Intel (News - Alert), a company that creates and builds computing devices from the ground up has just revealed that it has officially closed the doors and thrown away the key to the Digital Home Group that was responsible for designing chips for TV set-top boxes including Google TV devices powered by both Sony and Logitech, as well as other Boxee boxes from D-Link (News - Alert).

According to AnandTech, engineers from the shut down group will now be joining the ranks of the Intel tablet division.

Intel officials released a statement in regards to the decision through BusinessInsider saying, "There is a ton of synergy between tablets and TVs (both are mainly content consumption, viewing devices) so we will combine the remaining CE businesses with the tablet organization (headed by Doug Davis). As you can imagine, this was a tough decision – Intel led the creation and launch of the smart TV category and its first products. But, these collective actions will help to ensure that Intel has the best people focused on top business priorities."

This strategic decision by the company comes at time where Google TV simply isn’t meeting expectations, causing Google to look at other avenues in which their product can be released specifically zeroing in on ARM (News - Alert) for the next generation of Google TV. ARM president Tudor Brown acknowledges that his company has been in talks with Google for almost a year now.

So it looks like, Intel will stick to what they do best designing silicon for set-top boxes for IPTV (News - Alert) networks and cable modems and let ARM take the reins of the interactive television project.