G!Messenger or gMessenger: Is Google working on its version of IM?

I overheard this conversation during a recent visit to a local Java Users Group.

Person A: (muffled)
Person B: Do you think ‘G Messenger’ would have all the capabilities?
Person A: (muffled)
Person B: Do you know anything about the launch?
Person A: (muffled)

The above two sentences hit my head. Does G stands for Google? Is Google planning to launch its own version of Instant Messenger? It makes sense. Google is already rumoured to enter the desktop search market. It already has couple of tools viz. Deskbar, Toolbar and GMail Notifier.
Natural progression a la Yahoo. Yahoo entered the IM market and now has almost every offering within IM. Chat is just one function. The IM products from almost all the major players AOL, MSN, Yahoo have search, news, stocks, weather, etc. What these products lacked is the desktop search and Google is taking this head-on with Microsoft.
I am not sure whether my judgement its true. I cannot guarantee the merits of the conversation. I just overheard something which might be something else and took it for Google since it is always on my mind.
OK. The above conversation was sheer dramatization but, I did attend a local JUG and a boring topic got my thoughts going. But, if I were Google, that would be the next move anyway. Google Messenger with Search, News, Froogle, RSS Aggregator, E-mail alerts etc. Anybody listening at Google?

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