The FT is reporting that Google, working with Intel and Sony, is getting ready to launch its Smart TV service, maybe as early as Wednesday when the Google I/O conference starts.

A set-top box is expected to be announced which runs on an Intel Atom processor and the Android OS, alongside internet integrated televisions from Sony which will also offer the Smart TV service.

Google will be able to call upon the huge amount of Android developers to create applications for the service. The FT spoke to Kurt Scherf, principal analyst at research firm Parks Associates, who said that the move could prove extremely appealing for advertising agencies, as the service may open up a wealth of new advertising streams.

“Consumer electronics manufacturers want a piece of this pie and Google is the player in this very crowded space that can immediately offer them revenue share”, said Scherf.

We told you last month how Samsung is also interested in getting involved with Google's TV party. Whether it does or not remains to be seen, but what is certain is that Internet and TV are reaching a cross over point and the market is becoming awash with internet enabled devices and services.

Where do you guys stand on this? Are we ready for Google to take over our living rooms? Let us know.