You do realize this is not even an analyst rumor? Here's the quote from the WSJ article this article came from
http://online.wsj.com/article_email/SB10001424127887323689204578571992848684764-lMyQjAxMTAzMDIwNzEyNDcyWj.html
"Google Inc. GOOG +0.39% is developing a videogame console and wristwatch powered by its Android operating system,
according to people familiar with the matter, as the Internet company seeks to spread the software beyond smartphones and tablets.
With the game machine and digital watch, Google is hoping to combat similar devices that Apple Inc. AAPL -1.08% may release in the future, according to the people."
It's no more true than the iWatch, a TV by Apple or any other device with "people familiar with the matter".
Google's stock is near an all time high, Apple's stock is tanking along with worldwide smartphone market share.
iOS 7 Pastel Edition and a MacPro that is as limited as the Mac Mini for upgrades is what Apple has announced and the stock has continue to drop since the WWDC Conference.
Please consider the facts above before you put the RIP stone on Google's next speculated product.