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Logitech confirms no plans for new Google TV Revue after $100 million bath

post #1 of 51
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Logitech has confirmed that it has no plans to release a new Google TV-based Revue after implementation mistakes surrounding the device cost the company $100 million in operating profits.

Speaking at an Analyst and Investor Day earlier this week, Chief Executive Guerrino De Luca recounted the company's missteps that led to the Revue's failure, according to The Verge.

De Luca said Logitech had finally "brought closure to the Logitech Revue saga" with plans to clear out inventory this quarter. He candidly admitted that last year's holiday launch was "a mistake of implementation of a gigantic nature."

The executive laid some of the blame on Google for treating Google TV as beta software that could be iterated after launch. Logitech "executed a full scale launch with a beta product and it cost us dearly," De Luca said.

"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," the publication reported him as saying.

Logitech struggled to sell the Revue as reviewers dismissed the Google TV platform as a step "in the wrong direction." Journalist Walt Mossberg went so far as to label Google TV his second worst-reviewed product of 2010.



After "very modest sales" of the Revue early this year, the company decided to cut its losses and sell the device below cost for $99. At one point, returns from unhappy customers outweighed sales of the set-top box. Then CEO Gerald P. Quindlen was ousted because of a $29.6 million quarterly loss that the Revue was partly to blame for. All told, De Luca believes mistakes surrounding the Revue, combined with "operational miscues" in the EMEA region, cost Logitech "well over $100 million in operating profits."

Late last month, Google released an update to Google TV, adding improved support for the Android Market application store. The new version focused on making it more easy for users to "find something worth watching." The company first showed off Google TV last May.

On a more upbeat note, De Luca did express a belief that Google TV will eventually succeed at some point, but he said it would probably be a "grandchild" of the product. For now, Logitech is looking to learn from its mistakes and will sit "on the bench" while Google improves the platform.

The Revue's fate comes as another cautionary tale in the TV market. Apple co-founder Steve Jobs himself admitted that many others have tried and failed to find a viable market for set-top boxes.

"Ask Tivo, ask Replay TV, ask Roku, ask Vudu, ask us, ask Google in a few months," Jobs said last year before Google TV had even been released. According to him, the problem is that there are too many boxes, remotes, and individual interfaces involved in the living room.

"The only way that's ever going to change," Jobs said, "is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they're willing to pay for it. And right now there's no way to do that."

Recent indications suggest that Jobs found a way to do just that. He told his biographer during an interview that he had "cracked" the secret for an innovative interface on an Apple-branded television.

Apple has seen better than expected success with last year's $99 redesign of the Apple TV set-top box, but the device still remains a "hobby." However, according to one analyst, Apple's TV hobby could go "pro" if it incorporated iOS with Siri and FaceTime into a high-definition television set. Such a device could provide a significant new revenue stream for Apple, as the LCD TV market is expected to top $100 billion next year.
post #2 of 51
Surely there will other willing to waste money on GoogleTV.

Seriously though, has the new Google TV 2.0 made it any better.
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post #3 of 51
Haa hahaha! I'm enjoying watching Google TV crash and burn.

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post #4 of 51
Quote:
Originally Posted by solipsism View Post

Surely there will other willing to waste money on GoogleTV.

Seriously though, has the new Google TV 2.0 made it any better.

I have the sony google tv bluray player and I think it has. They added widgets to the home screen . Which is very usefull. I just have to press the pic in pic button on the google tv remote to bring up the weather, traffic and other widgets that i downloaded.

Also since the google tv has an hdmi in I can do things like play my police scanner app while say my tv show is on commercial.

Google tv 2.0 runs most android apps. All you have to do is install the apk file for that app. Now much better media players exist for google tv because it can run android apps. Makes it much much more usefull as a media player.
post #5 of 51
Quote:
Originally Posted by solipsism View Post

Surely there will other willing to waste money on GoogleTV.

Seriously though, has the new Google TV 2.0 made it any better.

Google can't make it better. It's not about hardware or software. The problem was content getting blocked by all the content providers and with the death of mobile flash it may make content even trickier google needs a deal with Comcast and the networks, which may be where Moro comes in, until then google tv is just a cool tv interface.
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post #6 of 51
Quote:
Originally Posted by solipsism View Post

Surely there will other willing to waste money on GoogleTV.

Seriously though, has the new Google TV 2.0 made it any better.

LG appears poised to step in with GoogleTV integrated into the TV itself rather than standalone.

http://www.businessweek.com/news/201...n-january.html
melior diabolus quem scies
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post #7 of 51
The problem here is Apple hasn't invented the solution that Google can copy.
post #8 of 51
Google is burning through relationships.
post #9 of 51
Quote:
Originally Posted by mdriftmeyer View Post

Google is burning through relationships.

on the other hand, it's nice to hear a CEO admit to a mistake ...
post #10 of 51
Quote:
Originally Posted by markbyrn View Post

The problem here is Apple hasn't invented the solution that Google can copy.

Sure it did: Apple TV. It's just that, as Steve put it, Apple TV is a hobby. Google thought they could take the ball and run with it, but I think Steve saw something they didn't. Now, it's come back to haunt them.
post #11 of 51
With none of the Google Android handset makers making any real money, I wonder when that house of cards will fall?
post #12 of 51
Quote:
Originally Posted by ruel24 View Post

Sure it did: Apple TV. It's just that, as Steve put it, Apple TV is a hobby. Google thought they could take the ball and run with it, but I think Steve saw something they didn't. Now, it's come back to haunt them.

the 2.0 software is a big leap foward. I think Logitech is giving up to soon. Google just has to make the google tv look like a pc when it talks to websites. Google is just too scared of the content creators to do it.
post #13 of 51
Quote:
Originally Posted by dbtinc View Post

on the other hand, it's nice to hear a CEO admit to a mistake ...

Admitting mistakes, instead of fixing them behind the scenes is not an impressive quality in a CEO.
post #14 of 51
Quote:
Originally Posted by markbyrn View Post

The problem here is Apple hasn't invented the solution that Google can copy.

Exactly.

They are also trying to "re-invent" the software part of the TV while increasing (or at least not reducing), the complexity of the hardware portion. And that never works. One could also argue that their software implementation is also more complex than plain old TV but they are specifically selling it as being simpler, so that's almost down to opinion.

To be easy to use the TV has to be simpler, Google is basically pushing this in the wrong direction. They just threw in everything including the kitchen sink and then gave us a 101 key keyboard for a remote.

They haven't really got a plan at all beyond that.
post #15 of 51
Quote:
Originally Posted by majortom1981 View Post

the 2.0 software is a big leap foward. I think Logitech is giving up to soon. Google just has to make the google tv look like a pc when it talks to websites. Google is just too scared of the content creators to do it.

Can't argue with your experience, but I question whether or not widgets on the home screen and Android apps will somehow make Google TV a success.

The problem is the mindset of someone watching television vs. someone using a computer or smart phone. People are willing to do some work to operate their computing devices; they want their TV experience to be completely frictionless. I don't think Google gets that, I think they think that if they can pack in enough "functionality" they'll have a winner.

And having Google TV identify itself as a PC browser isn't a matter of being "scared." Google knows that if they tried this they'd basically be going to war with the content providers. It would be in the content providers economic interests to thwart Google TV, and Google, at every opportunity. That's not what you want when you're trying to built out your mobile ecosystem.
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post #16 of 51
Google TV is failing because Google except for YouTube has no content unlike AppleTV- the iTunes vending machine. And unlike AppleTV is complicated (VENDING MACHINES USUALLY AREN'T). This is why Amazon NOT Google NOR Apple will succeed most because he who has the most content wins and Amazon will allow you to access other's via the web. I expect an Amazon TV very soon after the fire blazes through the holidaze.
post #17 of 51
Quote:
Originally Posted by sheff View Post

Google can't make it better. It's not about hardware or software. The problem was content getting blocked by all the content providers and with the death of mobile flash it may make content even trickier google needs a deal with Comcast and the networks, which may be where Moro comes in, until then google tv is just a cool tv interface.

Well, I don't know how "cool" it was, but, yes, the content is the problem and the broadcast industry rightly views Google as the parasite that it is.
post #18 of 51
Quote:
Originally Posted by ruel24 View Post

With none of the Google Android handset makers making any real money, I wonder when that house of cards will fall?

The only thing propping up that house of cards today is their successful search advertising business. Unravel that, and the rest will fall.

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post #19 of 51
Quote:
Originally Posted by majortom1981 View Post

the 2.0 software is a big leap foward. I think Logitech is giving up to soon. Google just has to make the google tv look like a pc when it talks to websites. Google is just too scared of the content creators to do it.

At what point after you've already lost $100 million would you give up?

Besides, Logitech hasn't given up. They're sitting the "bench" until there is a viable product there.
post #20 of 51
Looks like Larry Page learned nothing from Steve Jobs. Google is following Microsoft's playbook: shove a poorly conceived beta product out the door and hope it matures 3 versions later. Or "sell now, polish later." This will be Google's legacy.

I love it.

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post #21 of 51
Quote:
Originally Posted by ruel24 View Post

With none of the Google Android handset makers making any real money, I wonder when that house of cards will fall?

Actually BOTH Samsung and HTC continue to post record breaking profits in mobile quarter after quarter. How is that not making money? Sure, they're not making as much as apple, but no company thinking rationally EXPECTS TO (with the possible exception of Amazon). No company making android (or WP7) is built like apple is. And no, that doesn't make Apple's model the best either. Remember, Palm and Rim had/have a silo model and it failed for them

Android is what's propping up Samsung right now as they're taking losses in other divisions, and HTC is seeing 100%+ quarterly increases to revenue AND profit.

They're making a TON of money. Google's not making money on android but they give it away for free, so this isn't surprising. What they ARE making money on is advertising that they can serve to my Droid and your iphone. They're not making as much as they do with traditional search, but it's growing and they (rightly) know that the future is mobile. So instead of going all in now, they're using the profits from their existing business to invest in the future ventures (mobile and social)

Believe it or not, there's more than one right way to invest money. Apple has one way. HTC seems to have another, and google a third.

Also, it's rather sad that AI feels the need to post about this story and not about Samsung getting access to iOS source code by court order. One story is about Apple, the other isn't.
post #22 of 51
Quote:
Originally Posted by ruel24 View Post

Sure it did: Apple TV. It's just that, as Steve put it, Apple TV is a hobby. Google thought they could take the ball and run with it, but I think Steve saw something they didn't. Now, it's come back to haunt them.

Apple isn't losing money on the Apple TV is it? Selling them for $99, you'd think something gotta give. At best they are selling them at break-even.

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post #23 of 51
Quote:
Originally Posted by Aizmov View Post

Apple isn't losing money on the Apple TV is it? Selling them for $99, you'd think something gotta give. At best they are selling them at break-even.

Hobbies cost money. Otherwise, it'd be a business.

You're welcome.

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post #24 of 51
Quote:
Originally Posted by AppleInsider View Post

He candidly admitted that last year's holiday launch was "a mistake of implementation of a gigantic nature."


I would not be quite so polite if I were to characterize this blunder.
post #25 of 51
Quote:
Originally Posted by Aizmov View Post

Apple isn't losing money on the Apple TV is it? Selling them for $99, you'd think something gotta give. At best they are selling them at break-even.

What is your reasoning for Apple, at best, breaking even the AppleTV?

THe 8GB iPod Touch is $199. Remove the battery, the Retina Display, glass, and all need to make it very thin and durable to through around in your pocket or purse and you could have an iOS device that is selling for $99 for a profit. Granted, not at the same profit their other iOS-based products have, but still well about the break even line.




Quote:
Originally Posted by ConradJoe View Post

I would not be quite so polite if I were to characterize this blunder.

I guess I understand when posters here expect Apple to release a major new product in late November or December, but I can't imagine why Logitech would have thought it was a good move.
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post #26 of 51
Quote:
Originally Posted by ruel24 View Post

With none of the Google Android handset makers making any real money, I wonder when that house of cards will fall?

Actually, Samsung is making good money off Android. However, it is to be seen how long that lasts. First it was Motorola who was making money off Android, and then HTC replaced them, and Moto fell back into making losses. Now Samsung has replaced HTC, and HTC's profits are also dropping with Samsung's rise.

It seems like there is room for only 1 or maybe 2 handset makers to make decent money off Android at a time.
post #27 of 51
Quote:
Originally Posted by mdriftmeyer View Post

Admitting mistakes, instead of fixing them behind the scenes is not an impressive quality in a CEO.

My view is that the CEO admitted to, and fixed the mistake of, Logitech's imprudent reliance on Google. Google is responsible for fixing the market-driven tech issues.

Whether intentionally, or inadvertently, (I suspect the former) the CEO has publicly applied pressure on Google; possibly because "behind the scenes" fix discussions bore little fruit. (reminiscent of Apple's issues over Flash with Adobe)
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post #28 of 51
Pre-mature Product-U-LA-tion.

Launch a product without thinking it through can cost you.
post #29 of 51
Quote:
Originally Posted by Gatorguy View Post

LG appears poised to step in with GoogleTV integrated into the TV itself rather than standalone.

http://www.businessweek.com/news/201...n-january.html

I don't think the SOLUTION to the Google TV is a Google TV that has a TV that no longer works because the Google TV can't play that content you wanted to watch from that vendor.

Many people still can't change the time on their VCR -- and the VCR is almost extinct.


Jobs was right; until you can get all the gadgets out of the living room, and have an interface that doesn't require more fiddling around with gadgets -- the Smart TV is a wash.

However, we probably only have to wait until next year when Apple solves it with Siri, or some other AI type device.


>> The OTHER part of the problem will be content, but that only takes a company NOT trying to force their own "shop" (like iTunes only) onto the customer. Make it provider neutral or it won't be accepted.


>> And Jobs is probably horrified as well as pleased that Apple would take over the living room. He probably hates the idea of a new generation of couch potatoes because they can now ask Siri; "Get me everything with naked womin that appears this week, but I don't have to pay for..."
post #30 of 51
Quote:
Originally Posted by Eriamjh View Post

Pre-mature Product-U-LA-tion.

Launch a product without thinking it through can cost you.



This is like the AUTOMATIC thinking that you "couldn't go broke selling things that worked with Microsoft" -- which was preceded by "you can't go broke selling IBM." Now it's Google.

I'm sure that eventually, "You can't go broke selling things that work with the iOS platform" will be the norm, and THAT is the time you sell you shares of Apple.
post #31 of 51
MS would never give up. Even of its losses in the billions.
post #32 of 51
Quote:
Originally Posted by majortom1981 View Post

IAlso since the google tv has an hdmi in I can do things like play my police scanner app while say my tv show is on commercial.

Having multiple HDMI in ports on an AppleTV was an idea I had to make the TV more connected and put the AppleTV at the front of your TV viewing, not an an after thought. This would make the TV just a dumb monitor that you never adjust for anything. Much like an A/V receiver is for home theaters, but with an AppleTV OS built in.

Outside of Apple doing that Apple will need to have agreements with the content owners if they want to make any real headway. They've been struggling with that since at least 2006 when first preview demoed the 'iTV'.
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post #33 of 51
Quote:
Originally Posted by Menno View Post

Android is what's propping up Samsung right now as they're taking losses in other divisions, and HTC is seeing 100%+ quarterly increases to revenue AND profit.

Just to be clear, that is 100% YoY and not QoQ ad implied.
post #34 of 51
Quote:
Originally Posted by solipsism View Post

Having multiple HDMI in ports on an AppleTV was an idea I had to make the TV more connected and put the AppleTV at the front of your TV viewing, not an an after thought. This would make the TV just a dumb monitor that you never adjust for anything. Much like an A/V receiver is for home theaters, but with an AppleTV OS built in.

Outside of Apple doing that Apple will need to have agreements with the content owners if they want to make any real headway. They've been struggling with that since at least 2006 when first preview demoed the 'iTV'.

exactly. an HDMI pass-thru for your CATV/Sat source is essential for ATV 3. with apps fron the cableco (eg, the Xfinity and TiVo apps) integated into a totally new Remote app, like magazine apps are into the Newsstand app, that enable you to control those boxes from your iDevice.

the Remote app now is awful - it's just a trackpad. it needs a total makeover.

and Apple also needs to get rid of the ATV IR remote completely. force all ATV 3 users to use their iDevice - and take advantage of AirPlay/app Mirroring too.

I know many here and elsewhere keep emphasizing "content, content, content." but it is clear now the major content owners WILL NEVER LET GO OF IT and allow Apple or Google or anyone to sell it directly to consumers at any decent price. they will however put 'access' apps for it on iOS that they control and price. and all the independent content creators - all those other cable channels - WILL take advantage of iOS to distribute their content via their own apps too.

the whole goal is to never need to pick up any remote control at all. just your iThing. which, btw, you can talk to. and no split screens or PIP on your HDTV. instead you have a second UI and extra content screen to use that you hold in your hand.
post #35 of 51
Quote:
Originally Posted by Alfiejr View Post

exactly. an HDMI pass-thru for your CATV/Sat source is essential for ATV 3. with apps fron the cableco (eg, the Xfinity and TiVo apps) integated into a totally new Remote app, like magazine apps are into the Newsstand app, that enable you to control those boxes from your iDevice.

the Remote app now is awful - it's just a trackpad. it needs a total makeover.

and Apple also needs to get rid of the ATV IR remote completely. force all ATV 3 users to use their iDevice - and take advantage of AirPlay/app Mirroring too.

I know many here and elsewhere keep emphasizing "content, content, content." but it is clear now the major content owners WILL NEVER LET GO OF IT and allow Apple or Google or anyone to sell it directly to consumers at any decent price. they will however put 'access' apps for it on iOS that they control and price. and all the independent content creators - all those other cable channels - WILL take advantage of iOS to distribute their content via their own apps too.

the whole goal is to never need to pick up any remote control at all. just your iThing. which, btw, you can talk too. and no split screens or PIP on your HDTV. instead you have a second UI and extra content screen to use that you hold in your hand.

Does BlueTooth 4.0 offer up an adequate IR replacement that is fast enough to initiate from a sleep state in the remote and power efficient enough that it doesn't become inconvenient by requiring frequent charging or battery replacements?
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post #36 of 51
The new Apple TV just works. Apple has built a reputation and has been able to sell the Apple TV because of it. Other companies they never think the way Apple has. They put deadlines on the product and then hire people who think corporate minded. Really this is nothing but a joke to Apple.
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post #37 of 51
Is it too soon to claim there's a Google reality distortion field nowdays?
post #38 of 51
Quote:
Originally Posted by Esoom View Post

Is it too soon to claim there's a Google reality distortion field nowdays?

I think that being able to claim that a Reality Distortion Field exists for an entity is contingent on the fact that the RDF actually works.

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post #39 of 51
Google's middle name is beta. I think if the Logitech CEO did his homework on this deal he would have predicted this.
post #40 of 51
The reason iOS and Apple as a whole are successful is that they control the whole eco-system. Apple controls the relationship with the owners of the phones, the computers, and the i...'s, this is huge regarding customer satisfaction and updates. As a customer you want to stay with an Apple product because "it just works" and when there is an issue there will be an update that you WILL get from Apple. Windows phones didn't get updates because the telco's were the gatekeeper and wouldn't provide them same issue w/Android. This creates dissatisfaction until you "have" to upgrade from frustration which may or may not be another Windows or Android device and may or may not be from the same manufacturer. This is exact the opposite of the Apple philosophy where you want to upgrade to a new Apple product (brand loyalty that is earned). If you look into the numbers of "upgraders" you will find that it extremely rare that an iPhone owner switches to Android but that the opposite can not be said.
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