Google is developing an Android-powered video games console and wristwatch, people familiar with the matter have told the Wall Street Journal.

The search engine juggernaut is believed to be preparing the devices to combat similarly-rumoured developments by Apple.

The sources say that Google has been closely following the Ouya Android console project, which launched earlier this week.

A Google spokesperson declined to comment.

While a full-fledged Android console seems somewhat pointless, a set-top box that brings together media functionality and gaming could find a place in people's homes.

There's also the possibility that dissatisfaction with Ouya could make consumers weary of another such device.

Source: WSJ