It seems like every computer-focused tech company is moving into the living room these days — rumors of an Apple television have been on and off for quite awhile now, and now we’re hearing that Intel might get in on the action as well.

While Apple is supposedly going with a complete television set, Intel’s offering might come in the form of their own virtual cable TV service and set top box.

A source in the video distribution industry directly familiar with Intel’s plans and content dealings tells TechCrunch the semiconductor company is dead serious about getting its chips into the living room. After its effort to convince smart TV manufacturers to use its chips in the initial launch of Google TV failed a few years ago, it’s decided to go it alone. The source said that Intel was frustrated with “everyone doing a half-assed Google TV so it’s going to do it themselves and do it right.”

The plan is to create a set-top box and subscription TV service that would appeal to people who want streaming TV access but don’t want to entirely cut the cable cord and lose key content like sports.

One of the problems that has been slowing down Apple’s move into TV is securing deals with content providers, and Intel has been facing the issue. To combat this, Intel has decided to roll out their service at a city-by-city basis as opposed to launching nationwide outright, allowing them to negotiate with content providers over smaller markets.

Interested in hearing more? CES 2013 is coming up in just a few more days, and we should be hearing more then.

[via TechCrunch]