People familiar with the matter say that Motorola and other manufacturers will make tablets that will be sold directly through the Google webstore. One tablet to be sold at the Google webstore will by made by Asus, later this year.
NVIDIA is also rumored to be making a tablet for Google that will sell for $199.
The Google-branded tablet is expected to increase Android tablet market share to generate more advertising, maps and other Google services. The tablets will be competitive to the Amazon's Kindle Fire and Apple iPad.
Most tablets are not sold by carriers but are Wi-Fi connected where Google believes it will have an advantage in direct web sales.
Google will also devote huge marketing support to the tablet store and has learned from the Nexus One online store debacle. Google failed in the phone market because it had to work with the carriers that offered competing smartphones to the Nexus One.
The latest Google Nexus tablet rumor is that new seven-incher will sell for between $149 and $199 made by Aus.
Kindle Fire rumors are also heating up, with the most recent suggesting a 10-inch Kindle Fire in the works to take aim at the iPad.
2012 could be a year where we finally get a good full-featured $200 tablet, which of course can't ever beat out the legendary 10" HP TouchPad for $99 during the tablet fire sale of the century until the April 1 shake up.