Update: 12/27 – Logitech has issued a statement denying this story.

Just when you thought things couldn’t get any worse for Google TV… Reports are coming in that Logitech has asked Gigabyte, the company that manufacturers the Revue hardware, to hold off on further production until Google comes up with a major software update or total revamping. The halt is slated to only last until after January, but this could be extended indefinitely depending on how long the software update takes Google.

If you missed the big New York Times story earlier this week, inside sources revealed that Google has asked manufacturers who were intending on formally announcing new Google TV devices at CES to hold off until they can improve the software. We cautioned readers not to get too concerned seeing as the word came from “inside sources” instead of a formal announcement by Google, but with this news about Logitech, I’m starting to think that this is definitely happening.

Things are certainly looking down for Google TV, but perhaps all of this will be a blessing. If Google can produce a more user friendly and enjoyable experience, and if manufacturers release some lower priced options, Google TV has a very good chance of being a success. However, if Google can not deliver on this one, I can honestly say I’m beginning to question the future of the platform. Your move, Google.

[via Engadget]