This was a real interview question asked by a PM at Google.
I failed that interview. Hard. Read more here if you're interested.
Here's how I would answer the question today.
1) Let's start by making sure we're aligned on the mission and goals
Google is primarily known as a tech company. Its public mission is "to organize the world’s information and make it universally accessible and useful."
Does it make sense to build this product?
When I think about Google, it's primarily software and services. But there are other non-software: Google Pixel, mobile phones. Chromebook laptops. Google Fiber--which is infrastructure for internet.
There maybe more. But I'm trying to resist the urge to search "Google hardware projects" since I wouldn't have the luxury during a real interview.
Hardware products are often not profitable on their own. They often exist to strength a company's core. To broaden a customer base. To connect more people on Google's network. To gather more data.
When I think about an ATM--I think about a standalone single-purpose machine, usually placed in a bank or convenience store.
2)