The Journal said that the devices could be available as soon as this autumn.
Google is also working on a revamped version of the Nexus Q music-streaming device. Google unveiled the Nexus Q in June 2012, but never released the product, which was slammed by critics.
A video game console could provide a significant opportunity for Google to expand Android’s reach beyond its stronghold in smartphones and tablets. However it is dealing with a market which has a lot of competition and has seen a fair few casualties in its time.
The Journal claims that games that run on Android software have proved popular, and they are growing more quickly than games made for the big-name consoles supplied by Microsoft and Sony.
They are certainly different from the big budget titles available on the traditional consoles.
The appeal of such games has prompted the development of new devices aimed specifically for Android by other hardware companies, like Ouya.