
The juicier story but far more unlikely rumor is that Apple is creating a gaming console. I say unlikely because the gaming market is very saturated right now. Everybody is making money in the industry but consumers, for the most part, are happy with the consoles they currently have. A recent GameFaqs poll said that 73% of gamers do not plan on buying a new console at the end of this year. Not that Gamefaqs is representative of all gamers, but 73% is very high.
The Apple console rumor came via Kotaku, but apparently this Apple rumor has been around for awhile. A similar story was published also in Kotaku in 2006. Two years and no real development from Apple? I think that definitely smashes the rumor.

The rumor about Google getting into the gaming industry is a bit more believable. This rumor spawned out of a Forbes article that looked at the assets of Google in relation to gaming. Google apparently has a gaming-esque program called "Google Lively" that lets people that avatars and interact with other, similar to Second Life. Though not popular, is definitely is a game.
Google's main problem however is that they don't have the big in-house game developers to become a third-party publisher or developer. The only available big-time developers that Google could buy would be Take-two and Valve and both have shown that they do not want to be bought out. Take-two rejected EA's offer and Valve denied any connection with Google.
The rumor stays alive though, because Google has other assets that they could use for gaming. The Forbes article suggests that Google could make an awesome flight simulator using the satellite images from Google Maps as the terrain. Imagine having a virtual dogfight over New York City? Sick. It's a great idea too; the flight simulator genre is untapped for the most part. The only recently successful flight simulator I can think of is Warhawk for the PS3, which came out over a year ago.
So don't be surprised if Google gets in on video games. Be surprised in Apple makes a console though.
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