If I were Google, I'd blow a fat wad of those billions and buy Sony. There's a company that would really fill in a lot of Google's gaps - gaming, consumer hardware beyond the cellphone scale, a big library of media properties to integrate into the Play store.
A quick Googling puts Sony's market cap at $18B. A big chunk of Google's cash reserves, but imagine how terrified Microsoft would be of Android-powered PS5s.
I'm not sure I agree with this. According to this article:
http://www.forbes.com/sites/adamhartung/2013/01/20/sell-micr...
"Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums in its on-line division (negative $350M-$750M/quarter)."
I realize they're trying to position the XBOX One as your home entertainment hub - but the bigger question is whether there's a future for home gaming consoles at all, or whether that functionality will just be folded into your TV, cast from your mobile devices, or handled by some other connected multi-purpose device.