I always had my doubt about Google’s first TV initative, the UI was basic, the system was complex and I didn’t think it would sell that well. Google may get it get it right in the future but its to late for the Logitech Revue. The Revue actual had more items returned than sold and was what Logitech describe as “very weak quarter” for the box. Logitech have cut the price from $249 to $99, whether its enough to stimulate sales I am not sure but Google do have updates on the way including an app store.
LOGITECH REVUE PRICE REDUCTION Q1 was a very weak quarter for sales of Logitech Revue. While we lowered the retail price to $249 during the quarter, it had little impact on consumer acceptance. Our enthusiasm for the promise of the Google TV platform has always been focused on the opportunity to develop another large installed base for our products over time. Up until now, the installed base has remained relatively small. Therefore, with the goal of accelerating adoption of the Google TV platform, we have elected to reduce the retail price from $249 to $99 during Q2.
We believe that this action will remove price as a meaningful barrier to broad consumer acceptance. We expect the lower price, particularly when combined with the upcoming enhancements to the Google TV platform, including the availability of an apps marketplace, should provide the consumer with a compelling value proposition.
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