Yes, Logitech is giving up on Google TV. But Logitech is only an accessories company anyway, and a company that isn’t that big in the TV market. LG on the other hand, is the 2nd biggest TV manufacturer, and them joining the Google TV ecosystem could be a huge deal for Google TV and it could jumpstart its market. Rumors say that LG will announce a new device that’s running Google TV at CES in January.

Will this be a TV set or a set top box? My bet is on a TV, although I wouldn’t rule out a set top box either. If you ask me, I think all TV’s should come with software like Google TV to drastically enrich your experience, and allow you access to not only the full web and all the online videos, but also applications and games.

There’s a problem with that idea for games, though. It will be fine for most people, but those of you who will want to play the latest console-like games on Android, will be needing recent hardware, too. And since you can’t buy a TV every 2 years, you’ll have to buy an updated set top box with Google TV and more recent hardware.

We’ve heard rumors since late last year that Samsung and Vizio will join Google TV, and they were supposed to release some devices with it sometime early this year, but that hasn’t happened yet, and my guess is it’s mainly Google’s fault. If you remember they were supposed to launch the Android Market about a year ago, too. But they decided against it.

I’m not sure if that’s because they wanted to move to ARM chips anyway, and they didn’t want incompatibility with the native apps made for Intel Atom, or because they wanted to wait for the Honeycomb version – or both. But I don’t think Samsung has given up on it. They know just how much joining an ecosystem like Android has helped them in the smartphone market, and I’m sure they realize that it would help them to join and help build the Google TV ecosystem, too.

[Via Phandroid; Source Bloomberg]