Google Inc. GOOG +0.01% 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 -0.73% may release in the future, according to the people.

Google is also preparing to release a second version of an Android-powered media-streaming device, called Nexus Q, that was unveiled last year but not sold to the public, these people said.

The Internet giant hopes to design and market the devices itself and release at least one of them this fall, they added.
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--jeremy