Yesterday, news broke that chip giant Intel, frustrated with “everyone doing a half-assed Google TV", is prepping its own set-top box and  cable service for an introduction at the CES show, which runs January 8-11 (iDB will be there!). The report noted Intel “has a plan to overcome licensing hurdles” by rolling out the TV service gradually, on a city-by-city basis.

Today, The Wall Street Journal throws its proverbial credibility behind the rumor, but also explains that Intel, just like Apple, has found that Hollywood is proving to be a much tougher nut to crack...

The world's leading chip maker Intel, which supplies processors for Apple's Mac notebooks and desktops, is reportedly prepping to launch its rumored virtual cable TV service and set-top box because the company was frustrated with “everyone doing a half-assed Google TV so it’s going to do it themselves and do it right”, according to sources that spoke with TechCrunch.

Intel allegedly "has a plan to overcome licensing hurdles" that Apple reportedly has been facing for some time in its attempts to woo big-budget Hollywoood studios. The semiconductor giant will apparently roll out the service on a city-by-city basis rather than nationwide, opting to cut content deals on a per-market basis.

Apple, of course, has long been rumored to be testing prototypes of a full-fledged 46 to 55-inch television sets as the living room remains "an area of intense interest" for the Cupertino giant...