The Journal cited unnamed sources as saying that the California-based Internet titan is out to expand its hardware line-up to include a new version of a Nexus Q digital media device introduced last year but never brought to market.
Google has openly shared a vision of its free Android operating software being used to put brains into a broad range of devices, including typically 'dumb' machines such as refrigerators or clothes dryers.
Efforts to develop a watch and a game console come as rumors spread of plans for a new-generation Apple TV box, as well as a smart watch, from Google's Cupertino, California-based rival.
Microsoft and Sony have also set out to tighten their grips on modern-day home entertainment with new generation Xbox One and PlayStation 4 videogame consoles, which are to be released late this year.
Google did not return AFP requests for comment.
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