Intel rumored to be working on a set-top box

As the PC industry continues to stagnate, rumors suggest that Intel is preparing to make an assault on the living room, going head-to-head against the likes of Apple, Microsoft, and Sony.

Rumors are circulating that chip giant Intel is working on TV service that will feature a set-top box.

Intel, which was once content with being inside your PC, now wants to be inside your home - attached to your television. Problem is, this is an increasingly competitive market space. Apple has had a set-top box for years, Google has been half-heartedly pushing its Google TV platform, and Microsoft, Sony and Nintendo all chose to retrofit their games consoles to act as media centers.

Given this, Intel is going to have to work hard to make its offering different from the rest. The rumors go further than a set-top box, and include licensed content and a back-end service that allows the content to be delivered to every screen, including tablets, PCs and mobile phones.

While the set-top box is the bit that we will see and interact with, it will only be a small cog in a far bigger project.

Intel is also hiring people with the right know-how to make this work, such as Courtnee Westendorf who worked at Apple for over a decade and handled global marketing for the iPhone and iPod.

But even Intel, with all its dollars and tech industry clout, is finding it hard to deal with content providers. Some outlets are claiming that Intel will unveil it at the CES 2013 trade show in Las Vegas later this month, but GigaOM sources say we will have to wait a little longer.

According to the Wall Street Journal, the service may not make an appearance "until as late as the fourth quarter," with sources citing delays in reaching agreements with entertainment companies.

Intel's desire to go head-to-head with established players is further proof of that the PC industry is stalling. Even major players at the heart of the industry are looking to diversify.