Ever since the speculations of Google acquiring YouTube started and when it actually acquired YouTube, the million dollar question has been — what is Google going to do with Google Video. Today, Google posted about it on their official blog –

Google’s strength — and its history — is grounded in search and in innovating technologies to make more information more available and accessible. YouTube, meanwhile, excels at being a leading content destination with a dynamic community of users who create, watch and share videos worldwide.

Google search results already include links to content that’s hosted on YouTube. Starting today, YouTube video results will appear in the Google Video search index: when you click on YouTube thumbnails, you will be taken to YouTube.com to experience the videos. Over time, Google Video will become even more comprehensive as it evolves into a service where you can search for the world’s online video content, irrespective of where it may be hosted.

This is part of Google’s overall goal to give you the highest quality search results possible. For example, some users who do a Google search for Martin Luther King, Jr. may want to find websites about him. Others may want to see images of him. And others may want to watch video footage…

YouTube, as we’ve stated previously, will remain an independent subsidiary of Google, and will continue to operate separately. Google will support YouTube by providing access to search and monetization platforms and, when/where YouTube launches internationally, to international resources. YouTube co-founders Chad Hurley and Steve Chen and the rest of the YouTube team will continue to innovate exciting new ways for people to “broadcast themselves.”

So, what do you think of this strategy — of having two competing products in the market? What role do you think that ego-match between two teams developing the two products will play?