Following the release of the Android-based video game console Ouya, Google is reportedly developing one of its own, reported the Wall Street Journal.

According to "people familiar with the matter," the Internet company will also release an Android-based wristwatch. The release of the two devices is reportedly an effort for Google to "combat similar devices that Apple may release in the future."

Google is also getting ready to release the second version of its media-streaming device, the Nexus Q, announced last year but not sold to the public.

Sony, Microsoft and Nintendo currently dominate the video game industry. Google's video game console is not expected to compete with Sony's upcoming PlayStation 4, Microsoft's upcoming Xbox One and Nintendo's Wii U, but it will compete with the recently released Ouya.

Google's video game development is a preemptive reaction to speculation that Apple might launch a video game console with its next Apple TV product. Spokesmen for both Google and Apple did not comment.

Amid the upcoming Android release this fall, the Journal's report also said Google is looking to widely expand the kinds of devices running Android. In addition to the watch and game console, Google is reportedly looking to apply Android software to laptops and household appliances such as refrigerators.

As for what the new video game console will like, that is up for speculation, but since it will not be competing with the three home console giants, users can expect a smaller, less expensive system.

Forbes' contributor Paul Tassi said, "It's more like Google and Apple are creating an entirely new league for themselves."

Tassi wrote that Google and Apple's game consoles would most likely bring the Android and iOS favorites like "Angry Birds" and "Cut the Rope" to a large screen, rather than tackling titles like "Madden" or "Call of Duty."

Tassi also suggested the two upcoming consoles will not be competing with the Ouya.

"Rather for now, this is competing with the little guy. Though 'destroying' might be a better descriptor than competing," Tassi wrote. "I'm talking about the Ouya, of course."