The Nexus Q was announced last night at Google's I/O Conference, alongside the firm's new Nexus 7 tablet computer and the new version of Android, 4.1 Jelly Bean.
The media player is a black ball, 4.6-inches in diameter that sits in the home and allows users to stream their favourite entertainment direct from the cloud, including thousands of HD Movies, TV shows and YouTube videos.
Users can connect the device up to the Google Play market to stream videos or play music. The Nexus Q has its own 25 watt amplifier, as well as optical or HDMI ports to connect to the living-room audio system or an HDTV.
There are no downloads and no syncing or running out of space, as all the content is stored in the cloud and then streamed.
"Just use the Google Play and YouTube apps on your Android phone or tablet to surf an ocean of music, TV, movies and music, and Nexus Q will play it all on the biggest speakers and screen in the house," said Google.
"There are no downloads, no syncing, no running out of space. Just the stuff you love - at home and out loud.
"Why shouldn't everyone at the party be able to add their own music, movies and videos to the mix and choose what's playing? All your guests need is an Android phone or tablet and a connection to your Wi-Fi network.
"Prefer your own taste in music? Just turn off guest mode in your Nexus Q settings and it's all you."
Google has separately confirmed plans to start offering movies and TV show purchases on Google Play, alongside the already available rentals.
A range of blockbuster films are now available to buy from the store, while users can also purchase single episodes or entire seasons of their favourite TV shows.
On the music side, Google's Music Manager uploads your iTunes or Windows Media Player library to Google Play, meaning the collection is available to stream through Nexus Q.
There is a ring of 32 LEDs that runs around the device that can change colour in time to the music being played, with a range of selectable effects available.
However, the Nexus Q has already been criticised due to its apparent limitations. The device works very well with Android devices, as users are able to control it with any tablet or smartphone running Google's operating system.
But it is not compatible with other operating systems, thus limiting its functionality somewhat and meaning it is not such a strong competitor to Microsoft's dominant Xbox 360, particularly after the announcement of the new SmartGlass system.
The Nexus Q also costs $299 (£192) without speakers or cables, meaning it is a more expansive option when compared to Apple TV or some streaming media players offered by Sonos and Pure.
But anyone wanting to stream movies, TV shows, YouTube videos and music from a slick device could be sold on the Nexus Q, particularly as it will work well with Google's new Nexus 7 tablet.