Logitech says was too bullish on Google TV

BARCELONA Fri Nov 18, 2011 1:58pm EST

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BARCELONA (Reuters) - Logitech, which lost tens of millions of dollars building set-top boxes for Google TV, would back the project again, but would be much more cautious, its chief executive said.

Google TV, which comes built in on certain Sony Corp TV models and on Logitech set-top boxes, allows consumers to access online videos and websites on their TVs, as well as to play specialized apps such as video games.

Google does not disclose how many users it has for Google TV, which was launched with great fanfare last year, but some analysts say that version 1.0 of the product was a flop.

"Google TV is a great concept, but the product was not mature at the launch," Logitech CEO Guerrino de Luca told Reuters in an interview on the sidelines of an investor conference in Barcelona.

"Embracing the platform was a good idea," De Luca said, adding the company had, however, overinvested in making set-top boxes for the platform, causing it major losses.

He said set-top boxes for Google TV, coupled with a failed revamp of European retail operations, in total cost the company around $100 million.

"On the bottom line they are of a similar size," he said.

Last month Google said it was making another push to bring its Web savvy to television sets, hoping to tap into a vast new market, despite consumers' lukewarm reaction to one of its initial offerings.

(Reporting By Tarmo Virki; Editing by Will Waterman)

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Comments (3)
Eideard wrote:
There was really one single motivator for over-buying the Google TV – and that was/is Logitech’s hatred of Apple.

Nov 18, 2011 10:52am EST  --  Report as abuse
SilentBoy741 wrote:
You can bet that if the number of users was huge, Google would have disclosed it. So that tells you something.

Nov 18, 2011 3:11pm EST  --  Report as abuse
luism86 wrote:
This is the difference between Apple and the competition. You wait forever with Apple to release a product but you get a full though out product. No BETA or copy cat product. This is the main reason everyone else is a follower not a leader. For any company to attract new customers, they literally have to think outside the box for once.

Nov 18, 2011 5:46pm EST  --  Report as abuse
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