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Logitech Dumping GoogleTV - Bad Launch Cost the Company $100 Million

Discussion in 'Google TV News' started by dgstorm, Nov 11, 2011.

  1. dgstorm

    dgstorm Moderator Staff Member

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    [​IMG]

    Most days we get to bring you great news in technology, but some days we just have to share bad news too. Apparently, Logitech is discontinuing their GoogleTV product. Guerrino De Luca, The CEO of the company, didn't mince words when describing why. He called the 2010 launch of the Revue, "a mistake of implementation of a gigantic nature." He also indicated that "operational miscues" cost his company $100 Million, and indicated that the failure was due to a “a full scale launch with a beta product." He further added, "To make the long story short, we thought we had invented [sliced] bread and we just made them. [We made a commitment to] just build a lot because we expected everybody to line up for Christmas and buy these boxes [at] $300 [...] that was a big mistake." Here's a quote from the AndroidPolice article with a final summation,
    This is certainly horrible news for folks that bought the Logitech products.

    Source: AndroidPolice
     
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  2. misfit410

    misfit410 New Member

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    It being a beta product had nothing to do with it, it costing $300 had everything to do with it.
     
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    So will other potential hardware partners look at the Logitech Revue debacle and back away?

    Or perhaps Google will manufacture their own GTV box through Motorola?

    Or maybe Google pulls the plug on GTV altogether?

    If I only had a crystal ball. I love surfing the internet on my TV. And I prefer GTV to a home theater PC. So I hope that GTV will stay afloat.
     
  4. LadyAngler

    LadyAngler Moderator Staff Member

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    I think GTV was just a little ahead of it's time. I do agree that the software was initially beta-ish and that marketing was a total disaster. But internet TV is just getting started with better technology and implementation on the horizon.

    @Dgstorm-Even though you are the bearer of bad news...no need to kill the messenger LOL. I thank you for reporting the news.:)
     
    Last edited: Nov 11, 2011
  5. qdewolf

    qdewolf New Member

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    truthfully GoogleTv will really survive as a built in os and not as a separate box. seperate box makes it compete with PCs, tablets, and phones while built-in gives you web video with not external components and providers can build custom apps with advertising and ease of access.
     
  6. CatfishRivers

    CatfishRivers Well-Known Member

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    I'd rather have GTV on a separate box for several reason:

    1) LCD TVs are known to sometimes go bad within 2 to 3 years. The lifespan is much shorter than the good old days when TVs lasted 10 years or longer.

    2) Internal components for computers (the processors) change (improve) rapidly. I don't want to spend the extra money for a TV with GTV baked in - when the internal GTV hardware can become obsolete in 2 to 3 years.

    3) I prefer to buy a higher end TV with the custom features I want - then just connect a small box for my GTV. The Revue is very small, uses little power, very simple to connect. While the Sony TV is nice for some - TV wise it really lacks some of the higher end TV features.
     
  7. LadyAngler

    LadyAngler Moderator Staff Member

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    Very true. +1
     
  8. Ranchwest

    Ranchwest New Member

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    To take a product with incredible potential and train wreck it requires incompetence of the most prominent order. I'm done with Logitech -- I have zero confidence.

    What I liked about the Revue was that I could have a smart TV and the Revue. Logitech will regret their decision down the road.
     
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  9. alphawave7

    alphawave7 Moderator Staff Member

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    I'm not sure, based on this CEO's attitude, that there was success built in to their plans...he sounds like he said 'we just built the boxes thinking they'd sell for $300 a pop', without any foresight into marketing, support and growth. Yes, Google has some blame, but if I were a shareholder, I'd have to question this CEO's overall strategical and partnership capabilities going forward. He's now thrown an important (and huge) partner under the bus, and I'm wondering how many he expects now to be waiting at the next stop.
     
  10. MisterE

    MisterE New Member

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    Does this mean no Revue update ?
     
  11. eferz

    eferz Well-Known Member

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    To be fair, the original partnership for Google TV was under Gerald Quindlen's administration of Logitech until he "resigned" in July. By then, there was nothing coming out of Logitech as far as enhancements or bug fixes for the Revue. Had Gerald Quindlen invested the proper resources into maintaining and enhancing the Logitech Revue despite the failing of Google, I don't believe that the original price drops were necessary.

    Even after Guerrino De Luca stepped back onto the scene, there wasn't any activity demonstrated to their customers. The big news under his direction was the severe price drop that allowed the distributors and retailers to move boxes. It really was Logitech's continued mismanagement and negligence that caused the failure of the Revue to become a self-fulfilling prophecy.

    I am one of the early adopters and purchased the Logitech Revue the day it was for sale at Best Buy for the full MSRP of $299.99. Though I am frustrated with Logitech's mismanagement and negligence in handling the product, I'm not exactly surprised. Logitech is a company that has had the propensity to put out product with a limited attention span towards its continued development. In other words, they like to "set it and forget it" or in this case "sell it and forget it".

    My original hopes that their acquisition of Slim Devices in October 18th, 2006 would have change Logitech's attitude. Slim Devices runs on a completely different business attitude. They are a company that continues to develop and enhance their products to satisfy their customers which influences them to buy more. And under Logitech branding, the new Slimboxes products continued to excel in both hardware quality and continued support. I had hope that Logitech incorporated these ideals for the Logitech Revue. However, they decided to let Slim Devices exist as an autonomous business unit and the Logitech Revue was developed by a group more aligned with Logitech's past.

    Obviously, Google TV is a product that can't be produced with a "set it and forget it" attitude. In order for the success of the product is to come to fruition, it needs to treated as an ever evolving product. It needs to grow with its user bases and incorporate new technologies and trends. While part of this support could have been addressed by third-party development from the Android Market, it did not excuse Logitech from abandoning support while waiting for Google.

    Despite Logitech passing blame to Google to make the Android Market available or update to Android 3.1. They had plenty of time to address and resolve the issues that were inherit to their own value added software but they didn't. This would at least given the public the impression that the platform wasn't a dead end. That's what annoyed me the most. Not the cost of the unit, nor the price reductions they offered to others following the release.
     
    Last edited: Nov 11, 2011
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  12. sobriquet

    sobriquet New Member

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    I've been watching these boards, hopeful for at least 6 months. I have the Revue. I hate to ask, almost, but because of this news, should I sell the revue? I don't use it that much anymore, but I was extremely hopeful with the honeycomb launch coming out soon. This Logitech news doesn't sound good. I hopped on the bandwagon with the $300 bucks out of my pocket a couple of weeks after it came out.
     
  13. alphawave7

    alphawave7 Moderator Staff Member

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    Then is sounds like 'just desserts' (and I don't mean Ginger,Honey or Ice Cream) are being served @ Logitech in the form of $100M and upset customers. :|

    Yep, I went the Roku Soundbridge direction...in hindsight, Slim would dev better hardware and I lusted for it, but their server software seemed unpolished and you were tied to it (proprietary) when Roku was UPnP/DLNA compliant, at that time (it probably changed, I didn't keep up). The CEO who arranged that acquisition did it the right way, and I agree with you, they should have maintained that philosophy. Alas, SlimDevices may have been a rare fluke for Logitech. :|

    Well put. :)
     
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  14. alphawave7

    alphawave7 Moderator Staff Member

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    I wished we had solid answers for you...I'd wait for the update, and try it out, and see if it's something I could incoprorate into my regular TV experience. If not, sell..if so, ENJOY! :)
     
  15. Ranchwest

    Ranchwest New Member

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    The fact that Logitech had inadequate contractual assurances from Google is Logitech's fault.
     
  16. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Google made waves last year for its introduction of Google TV, new software intended to integrate the Internet with television content and revolutionize the TV-watching experience. One of the key hardware launch partners for Google TV was Logitech, which offered its "Revue" set-top box for Google TV at a price of $299.

    [​IMG]


    Google TV failed to catch on with consumers, and by July of this year Logitech hadslashed pricing on the Revue box to just $99 and taken an accounting charge on the loss related to the below-cost sale price. The lack of consumer interest in Google TV reminded observers of comments made by Steve Jobs just after Google's announcement of its Google TV project.Subsidized set-top boxes have squashed innovation because no one wants to pay for separate boxes...ask TiVo, Roku, us, Google in a few months. The set-top box needs to be torn up and redesigned to get people things they way they want them. And there's no go-to-market strategy for that. With the iPhone, and now the iPad, we could partner with carriers, but television is very balkanized...everything is local.

    Just two weeks ago, Google announced a significant update to the Google TV platform, but Logitech apparently has no interest in being burned twice, as The Verge reports that the company has sworn off any further Google TV work and acknowledged that the original effort was "a big mistake". According to Logitech CEO Guerrino De Luca:To make the long story short, we thought we had invented [sliced] bread and we just made them. [We made a commitment to] just build a lot because we expected everybody to line up for Christmas and buy these boxes [at] $300 [...] that was a big mistake.
    De Luca notes that Logitech "executed a full scale launch with a beta product", a decision that resulted in a $100 million loss for the company when consumer demand failed to meet expectations. De Luca admits that Google TV may yet have success in the market but that any such developments are some time away and will not involve Logitech.

    Google is of course only one of the companies seeking to change the way users interact with and experience television. Apple's current Apple TV set-top box primarily serves to integrate iTunes Store content with television sets, but the company is said to be working on a revolutionary new Siri-based interface for an actual television set product that could launch by 2013. And Sony has also acknowledged its efforts in the field, seeing the need to step up and address Apple's success so far with its iTunes ecosystem as well its future television plans.


    11-11-11

    Sources












     
  17. Mar

    Mar New Member

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    If it turns out to be improved by the Honeycomb update and there aren't any new units being produced, the value of yours will go up.

    If you sell now, you'll be lucky to get $100 for it. You'll be competing in the marketplace with Buy.com, which is selling refurbished Revues for $96 shipped.

    My recommendation would be to wait until after the first of the year to sell it.
     
  18. chicha29

    chicha29 New Member

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    GTV ahead of its time? I think that distinction belongs to WebTV.
     
  19. CatfishRivers

    CatfishRivers Well-Known Member

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    I agree.
     
  20. alphawave7

    alphawave7 Moderator Staff Member

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    LOL! The really pathetic thing? It really hasn't improved that much since what..1996? :eek:
     

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