I have a logitech webcam. The Shield pics up the mic and video no problem. The only issue is hangouts produces no sound at all. It doesn't make the ringtone noise and when someone picks up it's silent. They can hear me through the mic and they can see my video. I downloaded a volume control app to see if the call volume was at 0 and it was 4/5 so that doesn't seem to be it either. I'm not sure what else it could be.
Wow cool idea
i have the mibox and don't think we have access to notifications so if the shield is like that, it would explain no ringing.
as for not hearing THEM, i dunno. have you tried more than 1 person to rule out that the problem is not with their mic?
Please post and update/edit if you're able to find a work-around. I had it working about a year ago, but after some updates to hangouts and the Shield, I have the exact same problems that you do. Occasionally mine will display the cam view sideways as well.
duo works ok too. At least on the Shield.
I've got a sony android TV and I would love to be able to use hangouts via a webcam on it.
Hey, the hangouts app is not optimized to work with android tv devices, that's why you have those issues.
Instead, I recommend you to use TELLYBEAN, it's a video calling app with support for webcams on the shield, it also converts your cellphone into a webcam in case you don't have a regular webcam or use another device without webcam support like the xiaomi mi box, so what are you waiting for?!!! go immediatelly to http://tellybean.com/ to learn more!!
Also it will notify of new calls with a notification at the bottom right of the screen even if you're watching a video on any app or playing a game and it's not obtrusive.
I've used it with my mi box along with my LG G3 as a webcam and it's very cool!, you don't need to create a separate account, you can signup with your existing google account; also you can install the app directly from the play store.
Ask on XDA , they probably be able to help better