Google TV has not exactly been a runaway hit, and that was apparent during Logitech's recent earnings call, when it said more people were returning the standalone Revue set-top box for Google TV than actually buying them.
As a result, Logitech will drop the price of the Revue from $249 to $99 sometime in the next quarter. The company did not provide an exact date for the price drop; it is still listed as $249 on the Logitech Web site.
"Sales of Logitech Revue were slightly negative during the quarter, as returns of the product were higher than the very modest sales," according to prepared remarks for yesterday's earnings call. Lowering the price, therefore, will "generate improved sales," Logitech said.
Logitech already dropped the price of the Revue from $299 in May, but that "had little impact on consumer acceptance," Logitech said. "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."
The $99 price point, however, could remove price as a barrier for buyers, Logitech said. "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."
Overall, Logitech's digital home section was its weakest performing category in the last quarter, down 53 percent. That includes the Revue and the Harmony remote, sales of which declined 48 percent. Logitech did not unveil any new remotes in the last quarter, however, and it also lost a sizeable sale when one of its customers cancelled an order.
Earlier this month, Universal Electronics filed suit against Logitech for infringing 17 patents that affect Logitech's Harmony remotes and the Logitech Revue.
In other news, Logitech also announced today that Gerald P. Quindlen has stepped down as the company's president and CEO; Chairman Guerrino De Luca has taken on the role of acting president and CEO, a role he held from 1998 to 2008.
Google TV is also accessible via the Sony NSX-32GT1 HDTV; the company also had its earnings call this week, but did not specifically discuss Google TV.
In a Wednesday report analyzing how people access Hulu and Netflix, Nielsen found that of the 12,000 people it surveyed, only 1 percent used both services on Google TV, though that was about the same as those who watched via Apple TV.
For more, see PCMag's full review of the Logitech Revue and the slideshow below, as well as Five Things Google Can Do to Save Google TV.
Update: The Logitech Revue price drop went into effect July 31. The company also issued a clarification to deny that more customers are returning Google TV Revue boxes than buying them.