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Logitech shows Google TV's trouble as Revue drops to $99

updated 10:10 am EDT, Thu July 28, 2011

Logitech loses 45m on Revue price cut, CEO exits

Logitech revealed ongoing struggles for the current Google TV platform with a price drop on the Revue. The set-top box will now cost $99, half as much as before. The company also admitted it had to take a loss to support the price as $34 million of its $45 million operating loss accounted for the "cost of goods" from selling below plans.

Cutting the price was needed to "remove price as a barrier to broad customer acceptance," the company said. It revealed that there had been more returns than sales and implied many didn't believe the box was worth the higher prices.

The price slash, along with near-flat revenue year-over-year and poor performance in the EMEA (Europe, Middle East, and Africa) region, led CEO Gerald Quinlen to step down. Chairman and former chief Guerrino De Luca would return to the CEO position until Logitech found a more permanent replacement.

Google TV as a whole is currently in a limbo state while Google coordinates a revival with Android 3.1 and extra manufacturers in the fall. The platform as a whole has nonetheless fallen well short of expectations. In winter, the company shipped just $5 million in Revue hardware, less than a third of what it had anticipated. It ended up slashing the price of the Revue from $300 to $250 and later $200.

Neither Google nor partners Logitech and Sony have directly explained the lack of sales. Some of it may have come from Apple TV competition, where the $99 price made Google TV appear expensive. The platform's dependence on Flash-based web video also negated much of its advantage, as most major networks blocked it and left it with virtually no mainstream content.



By Electronista Staff
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Comments

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +6

    No clue = no chance

    These companies are used to just putting things out there and letting them sell. Apple has made it hard to meet the minimums that it sets. Apple tv $99 and Netflix for 12$ per month. Just a thought.

    en

  1. bigmig

    Fresh-Faced Recruit

    Joined: Jan 2004

    +1

    Drooooid!

  1. UmarOMC

    Fresh-Faced Recruit

    Joined: Aug 2001

    +1

    Mayyybe...

    ...if they didn't have crappy drivers for EVERYTHING... and if they supported the Mac more throughout their product line they could bring in a few extra millions. WE BUY STUFF!

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +5

    Clearing out that warehouse

    Wow. I thought Google cancelled the "current" Google TV. Oh wait. I guess they're still trying to get rid of unsold inventory.

    Hey Google: here's your 2-step plan:

    1. Sell as many as you can. Cheaply.

    2. Arson. Burn what you can't sell, get the insurance money.

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