Google TV (NASDAQ:GOOG) software, released last year, was intended as a way to bring Web content and features to TV. Considering the evolution of the Internet and its increasing value as a distributor of media and entertainment content, Google TV must have sounded like a good idea.
Hot Feature: The Future of Streaming Video.
Google partnered with Logitech International (NASDAQ:LOGI) to make the Google TV set-top box called Revue, which had a starting price of $299. But it turned out consumers didn’t want it that much, and Logitech soon cut the cost to $249 to boost sales. But during the second quarter, Revue’s revenue was negative, with more people returning their units than buying them. So in order to provide an extra incentive to consumers in order to save what could otherwise be a very short-lived venture, Logitech will again be cutting Revue’s price, this time down to $99.
While Logitech acknowledges that they misjudged demand when pricing the product, they’re placing some of the blame on Google (NASDAQ:GOOG) for having not fully delivered on its promises. Responding to the accusation, a Google spokeswoman said, “It’s still early days for smart TVs and we’re investing to continue to bring innovation and progress for our partners and users.” She also announced that the company would be releasing an updated version of Google TV later this year. That’s good news if the company plans to compete with Apple TV (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and cable companies racing to merge the web with your television experience.