Google to do hardware?

Google could be about to shift its focus from software and search to hardware.

The search giant, which has of late diversified into Web analytics and classifieds among other services, is eyeing the PC market, according to a report in the LA Times.

The newspaper quotes sources as saying Google is now in negotiations with retailers including Asda parent Wal-Mart to sell a low-cost PC or other computing device.

The paper speculates the product may well see the light of day from as early as this month, possibly during Google co-founder Larry Page's keynote speech at the Consumer Electronics Show in Las Vegas this week.

Industry watchers have also speculated the keynote may instead see the arrival of a Google-branded media gateway.