OK, I think I've got it now...
Ouya - Android based gaming platform. They don't plan to use Google Play store
Onlive - Will have it's platform on Ouya (Android), and it's store of games.
Gabe Newell doesn't like Windows 8, is working on other platforms.
Blizzard Exec doesn't like Windows 8 either
Google, is running fiber to KC and hopefully future locations. The already have Google TV. They are deploying a TV box, a network box, etc with their Google Fiber. They have a 200 dollar tablet, and they have some other media gizmo out there now.
Why the heck, Google which owns Android, why aren't they making a game system?
They could own Ouya, make it part of their own package and replace multiple other boxes out there. They could put money towards Online and Steam and anything else. People would jump on board. - Google - Jump On Board! (hahahaha)
Google - Buys Ouya, Onlive, teams up with Valve (steam), Activision, and EA. Done.
Think about this for a minute. Isn't there a large percent of people that watch streaming video and use other apps on the Xbox? Why would they do that when they have a great system for playing video games, with still leading edge console current gen graphics? Why do people game on their mobile devices, and not hook them up to their TV's to watch movies and play games that much? You can get cheap adapters, HDMI cables, for a couple years now. I don't know anyone that hardly does this. You can use bluetooth keyboard and mice, yet not many do that either. Why do people stream lesser quality video on their big HD TV's when they could watch DVD or watch Blu-ray movies?
Usability and easy access to media.
The xbox, you can turn it on and do many things. Why shut it down, switch discs, change to PS3 to watch bluray, when you can just open Netflix or Amazon prime apps and watch thousands of TV and movies, and all the other options on Xbox Live. Why shutdown your console, switch HDMI connection on your TV, and use Apple TV? Yes people can be lazy. However, people have been asking for this for YEARS. They don't want discs, they want easy access to media. Supposedly they download crap, illegally, because it is easier for them and the companies were not previously giving them other EASIER options than downloading illegally.. HBO, Game of Thrones, no streaming = highest downloaded illegal show. So now the platforms are being created and people are using them, because this is what they want.
There is a reason EA doesn't want to be on steam, they want their own platform to lock you into sales. There is a reason people don't want to leave Apple devices, even though they cost more, they want their already purchased media and apps.
Google has the money, they have the platform, they have the network infrastructure, the have all the media services. Imagine checking your mail and viewing your calendar from a console, if you wanted as well. Google Now when you fire up your system. Everything is there or in the works.
If Google doesn't get into gaming, they are losing people to other platforms. It is not about just games, it is about all the other media Google, MS, and Apple are competing against, and games will take people away to other platforms because - Usability and easy access to media.