Logitech Concedes Mistakes Marketing Google TV Hardware

Device maker puts part of the blame on incomplete Google TV software, but Logitech says it still sees promise in the product.

By Thomas Claburn InformationWeek
November 11, 2011 05:53 PM

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Computer peripheral maker Logitech said that the underwhelming launch of its Google TV set-top box, the Logitech Revue, cost the company dearly, laying some of the blame on Google's incomplete software.

In a conference call for Logitech's Analyst & Investor Day, CEO Guerrino De Luca attributed a loss of $100 million in operating income to several factors, most notably problems with Logitech's European distributors and its implementation and strategy for selling the Logitech Revue.

De Luca, who took over when former CEO Gerald Quindlen stepped down in July following weak fiscal first-quarter 2012 earnings, said that the Revue was launched with software that wasn't complete and wasn't tuned to what consumers wanted.

Part of what consumers wanted was a better deal: When Logitech reduced the price of the Reveue to $99 in July, it sold well.

"We expected everybody to line up for Christmas and buy these boxes at $300," said De Luca. "That was a big mistake." He also made it clear he still believes in Google TV as a concept, albeit one that needs further refinement.

[ Find out more about Google's plans for Google TV. Read Google TV Tries Again, Adds Android App Suppport. ]

Google maintains it is committed to Google TV, too. "Logitech has been a good partner in the early days of Google TV, and the feedback from Revue users has been very important for the design of the new version of Google TV announced two weeks ago," a Google spokesperson said via email. "We're excited about new partnerships with new chipset vendors and new hardware manufacturers, which we will announce at a later date. These partnerships will help power the next generation of Google TV devices in 2012."

Logitech might remain one of Google's partners, possibly as a maker of Google TV peripherals, but De Luca said the company has no plans to build another Revue box.