When Google acquired YouTube last October, We were bit confused on how the company will manage two video sharing sites simultaneously. Some speculated that Google Videos might end. Google has now revealed that Google Videos will be transformed into a video search index and YouTube will continue to be a video sharing site. From now on, Google Videos will should results from YouTube. Eventually, Google Videos will index all video hosting sites.
Google Blog writes: 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.
Right now, YouTube dominates the search results from Google Videos because YouTube leads in-terms of content. I think, it’s a good idea to keep YouTube as a separate subsidiary of Google. YouTube has a good video-sharing community where as Google is good at search.

wrote, on January 26th, 2007
That is quite amazing that they don’t transform it into Google *. I don’t believe they let it go as YouTube. Then again, I figure that most people don’t know Google owns it and it might scare them away. Who knows?