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The New York Times reports that Google is working on a set top box which is to be powered by the open source Android operating system. They have reportedly teamed up with Intel and Sony and will be entering the tv market where Yahoo has already “failed” in a similar endeavor (Yahoo widgets).

The Business Insider expounds on the key points:

• Google is working on a platform called Google TV with Sony and Intel.
• It’s based on Google’s Android OS, and will be open source.
• Users will be able to do Web stuff like search, plus watch Web video from sites like YouTube, and maybe Hulu.
• Google and Intel want to move into the TV business, where they have little presence. Sony wants to compete with Vizio on something other than price.
• Google wants software companies to write apps for Google TV, the same way they do for Android phones.
• Logitech is teaming up for peripherals, including a remote with a tiny keyboard.
• The companies are hiring for Android-related jobs.
• Google obviously wants to put adson this system.
• Google has built a prototype set-top box, but the software might be built straight on to TV sets.
• Google TV will use a special version of Google’s Chrome browser.
• Sony may develop a new brand for TVs running Google TV.

This is indeed exciting territory for a company that has engaged on the largest expansion we’ve seen yet, from simply offering ‘search’ a decade or so years ago; to pioneering in not only coding the Android OS but designing and manufacturing it’s very own phone (Nexus One). Google has shown that it means business; and by that, they are planning on infiltrating every facet of the technology industry.

It is interesting to note that Google’s entry into the TV market will most probably be in direct competition with the ambitions of Apple. Google and Apple have been engaged in a raging battle in the Phone market and soon to be in the Tablet/slate market (with the anticipated release of Chrome OS).