When I first heard about Android TV I also wondered why Google was bothering with it given how successful the Chromecast seems to have been with consumers. It seemed quite odd to me that Google would suddenly decide to take on Amazon and Apple when it already had a very popular TV product.
But I think if you take another look at this it actually makes some sense. The Android TV device will most likely sell for around the same price as the Apple TV and the Amazon Fire TV: $99. So it will be competing at a slightly higher spot in the market than the Chromecast, which sells for about $35.
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