Yesterday, Logitech hosted an Analyst and Investor Day and CEO Guerrino De Luca says that his company’s dance with Google TV was a big mistake and announced that it will stop producing the set top boxes.
It is estimated that Logitech spent about $100 million on the product and has little to show it.
For those who haven’t heard of it, Google TV is a software platform for set-top boxes and HDTVs based on the Android OS. And Logitech developed a separate box Logitech Revue that includes a companion box, which is an external device that connects to your TV though an HDMI port. One of the main advantages or applications with this device is video conferencing using a Logitech HD camera.
According to Seeking Alpha transcript, the company’s executive says the introduction of Logitech Revue with Google TV “cost us dearly” and when supplies are sold out, that will be it for the ill-fated venture.
He says –
The second mistake we made is Logitech Revue and it’s not a mistake of intention, it’s not a mistake of strategy, it’s a mistake of implementation of a gigantic nature. You are all familiar with Logitech Revue with the set top box that enables Google TV and every HDMI television. Google TV is a great concept, Google TV has the potential to completely disrupt living room, except that was not the case when we launched Logitech Revue. Logitech Revue was launched with some, I wouldn’t call it beta properly but a software that was not complete and not tuned to what the consumers want at the living room let alone all the issues with content delivery that the threat of the proceeds threat that Google posed us to other content providers generated.
To make the long story short, we thought we had invented slice bread and we just made them. We’ve made commitment we just build a lot because we expected everybody to line up for Christmas and buy these boxes $300 that was a big mistake. I would do it again, I would definitely want to have Google establish Google TV, but with a significantly smaller and more prudent approach. It’s always the case people will tend to overestimate the short-term and underestimate the long-term.
Google will need to do something soon to hit back Google TV, which is not expected to see much in the way of future Flash support. Even the recent Android 3.1 update to Google TV did not impress much apart from added app support. I doubt the future of complete Google TV concept with recent rumors flying that Apple will produce a complete TV solution in addition to their existing Apple TV devices.