.
Google has a lot of work to do, from the OS to put to good use their cloud infrastructure to the publishers, though I don't think that they are stupid enough to waste time on shipping a Google Tv +. That will get them nowhere and is a waste of time and money.
All Google devices get you a lot for the price, if you look at a 99$ Google TV, it is their worst deal (if you compare to what you get for 199$ with the Nexus 7 or 299$ with the Nexus 4) and yet add 50$ and you could do something interesting.
I think that they have a clear shot and partners would be willing to follow if Google sets the path, you have Ouya but also Madcatz and more interesting Nvidia shield.
To me the display of negativity about something still unknown, when ERP stated that they are working on something "game oriented", etc. says nothing about what Google will do or could do but only about hard core geeks people conservatism or biaises.
Google is in an interesting position there is a lot they can do or try, I see plenty of opportunities for them, if I go with the SWOT approach, I see relatively few "weaknesess" and ~no threat tobusiness bottom line. Imo they almost have "free shot" at trying, whatever progress they make on the process even if it fails ultimately will be useful for Android devices (cloud infrastructures, better API, more stremlined MP integration, change wrt OS), those R&D expenses should be easily leverage in the field they are already dominant.