The Information reports Google (GOOG) is working on an Android-based Nexus set-top, and could launch the device in 1H14. The device is said to support YouTube/Netflix/Hulu streaming (like many other boxes) and (more interestingly) the ability to play certain Android games. It also reportedly comes with a touchpad remote.
The WSJ reported in June Google is working on an Android console, and that it could launch this fall (it doesn't look as if that'll happen). If/when it arrives, Google's set-top could face competition from a next-gen Apple TV supporting game controllers and pay-TV content.
Google's reported set-top efforts might have much to do with the failure of Google TV to live up to the Web giant's lofty ambitions. Its $35 Chromecast HDMI streaming stick has been faring much better.