Google should enter the console wars as it has the resources to do so, it could be a quite profitiable venture, and doing so would give consumers more choice. The challenge would be differentiating itself from the current offers, but there are still holes in the gaming market which Google could exploit. Rather than attempt to compete with Microsoft and Sony, it could offer a less powerful but much cheaper console for example.
It would be interesting to see what Google can come up with and how it can compete with the likes of Microsoft, Sony, and Nintendo. Google has done wonders in the phone market and it only entered that category a few years ago. The problem lies in whether their product will be successful or not.
Google should make its own entry into the console wars. They should do so because they already have success with the marketing of other electronics. A console by Google would mostly likely be competitive price-wise and would work in sync with many Google services. People who are fans of Google would eagerly buy one.
I love all of Google's products, and was a very early adopter of the Nexus 7. The tablet is amazing and worked better than I would have ever imagined. Google is a company with a lot of resources and foresight, so it is very likely that an entry into the market would be successful.
No, Google should not make its own entry into the console wars, because Google is already spread too thin. People are already concerned that Google controls too much our lives. A Google console would not sell very well, because people would be too concerned that Google would use the invitations into their homes to data mine.