Earlier today Google announced on its Google Mobile Blog that it had handed out a large number of new Android devices to employees as part of its “dogfooding” internal trials program. The Wall Street Journal’s sources claim that the devices that is being distributed is the new Nexus One.

Google Phone is no longer rumor. For all of you wondering, the Google Phone will be called Nexus One according to Wall Street Journal and will be directly be sold by Google.
The phone will be manufactured by HTC, but is completely designed by Google. It will run Android 2.1 and will not be restricted to carriers.
What is the release date? Google hasn’t said a word about it yet.

But specullations put the release date in mid 2010.
It’s fascinating how news can spread so quickly even on a late Saturday afternoon. Nexus One is purported to have a 3.5-inch super high-resolution OLED touchscreen, is thinner than the iPhone, lacking a physical keyboard and two mics. According to Techcrunch, the second mic on the back helps Nexus One eliminate background noise, and it also has a “weirdly” large camera for a phone.