Well here’s something interesting. Do I believe it? Meh…hard to say. But I think this can go [at least] one of three ways. It could be exactly what WSJ is saying, in which case I’d expect something like a Nexus TV, or at least something along those lines. Kind of like a lead-device for the TV spectrum Eric Schmidt said would grow incredibly quickly very soon. Another option could be that they’re working with multiple manufacturers for multiple devices to roll out the initial batch of Android @ Home & Android Accessories devices that they introduced at Google I/O 2011. Or, lastly, it could be nothing but them testing out cool things for the Android @ Home /Accessories platform and they’re not making anything official at all.
I’m placing my bets on #2 simply because it seems the most reasonable to me. Google’s been talking about releasing a tablet in the next 6 months, so an entertainment device back-to-back just kind of seems iffy. If so, they’re first real foray into hardware will start with a bang.