Google is supposedly laying the groundwork for a new gaming platform. One that is said will challenge the dominance of Sony and Microsoft. Details about Project Yeti are still somewhat vague, but it seems to include a streaming service, YouTube integration, and first party titles.
The existence of the Project Yeti streaming service has been rumoured for some time now, with some sources being aware that it is being worked on. However, there have been few leaks on that front. Aside from the fact that gaming hardware is now being talked about.
A direct challenge to PlayStation and Xbox is somewhat unlikely. Although, it isn’t entirely out of question for Google. Especially since the company is now committed to building hardware like the Google Home speakers, or the Pixel smartphones. Whether it will succeed is another story. There have been attempts at breaking into the console maker market over the last few years, and all have failed spectacularly.
Google is also said to have met with game developers at E3 with the intention of bringing them onboard with Project Yeti. The goal seems to have been to build games for the platform, but there also seems to be the intention of acquiring these studios to bring development in-house.
There’s no certainty that something will actually result in a real product. Google is known to explore the possibility of a new product without actually creating anything. If there is anything, it is likely to be a long time before Mountain View makes an announcement.