A Google Videos app suddenly popped out of the Android Market on the night of July 3 and mysteriously disappeared after a while. Before this, only a bunch of Xoom owners had access to the app, but after the incident, those who got hold of the app just received annoying server errors.

This Videos app might not be so mysterious after all. After Google’s acquisition of YouTube and various attempts to revive it, the future that awaits Google Videos is reportedly an app reducing the service to a mere video rental service which will give Android users in the United States access to thousands of titles. However, rental services are also provided to desktop and even TV users. A brief history: Google Videos used to be like Youtube where one can upload videos, and view and share them until the big G acquired the latter. The most recent version running on our browsers is a search engine specifically for videos, aggregating results from almost all video-sharing sites online.

While its appearance in the Market might be brief, it gives the impression that this app will be available soon, although there is still no word on what Android devices will be compatible with the app and when will be the official release of Google Videos in the Market. Until then, we can never tell if the app can change its destiny and eventually beat other title renters.

Here’s a brief video shot of the app by a Nexus S user:

via Engadget