Nexus 7 and other tablet users can now update to replace the Google Talk app
Following its announcement at Google I/O, the new Hangouts app from Google has had a bit of a rocky rollout to certain devices. Because it replaces a pre-installed system app (Google Talk), there are some complications with pushing an update that makes so many changes. When the app first hit the Play Store many users wouldn't get the option to update, especially if they were on tablets. Google has just pushed out an update today that should fix those issues, making the app compatible with tablets of all sizes.
The app's description has also been updated to note that it is aware of some compatibility issues, and that Hangouts is actually being rolled out over the course of several days. That would explain why some users that were eager to install saw some hiccups. Rest assured that as of now most devices (using Android 2.3 and up) should be good to go with an update from the Play Store directly.