Answering questions about a browser, Schmidt said: "We would only do so if we thought there was a real user benefit. "The industry is obsessed with this browser question," he added. "And our observation is you have a number of good browsers now."
This doesn't mean it's completely out of Google's scope. As a software development company, they've had success with users receiving their desktop utilities, and Google's toolbar is likely the most popular browser extension out there, being automatically coupled in many browsers. Adding more competetion to the mix likely isn't a good idea for them now, though.