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Saturday, November 12, 2011
Logitech Abandons Google TV Developing Plans

Logitech has pulled the plug on its Revue set-top boxes for Google TV, saying consumers just aren't ready for the device which merges television and the Internet.

"Google TV or the child of Google TV or the grandchild of Google TV will happen," said Guerrino De Luca, the chairman and acting chief executive of Logitech, in a call to analysts and investors on Wednesday.

"The integration of television and the Internet is inevitable," De Luca said. "But the idea that it would happen overnight in Christmas 2010 was very misguided.

"Google TV is a great concept," he said. "Google TV has the potential to completely disrupt the living room.

"Except that was not the case when we launched Logitech Revue."

Google and Logitech unveiled the Logitech Revue set-top box in October of last year. The device routes Web content to television sets and went on sale for $300 but the price was later cut to just $99 because of sluggish sales.

"Logitech Revue was launched with some - I wouldn't call it beta properly - but a software that was definitely not complete and not tuned to what the consumer wants in the living room," he said.

"To make a long story short, we thought we had invented sliced bread and we just made them," he said. "We built a lot because we expected everybody to line up for Christmas and buy this box at $300.

"That was a big mistake," De Luca said.

"Channel program changes in EMEA brought complexity and confused our customers," Mr. De Luca said. He added that Logitech has mistakenly executed a full scale launch with a beta product (Revue) a move that cost the company a lot. "Operational miscues in EMEA and Logitech Revue cost us well over $100M in operating profit," he added.

Google TV is also available on television sets manufactured by Sony and Blu-ray disc players. Korean LG is also reportedly working on a panel that utilizes Google TV according to a recent report from Bloomberg.

Google recently pushed out revisions to the Google TV software designed to streamline navigation, bring Android applications to Google TV users and improve the quality of search engine results on the system. Google also recently announced the first pornography channel for Google TV that features content from adult entertainment company Vivid Entertainment.

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