Google is developing an "aggressively priced" set top box that will compete directly with the Apple TV.
The device will run on Android, of course, stream video content from YouTube, Hulu and Netflix and play video games.
According to a new report from The Information, that appears to confirm earlier whispers from the Wall Street Journal, the product was actually demoed, albeit in secret, at the 2013 CES back in January and other core features include Google Hangouts integration for multimedia communication, essentially turning a TV set into a video conferencing system.
The box won't be able to stream live TV but, if the unnamed Google employees quoted in the article are correct, it will have an integrated video camera and a motion sensor. As such, it won't only be competing with the Apple TV but it could challenge everything from the Ouya gaming console to the latest Xbox and PlayStation too.
Google already offers something called the Chromecast, which looks like a USB flash drive and plugs directly into the back of a television set via the HDMI interface.
Once connected, it can be used to mirror the content on an Android or even Apple smartphone or tablet on a TV screen, including some apps. Since its announcement in May, Google has also added support for HBO Go, Hulu and Netflix to the $35 device.