WEBVTT - Flops, Failures and Falls from Grace

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<v Speaker 1>Welcome to Tech Stuff, a production from I Heart Radio.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I'm your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer with I Heart Radio

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<v Speaker 1>and a love of all things tech, and one of

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<v Speaker 1>my favorite topics in tech centers on projects that just

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<v Speaker 1>didn't work out. Not to be clear, this isn't all

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<v Speaker 1>about schadenfreude, which, for those who don't know, is a

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<v Speaker 1>German word that essentially means the feeling of pleasure you

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<v Speaker 1>get when you see someone else fail. Now there's a

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<v Speaker 1>little bit of that going on sometimes, but really, to me,

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<v Speaker 1>the interesting thing about failure is that you can learn

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<v Speaker 1>from it. By learning what doesn't work, you can refine

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<v Speaker 1>your approach and find ways that do work. Or sometimes

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<v Speaker 1>you figure out the thing you wanted to do isn't

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<v Speaker 1>necessarily possible. So in this episode, I'm going to look

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<v Speaker 1>at some projects, gadgets and campaigns that didn't succeed for

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<v Speaker 1>various reasons. Because for every iPhone success story, there's a

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<v Speaker 1>massive flop that hardly anyone remembers today. Long time listeners

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<v Speaker 1>know that once upon a time, I very confidently predicted

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<v Speaker 1>that Apple's iPad would be a failure. Obviously I was

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<v Speaker 1>as wrong as wrong can be about that. So there's

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<v Speaker 1>our first fail. It was mine. But at the time

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<v Speaker 1>I felt pretty sure of myself. After all, no one

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<v Speaker 1>had really made a successful consumer tablet computer at that point.

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<v Speaker 1>There were tablets on the market, or slate computers they

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<v Speaker 1>were sometimes called, but for the most part, the only

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<v Speaker 1>place you found them were in certain occupations or specific

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<v Speaker 1>use cases. No one had really hit it big with

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<v Speaker 1>a general use tablet computer. Q Michael Arrington, co founder

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<v Speaker 1>of tech Crunch, he wanted to create a useful tablet

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<v Speaker 1>or slate computer. He also wanted it to be affordable.

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<v Speaker 1>He really wanted to aim for a two dollar price tag,

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<v Speaker 1>which was pretty darn ambitious really. He and his team

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<v Speaker 1>got started in two thousand and eight on the concept,

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<v Speaker 1>and they were able to build a couple of prototypes,

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<v Speaker 1>and it turned out that making a tablet was really hard,

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<v Speaker 1>particularly getting the capacity of touchscreen just right so that

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<v Speaker 1>there was a good input method for the user. I mean,

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<v Speaker 1>obviously there's no keyboard or mouse. You have to have

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<v Speaker 1>a way to interact with the device. And after those

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<v Speaker 1>first couple of prototypes, Errington's team partnered unofficially it turns

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<v Speaker 1>out with a company called Fusion Garage, and that really

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<v Speaker 1>ended up being a bad choice. Now. At first, everything

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<v Speaker 1>was going okay, but then on November two thousand nine,

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<v Speaker 1>Errington got a message from the CEO of Fusion Garage,

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<v Speaker 1>and the message said that Fusion Garages shareholders felt that

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<v Speaker 1>Errington's team was superfluous and that their company, Fusion Garage,

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<v Speaker 1>should just move forward with this device on their own,

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<v Speaker 1>cutting Errington out entirely to make matters worse. This was

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<v Speaker 1>just days before Errington was going to show off the

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<v Speaker 1>working prototype at a live event. He had already talked

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<v Speaker 1>about the crunch Pad publicly and people were eager to

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<v Speaker 1>see what it was that his team had been working on.

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<v Speaker 1>It was supposed to be the launch of the product,

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<v Speaker 1>and the plan was to even take pre orders for

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<v Speaker 1>up to a thousand units, and boom, Errington gets this message. Now,

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<v Speaker 1>as you can imagine, that didn't go down well. Fusion

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<v Speaker 1>Garage announced that the tablet, now renamed Juju that's j

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<v Speaker 1>o O j o O, would go on pre sale

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<v Speaker 1>in December for five hundred dollars, more than twice the

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<v Speaker 1>price Errington wanted to aim for when he had started

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<v Speaker 1>working on the project. A couple of years earlier, Errington

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<v Speaker 1>sued Fusion Garage, but because there was no formal contract

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<v Speaker 1>about their agreement, a judge dismissed a lot of the

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<v Speaker 1>arguments that Errington's legal team made against Fusion Garage. But

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<v Speaker 1>it seemed like the whole thing would end up being

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<v Speaker 1>a moot point anyway, because during the court case, it

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<v Speaker 1>was revealed that the Juju device had only received ninety

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<v Speaker 1>that's nine zero pre orders before it finally began shipping

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<v Speaker 1>in March of The tablet was absolutely hamstrung by the

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<v Speaker 1>Apple iPad, which we first learned about in January and

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<v Speaker 1>which began shipping in April of that year. So a

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<v Speaker 1>lot of people were saying, well, if I want a tablet,

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<v Speaker 1>I'm just gonna wait for the iPad. While I don't

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<v Speaker 1>know how those court cases ultimately played out, I couldn't

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<v Speaker 1>find that when I was researching this episode, I can

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<v Speaker 1>tell you that the Juju Tablet didn't last very long.

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<v Speaker 1>Fusion Garage decided to stop supporting it before ten was

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<v Speaker 1>even over, So we're only talking about half a year

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<v Speaker 1>from the point it launched to the point that Fusion

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<v Speaker 1>Garage stopped supporting it, and Fusion Garage itself didn't last

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<v Speaker 1>a whole lot longer. That company went into liquidation in

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<v Speaker 1>twenty twelve. I think there's some real lessons to learn

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<v Speaker 1>from that story. One is that making a particular form

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<v Speaker 1>factor consumer friendly is really hard, and while Apple made

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<v Speaker 1>it work, countless other companies have made slates or tablets

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<v Speaker 1>that saw very little traction in the general tech consumer

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<v Speaker 1>market before and since the introduction of the iPad. Another

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<v Speaker 1>is that you always get those business agreements in writing always. Now,

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<v Speaker 1>let's take a leap, In fact, let's call it a

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<v Speaker 1>Magic Leap, a decade ahead. The company Magic Leap started

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<v Speaker 1>in two though it kept a pretty low profile for

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<v Speaker 1>the first few years. We would later learn that the

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<v Speaker 1>primary focus of the company was the development of an

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<v Speaker 1>augmented reality headset. Now, just in case you're not familiar

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<v Speaker 1>with that, term, augmented reality or a R refers to

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<v Speaker 1>using digital information to enhance a real environment in some way.

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<v Speaker 1>Typically we experience this digital enhancement through a screen or

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<v Speaker 1>a headset, though you could do it with audio like

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<v Speaker 1>with headphones, or even other methods of sensory input. But

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<v Speaker 1>the technology interprets what we are focusing on within our

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<v Speaker 1>environment and then enhances our experience in some way. So

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<v Speaker 1>a super simple implementation are the various filters on phone

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<v Speaker 1>apps that let you, you know, take pictures of yourself

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<v Speaker 1>with bunny ears, or you can turn into a dragon

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<v Speaker 1>or whatever. Magic Leap was working on a headset that

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<v Speaker 1>could overlay digital information on your view of the world,

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<v Speaker 1>and the applications for this technology are practically limitless, from

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<v Speaker 1>entertainment to productivity. And obviously there are other examples of

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<v Speaker 1>this technology on the market, such as micros offs hollow lens,

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<v Speaker 1>but Magic Leap had a sense of mystery and well

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<v Speaker 1>magic about it, and it attracted a lot of attention

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<v Speaker 1>and a lot of investors, who poured around two billion

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<v Speaker 1>dollars in the company years before it had a product

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<v Speaker 1>to even show off. In two thousand eighteen, Magic Leap

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<v Speaker 1>introduced its first headset, fittingly named the Magic Leap. One

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<v Speaker 1>had a steep price tag two thousand, three hundred dollars

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<v Speaker 1>per headset. The CEO's original hope was that the company

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<v Speaker 1>would sell one million headsets in its first year, but

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<v Speaker 1>in the official company projections that got reduced down by

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<v Speaker 1>an order of magnitude, down to one thousand units, but

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<v Speaker 1>reality was far more harsh. After the first six months,

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<v Speaker 1>the company had only sold around six thousand units, according

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<v Speaker 1>to Alex Heath of The Information. The Information Is a website.

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<v Speaker 1>By the way, Addie Robertson of The Verge got to

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<v Speaker 1>try out the Magic Leap and fell that the experience

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<v Speaker 1>was interesting but fell far short of expectations. Given all

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<v Speaker 1>the hype around the Magic Leap one for years, the

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<v Speaker 1>tech world had been teased with hints at what was

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<v Speaker 1>to come and lots of conceptual videos that really made

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<v Speaker 1>it seem phenomenal, and the anticipation was really high. But

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<v Speaker 1>by the time it finally came out, after the hollow

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<v Speaker 1>lens had already been demonstrated, the Magic Leap one just

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<v Speaker 1>didn't quite live up to its reputation. Magic Leap chose

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<v Speaker 1>to pivot towards catering to enterprise clients, meaning instead of

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<v Speaker 1>offering a consumer electronics product, the company was aiming at

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<v Speaker 1>something for other businesses to purchase, and the rocky launch

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<v Speaker 1>had some pretty big consequences, including massive layoffs like a

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<v Speaker 1>thousand people laid off at the company and the CEO

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<v Speaker 1>and founder of the company stepping down. Today, Magic Leap

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<v Speaker 1>is planning the release of their second headset. This one

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<v Speaker 1>is lighter, and the company says it will have a

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<v Speaker 1>larger few old of view, but there aren't many details

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<v Speaker 1>beyond some general statements about the physical specs of the

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<v Speaker 1>the high tech specs. It may be that the experience

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<v Speaker 1>of using them will match more closely with the perception

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<v Speaker 1>of what it was going to be like, but we'll

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<v Speaker 1>have to see. I personally get the feeling that a

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<v Speaker 1>R is kind of going through what VR went through

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<v Speaker 1>back in the nineteen nineties, which is when the actual

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<v Speaker 1>experience of VR ended up being a pale imitation of

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<v Speaker 1>what everyone thought it would be and then interest dropped

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<v Speaker 1>like like a stone as a result. But I hope

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<v Speaker 1>that they're successful. I would actually love to see more

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<v Speaker 1>innovation in the a R space. So while I have reservations,

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<v Speaker 1>my hope is that they make it work. Meanwhile, Magically

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<v Speaker 1>has some other challenges. It seems like a lot of

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<v Speaker 1>the planned partnerships that the company had with other big

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<v Speaker 1>companies have sort of stalled out, and in Florida, the

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<v Speaker 1>company has asked for an extension on a promise it

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<v Speaker 1>made to the Broward County Commission. Magic Leap had promised

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<v Speaker 1>to create seven jobs with an average salary of one

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<v Speaker 1>thousand dollars per year, and in return they got some

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<v Speaker 1>pretty sweet incentives to set up shop in Florida. But

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<v Speaker 1>due to the fallout of the Magic Leap one release

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<v Speaker 1>not going as planned and the subsequent layoffs and the

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<v Speaker 1>pandemic on top of everything else, the company needs more

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<v Speaker 1>time to make good on that promise. I'll keep my

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<v Speaker 1>eye on Magic Leap and I'll continue to hope that

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<v Speaker 1>the team is able to rebound. Let us now turn

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<v Speaker 1>our sights to Microsoft. Now, Microsoft has tons of candidates

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<v Speaker 1>I could choose from when it comes to failures. Years ago,

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<v Speaker 1>I did an episode on Microsoft Bob, arguably one of

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<v Speaker 1>the biggest flops in tech history. Also, it's the flop

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<v Speaker 1>that introduced the world to comic Sands. I could also

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<v Speaker 1>talk about Windows Vista or Windows eight, but instead let's

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<v Speaker 1>chat about the Zoom. The Zoon wasly a suite of

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<v Speaker 1>technologies centered around a portable media player called the Zoon.

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<v Speaker 1>It was kind of Microsoft's answer to Apple's iPod. Microsoft

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<v Speaker 1>launched the Zoo on November two thousand six. The original

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<v Speaker 1>Zoom device had thirty gigabytes of storage space built in

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<v Speaker 1>FM radio and a three inch screen, but two thousand

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<v Speaker 1>six was pretty late to get into the portable media

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<v Speaker 1>player game. Apple had introduced the first iPod in two

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<v Speaker 1>thousand one and had worked to create an ecosystem with iTunes.

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<v Speaker 1>An ecosystem I should add that worked okay if you

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<v Speaker 1>were on a Mac, but I maintained it was a

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<v Speaker 1>nightmare to use it on PC, at least in my experience.

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<v Speaker 1>Microsoft was trying to make up for some lost time

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<v Speaker 1>and lost ground, and it didn't go so well. When

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<v Speaker 1>it came to market share, the Zoon was never able

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<v Speaker 1>to get as high as ten percent of the whole market.

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<v Speaker 1>It was always in the single digits. The company stuck

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<v Speaker 1>with the product line for a file, including the introduction

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<v Speaker 1>of a touch screen Zoom in two thousand nine that

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<v Speaker 1>was the Zoom hd UH. Some first generation Zoom thirties failed.

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<v Speaker 1>They froze entirely. Microsoft later said that the reason for

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<v Speaker 1>the Zoom's freezing was because of a third party internal

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<v Speaker 1>clock that failed to account for a leap year the

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<v Speaker 1>host pesky clocks. One capability the Zoom players had that

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<v Speaker 1>got a lot of snark was that you could wirelessly

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<v Speaker 1>share a song from your library with a friend who

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<v Speaker 1>also happened to have a Zoom. Also, you could actually

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<v Speaker 1>send that song to any nearby Zoom device. If your

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<v Speaker 1>Zoom detected another Zoom within thirty feet, you could send

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<v Speaker 1>a song you know, or other piece of media like

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<v Speaker 1>a podcast their way, and the recipient would get a

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<v Speaker 1>little notification and they could choose to either accept or

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<v Speaker 1>deny that offer, and then if they accepted it, they

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<v Speaker 1>would have three days to you know, listen to the

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<v Speaker 1>media before it disappeared from their vice, and they also

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<v Speaker 1>had a limit of listening to it three times. And

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<v Speaker 1>hearing that you might think, well, was there to be

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<v Speaker 1>snarky about. Well, the snark wasn't about the capability, It

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<v Speaker 1>was the name that Microsoft gave to it. Microsoft called

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<v Speaker 1>it squirting. The lackluster sales of the Zoom ultimately led

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<v Speaker 1>to Microsoft deciding to stop development and production on the

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<v Speaker 1>Zoo in the company continued to support the Zoom software service,

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<v Speaker 1>which allowed you know, existing Zoom users to listen to

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<v Speaker 1>songs they had purchased through Microsoft and Stuff, or they

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<v Speaker 1>could listen to a catalog of streaming music for a

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<v Speaker 1>monthly fee, but all of that got shut down in

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<v Speaker 1>two thousand fifteen and while Microsoft would you know, move

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<v Speaker 1>users over from their service to a new service, the

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<v Speaker 1>Groove Music Service, not all the copyright licenses made that shift.

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<v Speaker 1>The the library of the zooon uh universe was different

0:13:58.280 --> 0:14:02.800
<v Speaker 1>from the Groove universe, so that wasn't great. It meant

0:14:02.800 --> 0:14:05.439
<v Speaker 1>a lot of Zoom users found themselves unable to listen

0:14:05.440 --> 0:14:09.360
<v Speaker 1>to music that they had previously purchased on the Zoom platform.

0:14:09.400 --> 0:14:12.000
<v Speaker 1>And it was also a reminder that the media model

0:14:12.080 --> 0:14:15.119
<v Speaker 1>we have these days where we don't really have copies

0:14:15.559 --> 0:14:21.080
<v Speaker 1>of media. Typically we normally access the media through streaming services.

0:14:21.480 --> 0:14:23.600
<v Speaker 1>That means that there can come a time where we

0:14:23.680 --> 0:14:27.240
<v Speaker 1>can't access that stuff anymore because of licensing issues that

0:14:27.280 --> 0:14:31.720
<v Speaker 1>are on the back end. So bye bye Zooon. We

0:14:31.880 --> 0:14:35.960
<v Speaker 1>hardly squirted d. On a related note, there was the Panto,

0:14:36.680 --> 0:14:40.760
<v Speaker 1>famous for its association with musician Neil Young. The bitch

0:14:40.800 --> 0:14:44.280
<v Speaker 1>for Panto is pretty simple. Most digital music we encounter

0:14:44.360 --> 0:14:48.040
<v Speaker 1>these days has been compressed, and in that compression process

0:14:48.240 --> 0:14:52.760
<v Speaker 1>you can lose fidelity, the quality of the audio, the

0:14:52.920 --> 0:14:56.280
<v Speaker 1>dynamic range of the music. That's the range between the

0:14:56.400 --> 0:15:00.520
<v Speaker 1>softest and the loudest bits of a piece that gets reduced.

0:15:00.800 --> 0:15:04.520
<v Speaker 1>So it makes the music more flat right, The softer

0:15:04.640 --> 0:15:07.280
<v Speaker 1>parts get boosted a little bit in volume, the loudest

0:15:07.320 --> 0:15:10.520
<v Speaker 1>parts get reduced in volume, and you have less variation.

0:15:11.200 --> 0:15:15.480
<v Speaker 1>You might also lose some harmonics because compression algorithms typically

0:15:15.520 --> 0:15:19.320
<v Speaker 1>determine if a sound is within the range of human hearing,

0:15:19.360 --> 0:15:21.840
<v Speaker 1>and if it figures that the sound is outside the

0:15:21.960 --> 0:15:25.680
<v Speaker 1>range of human hearing, it drops that information, thinking that's

0:15:26.120 --> 0:15:29.440
<v Speaker 1>not really important, but that can help shape the sound

0:15:29.520 --> 0:15:33.400
<v Speaker 1>a little bit, so that's also an issue. The Panto

0:15:33.720 --> 0:15:37.560
<v Speaker 1>would let you listen to uncompressed digital music. Ideally, you

0:15:37.600 --> 0:15:39.840
<v Speaker 1>would experience music as if you had been in the

0:15:39.880 --> 0:15:43.240
<v Speaker 1>recording studio when the artists were laying down the tracks

0:15:43.280 --> 0:15:46.760
<v Speaker 1>for the first time, or maybe more realistically, you would

0:15:46.760 --> 0:15:49.240
<v Speaker 1>be in the studio after audio engineers had worked on

0:15:49.240 --> 0:15:51.400
<v Speaker 1>a track to sweeten it up a little bit before

0:15:51.480 --> 0:15:55.200
<v Speaker 1>recording it to a master. Neil Young first started talking

0:15:55.240 --> 0:15:59.080
<v Speaker 1>about Panto back in two thousand twelve. A Kickstarter campaign

0:15:59.120 --> 0:16:02.800
<v Speaker 1>helped fund the project initially, though the company called Ponto

0:16:02.960 --> 0:16:06.760
<v Speaker 1>Music reportedly had industry backing as well. Despite all this,

0:16:07.240 --> 0:16:10.560
<v Speaker 1>the project dragged on and it bled money, with the

0:16:10.600 --> 0:16:14.560
<v Speaker 1>company having to launch a crowdfunder campaign later to raise

0:16:14.640 --> 0:16:17.880
<v Speaker 1>even more money, so it had two different crowdfunding campaigns

0:16:18.520 --> 0:16:23.600
<v Speaker 1>in the company released the Panto music player device. The

0:16:23.640 --> 0:16:27.280
<v Speaker 1>sales must have been pretty lackluster. The Travel Insider blog

0:16:27.400 --> 0:16:30.840
<v Speaker 1>estimates that perhaps around fifteen thousand Pantos were sold as

0:16:30.840 --> 0:16:34.320
<v Speaker 1>part of the crowdfunding campaign, sort of pre sales. It

0:16:34.400 --> 0:16:37.000
<v Speaker 1>was an expensive piece of technology. It started at four

0:16:37.080 --> 0:16:40.640
<v Speaker 1>hundred dollars and ultimately I think Ponto failed because when

0:16:40.680 --> 0:16:44.080
<v Speaker 1>it comes to considerations people give for portable music, the

0:16:44.120 --> 0:16:48.600
<v Speaker 1>convenience factor typically rates much higher than fidelity. Plus, we

0:16:48.600 --> 0:16:52.920
<v Speaker 1>were starting to shift from downloads to streams around this

0:16:53.000 --> 0:16:56.720
<v Speaker 1>time too, And besides, there's a diminishing returns issue when

0:16:56.720 --> 0:17:00.360
<v Speaker 1>it comes to fidelity. Yes, you can from a nickel

0:17:00.480 --> 0:17:03.040
<v Speaker 1>level see an improvement in audio, like you can look

0:17:03.080 --> 0:17:07.360
<v Speaker 1>at the different meters and say, okay, we detect more

0:17:07.400 --> 0:17:13.720
<v Speaker 1>precisely that this recording is more uh accurate a representation

0:17:13.800 --> 0:17:17.040
<v Speaker 1>of the original sound than this other recording. You can

0:17:17.080 --> 0:17:19.679
<v Speaker 1>do that from a technical perspective, but a lot of

0:17:19.720 --> 0:17:23.159
<v Speaker 1>us have trouble telling the difference between a good music

0:17:23.240 --> 0:17:27.800
<v Speaker 1>playback session and an excellent music playback session. It's very

0:17:27.880 --> 0:17:31.360
<v Speaker 1>easy to tell bad from good. But once you get

0:17:31.440 --> 0:17:35.320
<v Speaker 1>up to good things, get a bit more subjective. The

0:17:35.400 --> 0:17:38.679
<v Speaker 1>Pano players stuck around for two whole years before it

0:17:38.720 --> 0:17:42.600
<v Speaker 1>faded away after various partners had already gone bankrupt. There

0:17:42.680 --> 0:17:45.639
<v Speaker 1>was talk of Pano leading to another service, you know,

0:17:45.720 --> 0:17:48.359
<v Speaker 1>kind of evolving into something else, but so far nothing

0:17:48.359 --> 0:17:51.200
<v Speaker 1>has come of that. Now when we come back, we're

0:17:51.200 --> 0:17:55.240
<v Speaker 1>gonna get all googly up in here, But first let's

0:17:55.240 --> 0:18:05.600
<v Speaker 1>take a break. Well, I've already spoiled it. But one

0:18:05.640 --> 0:18:09.280
<v Speaker 1>company that has had a very long history of abandoned

0:18:09.320 --> 0:18:12.960
<v Speaker 1>projects is Google, and that shouldn't be a surprise because

0:18:13.000 --> 0:18:16.160
<v Speaker 1>for more than a decade the company encouraged its employees

0:18:16.200 --> 0:18:21.199
<v Speaker 1>to experiment and think outside the box. Until about the

0:18:21.280 --> 0:18:24.760
<v Speaker 1>general policy at Google was that Googlers could spend twenty

0:18:25.160 --> 0:18:28.200
<v Speaker 1>of their time working on their own projects that could

0:18:28.280 --> 0:18:32.160
<v Speaker 1>potentially benefit Google down the line, but they weren't part

0:18:32.320 --> 0:18:36.320
<v Speaker 1>of the employee's normal work. So that could mean that

0:18:36.400 --> 0:18:39.600
<v Speaker 1>Monday through Thursday you work on your official projects, and

0:18:39.600 --> 0:18:42.240
<v Speaker 1>then on Fridays you just kind of experiment and build

0:18:42.280 --> 0:18:44.600
<v Speaker 1>stuff that might or might not ever see the light

0:18:44.640 --> 0:18:48.600
<v Speaker 1>of day. This was Google's way of encouraging innovation within

0:18:48.640 --> 0:18:51.680
<v Speaker 1>the company, and a lot of elements of Google products

0:18:51.720 --> 0:18:55.760
<v Speaker 1>emerged because of this policy, but we also saw stuff

0:18:55.800 --> 0:18:58.600
<v Speaker 1>that would get a launch or get incorporated into something

0:18:58.640 --> 0:19:01.800
<v Speaker 1>else and over time and Google would just step back

0:19:01.880 --> 0:19:04.600
<v Speaker 1>from it. Sometimes I think the problem was that Google

0:19:04.800 --> 0:19:07.080
<v Speaker 1>didn't really know how to launch and promote some of

0:19:07.119 --> 0:19:10.320
<v Speaker 1>these products. But in other cases it really was more

0:19:10.480 --> 0:19:14.719
<v Speaker 1>that the products just didn't appeal to non Google engineer types,

0:19:15.240 --> 0:19:18.560
<v Speaker 1>or that you were looking at something that was questionably useful,

0:19:18.800 --> 0:19:22.360
<v Speaker 1>or it just wasn't very user friendly in general. Anyway,

0:19:22.840 --> 0:19:25.639
<v Speaker 1>there's a bunch of Google products we could talk about

0:19:25.680 --> 0:19:28.439
<v Speaker 1>that didn't go very far, and a few that never

0:19:28.480 --> 0:19:32.159
<v Speaker 1>emerged beyond an announcement. Oh and before I forget, you

0:19:32.240 --> 0:19:35.320
<v Speaker 1>might wonder why Google abandoned that you know, employees get

0:19:35.359 --> 0:19:40.800
<v Speaker 1>time to pursue their own projects policy. Sometimes around it's

0:19:40.840 --> 0:19:44.600
<v Speaker 1>not because the company changed course on innovation, but because

0:19:44.600 --> 0:19:48.080
<v Speaker 1>of managers. See, managers at Google are accountable for the

0:19:48.080 --> 0:19:52.320
<v Speaker 1>productivity of the teams they manage, and that time really

0:19:52.359 --> 0:19:55.080
<v Speaker 1>eats into the number of hours teams can dedicate to

0:19:55.280 --> 0:19:58.639
<v Speaker 1>official Google projects, and that hits the managers when it

0:19:58.680 --> 0:20:01.600
<v Speaker 1>comes to review time. So there was a shift within

0:20:01.640 --> 0:20:06.040
<v Speaker 1>the company to eliminate the loosey goosey time component to

0:20:06.119 --> 0:20:09.160
<v Speaker 1>boost productivity and go with a more top down approach

0:20:09.200 --> 0:20:13.399
<v Speaker 1>to innovation. Anyway, let's talk about some Google products, some

0:20:13.640 --> 0:20:17.399
<v Speaker 1>which may have been spawned from that time policy that

0:20:17.600 --> 0:20:20.840
<v Speaker 1>ultimately flopped. And this is just a sampling. I could

0:20:20.880 --> 0:20:24.600
<v Speaker 1>do multiple episodes about all the different products from Google

0:20:24.720 --> 0:20:28.000
<v Speaker 1>that ultimately got the AX. So consider this more of

0:20:28.040 --> 0:20:32.520
<v Speaker 1>a sampler platter, arranged in no particular order. And we'll

0:20:32.560 --> 0:20:35.720
<v Speaker 1>start with a Google product that lasted all of one

0:20:35.960 --> 0:20:40.320
<v Speaker 1>whole day. I'm talking about Google X. Now, this is

0:20:40.359 --> 0:20:44.800
<v Speaker 1>not the moonshot Google X. That's a division inside Google

0:20:44.840 --> 0:20:48.480
<v Speaker 1>that focuses on bleeding edge R and D. It's kind

0:20:48.520 --> 0:20:52.679
<v Speaker 1>of Google's version of Lockheed's skunk Works. No. No, the

0:20:52.720 --> 0:20:55.159
<v Speaker 1>Google X i'm talking about was a different approach to

0:20:55.200 --> 0:20:58.280
<v Speaker 1>Google Search, and it was only available on March six,

0:20:58.720 --> 0:21:02.040
<v Speaker 1>two thousand five. Back in two thousand and five, the

0:21:02.080 --> 0:21:05.040
<v Speaker 1>basic Google search bar allows you to indicate what sort

0:21:05.040 --> 0:21:08.040
<v Speaker 1>of results you wanted to look for before you hit

0:21:08.119 --> 0:21:12.120
<v Speaker 1>search or I'm feeling lucky. The I'm feeling lucky button

0:21:12.160 --> 0:21:14.520
<v Speaker 1>would just take you to whatever the top search result

0:21:14.720 --> 0:21:17.800
<v Speaker 1>was for your query. You could search the web for

0:21:17.880 --> 0:21:21.520
<v Speaker 1>pages related to your query. You could search images, you

0:21:21.520 --> 0:21:24.399
<v Speaker 1>could search for news articles and so on. That stuff

0:21:24.440 --> 0:21:27.040
<v Speaker 1>still exists, by the way, but now it's after the jump,

0:21:27.119 --> 0:21:30.440
<v Speaker 1>after you've done that initial search. But in the old

0:21:30.520 --> 0:21:33.159
<v Speaker 1>days you could do it before you actually hit the

0:21:33.200 --> 0:21:37.520
<v Speaker 1>search button. Anyway, Google X was a new layout for search,

0:21:37.720 --> 0:21:41.840
<v Speaker 1>with icons replacing the text above the search bar. So

0:21:42.040 --> 0:21:45.520
<v Speaker 1>there was a portrait in a frame icon that represented

0:21:45.560 --> 0:21:49.520
<v Speaker 1>image search, there was a newspaper icon that represented news,

0:21:49.800 --> 0:21:53.280
<v Speaker 1>and so on. It looked a lot like Apple's Mac

0:21:53.320 --> 0:21:59.000
<v Speaker 1>os ten or os x doc like a lot a

0:21:59.080 --> 0:22:04.080
<v Speaker 1>lot like it. Chakai O Haasama, the software engineer presumably

0:22:04.119 --> 0:22:07.920
<v Speaker 1>behind the redesign, acknowledge the connection to Mac os ten.

0:22:08.720 --> 0:22:12.119
<v Speaker 1>But here's the thing. There are certain companies that have

0:22:12.280 --> 0:22:17.480
<v Speaker 1>a reputation for really jealously guarding their I p. Apple

0:22:17.600 --> 0:22:20.320
<v Speaker 1>is one of those companies. In fact, the company has

0:22:20.359 --> 0:22:23.640
<v Speaker 1>been known to send legal teams after other companies that

0:22:23.680 --> 0:22:27.040
<v Speaker 1>looked like they were kind of copying Apple style. This,

0:22:27.160 --> 0:22:29.359
<v Speaker 1>by the way, is pretty rich if you know the

0:22:29.440 --> 0:22:32.600
<v Speaker 1>history of Apple's graphic user interface and how Steve Jobs

0:22:32.640 --> 0:22:35.920
<v Speaker 1>himself was famous for stealing other ideas and making them

0:22:35.960 --> 0:22:40.600
<v Speaker 1>Apple's own approach. Anyway, while neither Apple nor Google said

0:22:40.640 --> 0:22:44.359
<v Speaker 1>anything about it, the OS ten like layout of Google

0:22:44.400 --> 0:22:49.640
<v Speaker 1>Search was gone by March two five. Next is Google Lively,

0:22:49.960 --> 0:22:53.880
<v Speaker 1>which I honestly don't remember being a thing. Now. It's

0:22:53.920 --> 0:22:56.439
<v Speaker 1>possible I heard about it at the time, but Google

0:22:56.520 --> 0:22:58.879
<v Speaker 1>launched this back in two thousand and eight. That is

0:22:58.920 --> 0:23:02.240
<v Speaker 1>the same year we paunched tech Stuff, So it's also

0:23:02.400 --> 0:23:06.080
<v Speaker 1>entirely possible that it just completely escaped my attention. It

0:23:06.119 --> 0:23:08.199
<v Speaker 1>wasn't around for very long, so it's not like I

0:23:08.240 --> 0:23:10.520
<v Speaker 1>had a lot of opportunities to get familiar with it.

0:23:10.960 --> 0:23:14.480
<v Speaker 1>So what the heck was Google Lively? We'll simply put

0:23:14.800 --> 0:23:18.760
<v Speaker 1>Google Lively was a way of creating online three D

0:23:18.960 --> 0:23:21.880
<v Speaker 1>spaces that kind of served as a sort of chat room.

0:23:22.240 --> 0:23:25.199
<v Speaker 1>You can think of something like Second Life but for Google,

0:23:25.800 --> 0:23:28.800
<v Speaker 1>or something that's kind of like an M M O RPG,

0:23:29.720 --> 0:23:34.080
<v Speaker 1>just without the overt game elements. It all fit inside

0:23:34.119 --> 0:23:36.960
<v Speaker 1>the web browser experience, so you didn't have to download

0:23:36.960 --> 0:23:40.439
<v Speaker 1>a program or anything. When it launched. It worked only

0:23:40.480 --> 0:23:45.240
<v Speaker 1>with PCs running Windows, specifically either Windows XP or Windows

0:23:45.359 --> 0:23:49.639
<v Speaker 1>Vista anyone remember those, and it was also compatible with

0:23:49.760 --> 0:23:53.200
<v Speaker 1>Internet Explorer or Firefox. I don't think It was even

0:23:53.240 --> 0:23:56.480
<v Speaker 1>compatible with Google Chrome, though to be fair, Chrome did

0:23:56.480 --> 0:23:59.640
<v Speaker 1>not launch until September two eight, so the same year

0:23:59.680 --> 0:24:03.119
<v Speaker 1>that Ly came out. The company planned future versions that

0:24:03.160 --> 0:24:06.280
<v Speaker 1>we're supposed to work on Mac and Linux computers as well.

0:24:06.960 --> 0:24:10.240
<v Speaker 1>Rooms within Google Lively had their own u r l s,

0:24:10.520 --> 0:24:13.399
<v Speaker 1>so you could link them together within Google Lively, and

0:24:13.520 --> 0:24:17.280
<v Speaker 1>moving from one virtual room to another was essentially the

0:24:17.320 --> 0:24:20.080
<v Speaker 1>same thing as clicking on a link and going to

0:24:20.200 --> 0:24:23.600
<v Speaker 1>a new web page. Google Lively could be embedded into

0:24:23.640 --> 0:24:26.760
<v Speaker 1>other websites, so a web administrator for a big brand

0:24:27.040 --> 0:24:30.480
<v Speaker 1>could incorporate Google Lively into the brand's own web presence

0:24:30.720 --> 0:24:34.159
<v Speaker 1>and allow visitors to wander around a virtual space. You

0:24:34.160 --> 0:24:37.840
<v Speaker 1>could have some limited interactions with virtual objects and with

0:24:37.880 --> 0:24:40.560
<v Speaker 1>other visitors to the three D room, you could chat.

0:24:40.680 --> 0:24:43.359
<v Speaker 1>Your messages would appear in a little word balloons above

0:24:43.400 --> 0:24:46.119
<v Speaker 1>your avatar's head. You could also open up a separate

0:24:46.200 --> 0:24:49.000
<v Speaker 1>chat window if you preferred, which made it a lot

0:24:49.000 --> 0:24:52.840
<v Speaker 1>easier to follow a conversation, and several actions were also

0:24:52.880 --> 0:24:55.679
<v Speaker 1>included as animations for your avatar, so rather than just

0:24:55.760 --> 0:24:59.600
<v Speaker 1>typing in something like hugs, you could have your avatar hug.

0:24:59.640 --> 0:25:02.840
<v Speaker 1>Another one Google Lively was one of those projects that

0:25:02.960 --> 0:25:06.439
<v Speaker 1>grew out of the twenty percent employee time policy. But

0:25:06.560 --> 0:25:09.920
<v Speaker 1>one thing it didn't have was a way to generate revenue.

0:25:10.280 --> 0:25:12.679
<v Speaker 1>There was no plan on how to use Google Lively

0:25:12.760 --> 0:25:15.880
<v Speaker 1>to make money, and so while it was kind of interesting,

0:25:16.280 --> 0:25:19.440
<v Speaker 1>it also didn't serve much of a business purpose, and

0:25:19.520 --> 0:25:22.280
<v Speaker 1>a lot of tech journals of the time pretty much

0:25:22.359 --> 0:25:26.840
<v Speaker 1>dismissed Google Lively, calling it more lame than Second Life.

0:25:27.080 --> 0:25:31.000
<v Speaker 1>That's their words, not mine. At the time, the world

0:25:31.040 --> 0:25:34.000
<v Speaker 1>was also sliding into a recession, which was affecting the

0:25:34.080 --> 0:25:36.720
<v Speaker 1>ad revenue business kind of like what we saw in

0:25:37.840 --> 0:25:40.480
<v Speaker 1>and since AD revenue is the way that Google makes

0:25:40.520 --> 0:25:44.119
<v Speaker 1>the vast majority of its money, leaders within the company

0:25:44.160 --> 0:25:47.600
<v Speaker 1>decided that Google Lively was a distraction and that really

0:25:47.640 --> 0:25:50.040
<v Speaker 1>all hands were needed on deck to deal with the

0:25:50.119 --> 0:25:54.640
<v Speaker 1>lagging AD dollars. It launched in July two and Google

0:25:54.760 --> 0:25:56.879
<v Speaker 1>killed it at the end of that year, so it

0:25:56.920 --> 0:26:00.000
<v Speaker 1>wasn't around for very long. Moving up to two thousand

0:26:00.040 --> 0:26:03.199
<v Speaker 1>and nine, we get to Google Wave, which was a

0:26:03.240 --> 0:26:07.280
<v Speaker 1>real time online collaborative editing tool. You had create a

0:26:07.320 --> 0:26:10.160
<v Speaker 1>document called a wave, then you could invite other people

0:26:10.160 --> 0:26:12.560
<v Speaker 1>to join it, and then together you could all make

0:26:12.680 --> 0:26:15.800
<v Speaker 1>changes all at the same time, and you could see

0:26:15.960 --> 0:26:18.800
<v Speaker 1>people making changes to stuff in real time, and you

0:26:18.800 --> 0:26:21.679
<v Speaker 1>could chat or leave comments about it. Now. At the

0:26:21.720 --> 0:26:24.159
<v Speaker 1>time it came out, I was preparing to launch a

0:26:24.280 --> 0:26:27.880
<v Speaker 1>tech Stuff video series with my original co host, Chris Palette.

0:26:28.359 --> 0:26:30.960
<v Speaker 1>We used Google Wave to help plan out our episodes.

0:26:31.280 --> 0:26:34.640
<v Speaker 1>We would build our show in Google Wave and we

0:26:34.760 --> 0:26:37.840
<v Speaker 1>had tech news segments. We also had some goofy stuff

0:26:37.880 --> 0:26:41.000
<v Speaker 1>in there. We had a tweet of the week segment. Gosh,

0:26:41.040 --> 0:26:45.920
<v Speaker 1>those were fun days. Anyway. Google Wave lasted only slightly

0:26:46.000 --> 0:26:49.760
<v Speaker 1>longer than our video series did. While some features would

0:26:49.760 --> 0:26:53.760
<v Speaker 1>find their way into other Google products, Google Wave itself

0:26:53.840 --> 0:26:56.800
<v Speaker 1>was washed out by when Google said it would no

0:26:56.840 --> 0:26:59.960
<v Speaker 1>longer support development for the platform, and Google a Fish

0:27:00.200 --> 0:27:03.960
<v Speaker 1>deleted everything that was on Google Wave in April of

0:27:04.040 --> 0:27:08.160
<v Speaker 1>tw Some of the features from Google Wave would find

0:27:08.200 --> 0:27:12.120
<v Speaker 1>their way into another failed Google product called Google Buzz,

0:27:12.160 --> 0:27:14.680
<v Speaker 1>which launched in two just a couple of months after

0:27:14.720 --> 0:27:17.920
<v Speaker 1>the company said it wasn't going to support Wave anymore.

0:27:18.640 --> 0:27:21.439
<v Speaker 1>Google Buzz was kind of a bridge between Google Wave

0:27:21.960 --> 0:27:25.399
<v Speaker 1>and Google Plus, and here's a news flash, none of

0:27:25.440 --> 0:27:29.080
<v Speaker 1>those products are around anymore. Google Buzz was all about

0:27:29.160 --> 0:27:33.680
<v Speaker 1>adding social features to Gmail, and Buzz was itself incorporated

0:27:33.760 --> 0:27:37.879
<v Speaker 1>directly into Gmail. That in itself would become a pretty

0:27:37.880 --> 0:27:41.000
<v Speaker 1>big problem for the company. But here's how Google described

0:27:41.040 --> 0:27:44.440
<v Speaker 1>it in their initial blog post announcing the service. Back

0:27:44.480 --> 0:27:49.040
<v Speaker 1>in quote, Google, Buzz is a new way to start

0:27:49.119 --> 0:27:52.560
<v Speaker 1>conversations about the things you find interesting. It's built right

0:27:52.600 --> 0:27:54.760
<v Speaker 1>into Gmail, so you don't have to peck out an

0:27:54.880 --> 0:27:57.959
<v Speaker 1>entirely new set of friends from scratch. It just works.

0:27:58.359 --> 0:28:00.600
<v Speaker 1>If you think about it, There's always been a big

0:28:00.640 --> 0:28:04.399
<v Speaker 1>social network underlying Gmail. Buzz brings the network to the

0:28:04.440 --> 0:28:07.520
<v Speaker 1>service by automatically setting you up to follow the people

0:28:07.600 --> 0:28:10.639
<v Speaker 1>you email and chat with the most. We focused on

0:28:10.680 --> 0:28:15.800
<v Speaker 1>building an easy to use sharing experience that richly integrates photos, videos,

0:28:15.840 --> 0:28:19.320
<v Speaker 1>and links, and makes it easy to share publicly or privately,

0:28:19.520 --> 0:28:21.840
<v Speaker 1>so you don't have to use different tools to share

0:28:21.880 --> 0:28:26.400
<v Speaker 1>with different audiences. Plus, Buzz integrates tightly with your existing

0:28:26.440 --> 0:28:29.480
<v Speaker 1>Gmail inbox, so you're sure to see the stuff that

0:28:29.520 --> 0:28:33.719
<v Speaker 1>matters most as it happens in real time. End quote.

0:28:34.320 --> 0:28:38.680
<v Speaker 1>Buzz would let users or force them, depending upon your

0:28:38.880 --> 0:28:43.280
<v Speaker 1>point of view, aggregate feeds from their various social circles

0:28:43.320 --> 0:28:47.040
<v Speaker 1>into one place, so for example, you could see tweets

0:28:47.160 --> 0:28:50.280
<v Speaker 1>posted by your friends pop up and Google Buzz, assuming

0:28:50.440 --> 0:28:54.200
<v Speaker 1>you had those friends listed as contacts and Gmail. And

0:28:54.280 --> 0:28:57.960
<v Speaker 1>it wasn't just Twitter. You could aggregate stuff from other

0:28:58.000 --> 0:29:03.040
<v Speaker 1>services like Flicker because a friend, feed, Blogger, and YouTube

0:29:03.480 --> 0:29:05.400
<v Speaker 1>and I'm sure a couple of those names were blasts

0:29:05.440 --> 0:29:08.280
<v Speaker 1>from the past for some of you out there. You

0:29:08.320 --> 0:29:11.800
<v Speaker 1>can also post to Google Buzz directly, similar to making

0:29:11.800 --> 0:29:15.040
<v Speaker 1>a post on Facebook or Twitter. You could include pictures

0:29:15.120 --> 0:29:18.000
<v Speaker 1>or links, and friends could comment on those posts and

0:29:18.040 --> 0:29:22.200
<v Speaker 1>create a threaded conversation. Nothing groundbreaking, you know, but it

0:29:22.240 --> 0:29:26.960
<v Speaker 1>was all nested within Gmail. And then came the problems. See,

0:29:26.960 --> 0:29:31.480
<v Speaker 1>by incorporating Buzz into Gmail, it turned all Gmail users

0:29:31.680 --> 0:29:36.120
<v Speaker 1>into Buzz users, and that wasn't necessarily something that Gmail

0:29:36.200 --> 0:29:39.600
<v Speaker 1>folks wanted, and they weren't too terribly keen on their

0:29:39.600 --> 0:29:44.000
<v Speaker 1>contact lists becoming public or that stuff they thought they

0:29:44.000 --> 0:29:47.240
<v Speaker 1>had been posting to a small group of friends was

0:29:47.320 --> 0:29:51.200
<v Speaker 1>now circulating among much larger groups thanks to the fact

0:29:51.200 --> 0:29:54.000
<v Speaker 1>that Buzz would helpfully point out friends of friends that

0:29:54.080 --> 0:29:57.520
<v Speaker 1>you might know to expand your circle. In short, the

0:29:57.560 --> 0:30:01.320
<v Speaker 1>implementation was a pretty big min as far as privacy

0:30:01.360 --> 0:30:05.040
<v Speaker 1>and trust are concerned. Google was actually taken to court

0:30:05.360 --> 0:30:07.960
<v Speaker 1>and lost over the matter, and they paid out more

0:30:07.960 --> 0:30:11.160
<v Speaker 1>than eight million dollars As a result. Buzz got a

0:30:11.200 --> 0:30:13.840
<v Speaker 1>couple of changes to make it less intrusive, but it

0:30:14.000 --> 0:30:16.960
<v Speaker 1>just wasn't meant to be. It would be phased out

0:30:17.000 --> 0:30:19.880
<v Speaker 1>to make way for Google Plus, though the two services

0:30:19.920 --> 0:30:22.800
<v Speaker 1>did exist side by side for a short while. And

0:30:22.880 --> 0:30:25.920
<v Speaker 1>of course now Google Plus is gone too. But I

0:30:25.960 --> 0:30:28.360
<v Speaker 1>do have one last Google product I want to mention,

0:30:28.560 --> 0:30:31.200
<v Speaker 1>and it's not Google Plus. As I said earlier, I

0:30:31.200 --> 0:30:33.760
<v Speaker 1>could do a whole episode on all the different Google

0:30:33.760 --> 0:30:36.720
<v Speaker 1>products that came and went, with some of them having

0:30:36.760 --> 0:30:39.440
<v Speaker 1>features that found their way into other stuff. And one

0:30:39.480 --> 0:30:43.719
<v Speaker 1>of those gadgets is the Nexus Q. Now, the Nexus

0:30:43.800 --> 0:30:46.920
<v Speaker 1>QUE is special because it never actually came out as

0:30:46.960 --> 0:30:50.720
<v Speaker 1>a consumer product. It was announced Google unveiled it at

0:30:50.760 --> 0:30:55.120
<v Speaker 1>the company's Io conference for developers in twenty twelve. In fact,

0:30:55.360 --> 0:30:58.680
<v Speaker 1>people who were attending that conference actually got a Nexus Q,

0:30:59.280 --> 0:31:01.640
<v Speaker 1>which I guess makes it a special kind of collector's

0:31:01.720 --> 0:31:04.120
<v Speaker 1>item since Google pushed back the release date of the

0:31:04.120 --> 0:31:07.920
<v Speaker 1>consumer version until the whole thing just got canned. So

0:31:08.280 --> 0:31:12.000
<v Speaker 1>what was the Nexus Q simply? But it was a

0:31:12.040 --> 0:31:15.520
<v Speaker 1>media streaming device you would connect it to speakers or

0:31:15.520 --> 0:31:18.640
<v Speaker 1>to a television, and you used an app to control

0:31:18.720 --> 0:31:21.720
<v Speaker 1>the Nexus Q. You could send content to it that

0:31:21.800 --> 0:31:24.880
<v Speaker 1>then would play out either on the TV screen or

0:31:24.920 --> 0:31:27.320
<v Speaker 1>on the stereo speakers or whatever it was connected to.

0:31:28.040 --> 0:31:30.840
<v Speaker 1>The design of the gadget was very striking. It was

0:31:31.040 --> 0:31:34.120
<v Speaker 1>spherical with a flat section, so it could sit steady

0:31:34.160 --> 0:31:36.640
<v Speaker 1>on a table or on the floor, wouldn't just roll around.

0:31:37.280 --> 0:31:40.440
<v Speaker 1>It also had a circle of tiny led lights going

0:31:40.480 --> 0:31:42.880
<v Speaker 1>around it, kind of like an equator, but at a

0:31:42.880 --> 0:31:46.160
<v Speaker 1>forty five degree angle relative to the sphere. It weighed

0:31:46.160 --> 0:31:49.480
<v Speaker 1>about two pounds or not quite a kilogram, and it

0:31:49.520 --> 0:31:53.000
<v Speaker 1>looked pretty darn nifty. But that's sort of where the

0:31:53.040 --> 0:31:58.120
<v Speaker 1>positive remarks end. See The Nexus q was limited to

0:31:58.360 --> 0:32:01.800
<v Speaker 1>streaming content from Google server says like YouTube or what

0:32:01.960 --> 0:32:05.480
<v Speaker 1>was then Google Play. There was no support for any

0:32:05.520 --> 0:32:09.840
<v Speaker 1>other streaming services. The control scheme was somewhat confusing, according

0:32:09.840 --> 0:32:13.160
<v Speaker 1>to multiple reviews, and on top of everything else, it

0:32:13.280 --> 0:32:18.160
<v Speaker 1>was expensive. The projected price was two dollars, which also

0:32:18.200 --> 0:32:21.240
<v Speaker 1>didn't include stuff like speakers if you wanted to make

0:32:21.240 --> 0:32:24.400
<v Speaker 1>it a sound system, so this wasn't like the later

0:32:24.560 --> 0:32:28.080
<v Speaker 1>Google Home smart speakers or anything like that. It wasn't

0:32:28.080 --> 0:32:31.440
<v Speaker 1>as robust as the chrome Cast devices that would come later,

0:32:31.680 --> 0:32:33.920
<v Speaker 1>which allow you to stream all sorts of content to

0:32:34.000 --> 0:32:37.440
<v Speaker 1>a television using a connected phone or computer. It was

0:32:37.480 --> 0:32:40.760
<v Speaker 1>a limited media streaming device at a premium cost in

0:32:40.800 --> 0:32:44.160
<v Speaker 1>a world that already had stuff like Apple TV, Roku

0:32:44.440 --> 0:32:48.680
<v Speaker 1>and so Nose devices. Ultimately, Google chose not to release

0:32:48.720 --> 0:32:52.200
<v Speaker 1>the Nexus Queue. Instead, many of those features would go

0:32:52.240 --> 0:32:56.000
<v Speaker 1>into devices like the aforementioned chrome Cast and smart speakers.

0:32:56.520 --> 0:32:59.960
<v Speaker 1>They wouldn't be quite as striking from a stylistic standpoint

0:33:00.040 --> 0:33:02.520
<v Speaker 1>is the NEXTUS queue, but they did prove to be

0:33:02.560 --> 0:33:06.360
<v Speaker 1>more versatile. And that's our Google section for this episode.

0:33:06.520 --> 0:33:09.960
<v Speaker 1>Like I said, I can talk about tons more. Let's

0:33:10.000 --> 0:33:14.040
<v Speaker 1>say about Google Fiber, which I'm still waiting for here

0:33:14.080 --> 0:33:18.920
<v Speaker 1>in Atlanta. There's a Google Fiber office near our studios downtown.

0:33:19.000 --> 0:33:22.280
<v Speaker 1>I signed up years ago to connect to Google Fiber,

0:33:22.640 --> 0:33:25.160
<v Speaker 1>but never built out to my neighborhood, which actually sits

0:33:25.200 --> 0:33:28.920
<v Speaker 1>between two major points in the Google Fiber infrastructure in

0:33:28.960 --> 0:33:32.520
<v Speaker 1>our city. But that story would require a whole episode

0:33:32.520 --> 0:33:36.040
<v Speaker 1>on its own. And I'll just go to break so

0:33:36.080 --> 0:33:38.800
<v Speaker 1>I can be bitter for a bit. I'll be better

0:33:39.360 --> 0:33:42.280
<v Speaker 1>not bitter when we come back and I'll talk about

0:33:42.320 --> 0:33:45.640
<v Speaker 1>a few more flops, but first let's take another break.

0:33:53.200 --> 0:33:55.840
<v Speaker 1>In a recent Text of News episode, I talked about

0:33:55.840 --> 0:33:59.440
<v Speaker 1>an Apple TV Plus series about the not really a

0:33:59.560 --> 0:34:02.440
<v Speaker 1>tech many called we Work, and I figured we should

0:34:02.480 --> 0:34:05.640
<v Speaker 1>probably do a brief overview of we Work, because while

0:34:05.640 --> 0:34:10.600
<v Speaker 1>it isn't really a tech company, it consistently positioned itself

0:34:10.760 --> 0:34:13.759
<v Speaker 1>as if it were a tech company. And while this

0:34:13.800 --> 0:34:17.520
<v Speaker 1>story isn't over yet, it has had a massive fall

0:34:17.640 --> 0:34:22.120
<v Speaker 1>from grace so sky high overview. We Work as a

0:34:22.160 --> 0:34:25.880
<v Speaker 1>company that secures spaces and buildings and then leases or

0:34:25.920 --> 0:34:30.120
<v Speaker 1>subleases those spaces out to other professionals. So that can

0:34:30.160 --> 0:34:33.719
<v Speaker 1>include freelancers who just need a workspace of their own,

0:34:34.239 --> 0:34:37.560
<v Speaker 1>or companies that don't have their own offices yet. So

0:34:37.760 --> 0:34:40.239
<v Speaker 1>if you're launching a startup and you don't have the

0:34:40.280 --> 0:34:42.359
<v Speaker 1>cash on hand to get a space of your own,

0:34:42.840 --> 0:34:45.799
<v Speaker 1>you could rent some space from we Work. And it

0:34:45.880 --> 0:34:49.080
<v Speaker 1>came with some perks, like an internet infrastructure, so you

0:34:49.080 --> 0:34:53.200
<v Speaker 1>could just connect to the we Work offices internet. They

0:34:53.239 --> 0:34:57.359
<v Speaker 1>also had some goodies like free beer, no kidding. For

0:34:57.400 --> 0:34:59.319
<v Speaker 1>a while, that was one of the perks of a

0:34:59.400 --> 0:35:02.520
<v Speaker 1>wee Work in environment a breake area stocked with free beer,

0:35:02.800 --> 0:35:06.080
<v Speaker 1>oh and also wine. But the days of wine and

0:35:07.280 --> 0:35:11.520
<v Speaker 1>Bruskis were not to last. The company was leading up

0:35:11.560 --> 0:35:14.720
<v Speaker 1>to holding an i p O, or initial public offering

0:35:14.840 --> 0:35:18.680
<v Speaker 1>in two thousand nineteen. That's when a privately owned company

0:35:18.800 --> 0:35:22.760
<v Speaker 1>makes the transition to a publicly traded company and joins

0:35:22.800 --> 0:35:27.120
<v Speaker 1>the stock market. We works i p O was highly anticipated.

0:35:27.360 --> 0:35:30.120
<v Speaker 1>Investors had been pouring a lot of money into the

0:35:30.160 --> 0:35:33.720
<v Speaker 1>startup and it had reached a peak valuation of almost

0:35:33.840 --> 0:35:39.760
<v Speaker 1>fifty billion dollars that's billion with a B, a princely sum.

0:35:39.760 --> 0:35:44.239
<v Speaker 1>But then things went pear shaped. Well really, the pear

0:35:44.320 --> 0:35:46.440
<v Speaker 1>shaped stuff was kind of in the works for a while,

0:35:46.719 --> 0:35:48.600
<v Speaker 1>but it really came to a head at the i

0:35:48.760 --> 0:35:51.719
<v Speaker 1>p O when the company filed the i p O

0:35:52.080 --> 0:35:56.120
<v Speaker 1>S one registration document with the SEC. Because that document

0:35:56.200 --> 0:35:59.640
<v Speaker 1>seemed to belong to another universe. This is a document

0:35:59.640 --> 0:36:02.400
<v Speaker 1>that lay is a lot of information about a company

0:36:02.480 --> 0:36:06.280
<v Speaker 1>before it goes public, so stuff like the corporate structure

0:36:06.400 --> 0:36:10.240
<v Speaker 1>and succession planning. But this one didn't seem to belong

0:36:10.280 --> 0:36:14.080
<v Speaker 1>to our universe. It seemed to belong to a cartoon universe.

0:36:14.400 --> 0:36:17.239
<v Speaker 1>It included a corporate hierarchy in which you had at

0:36:17.239 --> 0:36:21.040
<v Speaker 1>the top the WE Company. Underneath that was the WE

0:36:21.280 --> 0:36:24.600
<v Speaker 1>Company m C l l C. Then under that you

0:36:24.680 --> 0:36:27.719
<v Speaker 1>had the WE Company Partnership, under which was the We

0:36:27.920 --> 0:36:30.480
<v Speaker 1>Work Company's ll C. So it's kind of like a

0:36:30.560 --> 0:36:35.200
<v Speaker 1>Russian nesting doll more than an organizational chart. Moreover, the

0:36:35.239 --> 0:36:39.280
<v Speaker 1>company had some massive expenses in there, like a private

0:36:39.400 --> 0:36:43.600
<v Speaker 1>jet for the CEO and co founder Adam Neuman, and

0:36:43.640 --> 0:36:45.799
<v Speaker 1>there were questions about the fact that Neiman had been

0:36:45.840 --> 0:36:49.000
<v Speaker 1>purchasing real estate on his own then leasing that real

0:36:49.120 --> 0:36:52.640
<v Speaker 1>estate to we Work, which would suble sit down to customers.

0:36:53.239 --> 0:36:56.000
<v Speaker 1>If you're the CEO of a company that is funded

0:36:56.280 --> 0:37:00.000
<v Speaker 1>by investors, it seems to me like it's a little

0:37:00.120 --> 0:37:02.600
<v Speaker 1>bit of a conflict of interest if you take the

0:37:02.680 --> 0:37:06.760
<v Speaker 1>money of the company to least real estate from yourself,

0:37:07.080 --> 0:37:11.319
<v Speaker 1>using essentially investor money to fund your pockets. But it

0:37:11.360 --> 0:37:14.719
<v Speaker 1>gets stranger the deeper you go. Another co founder of

0:37:14.719 --> 0:37:18.040
<v Speaker 1>We Work is Adam's wife, Rebecca, who is first cousins

0:37:18.040 --> 0:37:21.760
<v Speaker 1>with Gwyneth Paltrow. Now I mentioned that because I detect

0:37:21.880 --> 0:37:25.719
<v Speaker 1>a similar sort of magical thinking in Rebecca as I

0:37:25.760 --> 0:37:30.040
<v Speaker 1>see in Gwyneth, And that's not a compliment. Magical thinking

0:37:30.120 --> 0:37:33.880
<v Speaker 1>means you tend to believe that unrelated events have some

0:37:33.920 --> 0:37:37.120
<v Speaker 1>sort of causal link to them, you know, like if

0:37:37.120 --> 0:37:39.479
<v Speaker 1>you step on a crack, you will in fact break

0:37:39.520 --> 0:37:43.040
<v Speaker 1>your mama's back kind of thing. It's the opposite of

0:37:43.040 --> 0:37:47.080
<v Speaker 1>critical thinking. Anyway. Elements of that were in the I

0:37:47.239 --> 0:37:50.520
<v Speaker 1>p O filing as well, which is unusual to say

0:37:50.520 --> 0:37:54.719
<v Speaker 1>the least. The I p O prospectus gave current and

0:37:54.880 --> 0:38:00.520
<v Speaker 1>potential future investors pause. Maybe that fifty billion dollar valuation

0:38:00.880 --> 0:38:05.880
<v Speaker 1>mostly thanks to major investors SoftBank, maybe that was a

0:38:05.920 --> 0:38:08.680
<v Speaker 1>little bit off the mark, and everything then began to

0:38:08.719 --> 0:38:12.920
<v Speaker 1>crumble under criticism. The company withdrew its IBO filing and

0:38:12.960 --> 0:38:17.239
<v Speaker 1>postponed the offering, which to this day is still postponed.

0:38:17.880 --> 0:38:21.440
<v Speaker 1>A bit later, the board of directors demanded that Neuman

0:38:22.040 --> 0:38:26.120
<v Speaker 1>resign as CEO. But don't worry about him. He got

0:38:26.160 --> 0:38:28.839
<v Speaker 1>to leave with about one point seven billion dollars worth

0:38:28.840 --> 0:38:31.800
<v Speaker 1>of wealth because of a soft Bank buy out. Soft

0:38:31.840 --> 0:38:35.520
<v Speaker 1>Bank took over we Work as majority shareholder and controlled

0:38:35.560 --> 0:38:38.360
<v Speaker 1>the company. The value of the company at that point

0:38:38.360 --> 0:38:43.040
<v Speaker 1>had plunged by around nine percent. SoftBank divested we Work

0:38:43.080 --> 0:38:45.400
<v Speaker 1>of some side businesses that really had nothing to do

0:38:45.480 --> 0:38:48.960
<v Speaker 1>with office space. Like it owned a wave pool company

0:38:49.000 --> 0:38:53.400
<v Speaker 1>at one point. A report in October twenty from the

0:38:53.440 --> 0:38:56.719
<v Speaker 1>company stated that it might be profitable by the end

0:38:56.760 --> 0:39:00.400
<v Speaker 1>of one and that it's going to explore as for

0:39:00.440 --> 0:39:03.520
<v Speaker 1>an I p O again. More recently, there have been

0:39:03.600 --> 0:39:06.320
<v Speaker 1>rumors that We Work might go public through a special

0:39:06.360 --> 0:39:10.759
<v Speaker 1>purpose Acquisition company or sp a C. Now these are

0:39:10.840 --> 0:39:13.600
<v Speaker 1>shell companies that have their own i p O. So

0:39:14.120 --> 0:39:17.520
<v Speaker 1>it's a company that doesn't own anything, doesn't do anything,

0:39:18.040 --> 0:39:21.080
<v Speaker 1>but it goes public. Then it uses the money that's

0:39:21.200 --> 0:39:25.520
<v Speaker 1>raised by that i p O to buy a private company,

0:39:25.560 --> 0:39:29.279
<v Speaker 1>and the private company, now owned by a public company,

0:39:29.400 --> 0:39:33.239
<v Speaker 1>becomes a public company itself. So in other words, this

0:39:33.320 --> 0:39:38.520
<v Speaker 1>process bypasses the I p O process for that private company.

0:39:38.560 --> 0:39:42.600
<v Speaker 1>And you might think that sounds fishy, but this is

0:39:42.960 --> 0:39:46.840
<v Speaker 1>actually legal and accepted, though it can also be risky.

0:39:46.960 --> 0:39:49.520
<v Speaker 1>As I record this, We Work hasn't gone through with

0:39:49.600 --> 0:39:52.880
<v Speaker 1>the sp a C approach, nor has it announced formal

0:39:52.920 --> 0:39:55.480
<v Speaker 1>plans to hold its own I p O. I think

0:39:55.480 --> 0:39:59.479
<v Speaker 1>that we Work team are weighing their options, and we're

0:39:59.520 --> 0:40:02.279
<v Speaker 1>getting to the end of this episode. And as I said,

0:40:02.320 --> 0:40:04.680
<v Speaker 1>there are tons of companies and products that we could

0:40:04.719 --> 0:40:08.080
<v Speaker 1>talk about and not just from Google. So, like I said,

0:40:08.120 --> 0:40:10.480
<v Speaker 1>there's no shortage of those either, Like we could talk

0:40:10.520 --> 0:40:14.799
<v Speaker 1>about the Windows Phone story or the Facebook Phone or

0:40:14.920 --> 0:40:17.640
<v Speaker 1>movie Pass, but I'll save some of those for a

0:40:17.680 --> 0:40:22.040
<v Speaker 1>future installment of what I'm sure will be an endless series.

0:40:22.600 --> 0:40:24.600
<v Speaker 1>For this episode, I thought I would end with a

0:40:24.680 --> 0:40:28.400
<v Speaker 1>notable flop that brings another F word into the mix.

0:40:29.040 --> 0:40:31.719
<v Speaker 1>But not that one, not the dirty one. I'm talking

0:40:31.719 --> 0:40:35.000
<v Speaker 1>about the Samsung Galaxy Notes seven, which brings the word

0:40:35.360 --> 0:40:39.880
<v Speaker 1>fire to our a literate mix of failures, flops, and

0:40:39.960 --> 0:40:46.000
<v Speaker 1>falls from grace. On August, tech reviewers received the first

0:40:46.080 --> 0:40:50.600
<v Speaker 1>round of the Galaxy Note seven smartphone from Samsung, and

0:40:50.680 --> 0:40:55.160
<v Speaker 1>the initial reviews were overwhelmingly positive. The phone had a

0:40:55.200 --> 0:40:59.560
<v Speaker 1>really nice design, apparently felt great to use, had an

0:40:59.600 --> 0:41:02.880
<v Speaker 1>amaze in display, and the early consensus was that the

0:41:02.880 --> 0:41:06.439
<v Speaker 1>phone was just really well designed and potentially the best

0:41:06.440 --> 0:41:10.600
<v Speaker 1>smartphone of the year. And then they started to explode,

0:41:11.320 --> 0:41:14.799
<v Speaker 1>and yeah, that's what some of them did. Less than

0:41:14.840 --> 0:41:17.920
<v Speaker 1>a month after those review models went out, there were

0:41:17.960 --> 0:41:23.240
<v Speaker 1>reports of thirty five exploding Galaxy Notes sevens. The company

0:41:23.360 --> 0:41:25.520
<v Speaker 1>rushed to recall the Notes sevens that were still on

0:41:25.560 --> 0:41:28.759
<v Speaker 1>the market and tried to suss out where the problem was.

0:41:29.360 --> 0:41:32.840
<v Speaker 1>The company's engineers in Korea tried to replicate the issues,

0:41:32.920 --> 0:41:35.680
<v Speaker 1>but they couldn't get any of them to explode, and

0:41:36.000 --> 0:41:38.440
<v Speaker 1>the company was eager to fix these problems and get

0:41:38.480 --> 0:41:41.040
<v Speaker 1>the handsets back on the market after this, you know,

0:41:41.480 --> 0:41:45.360
<v Speaker 1>little hiccup, perhaps limiting the damage of that initial crisis.

0:41:45.760 --> 0:41:48.759
<v Speaker 1>After all, the phone received such great critical praise when

0:41:48.800 --> 0:41:51.640
<v Speaker 1>it was reviewed, it could still be a big seller

0:41:51.760 --> 0:41:54.040
<v Speaker 1>if the company could just make sure that none of

0:41:54.080 --> 0:41:57.360
<v Speaker 1>the other ones would blow up. Samsung stated that the

0:41:57.360 --> 0:42:00.520
<v Speaker 1>problem was likely due to the batteries that the company

0:42:00.560 --> 0:42:03.839
<v Speaker 1>had installed in these handsets, and those batteries came from

0:42:03.840 --> 0:42:06.719
<v Speaker 1>one of the company's suppliers. In fact, the company's supplier

0:42:06.840 --> 0:42:10.920
<v Speaker 1>being itself Samsung SDI or you know, a subsidiary company

0:42:10.920 --> 0:42:14.120
<v Speaker 1>of Samsung, and so they decided they would go with

0:42:14.200 --> 0:42:17.720
<v Speaker 1>a different supplier. They chose a Chinese company to produce

0:42:17.760 --> 0:42:21.280
<v Speaker 1>the batteries, and thus they began to install them into

0:42:21.320 --> 0:42:26.520
<v Speaker 1>the handsets and get those handsets back out on the market. Unfortunately,

0:42:26.880 --> 0:42:31.080
<v Speaker 1>the reports of exploding phones didn't stop with these new batteries,

0:42:31.200 --> 0:42:35.480
<v Speaker 1>indicating that either two different suppliers had the same faulty

0:42:35.520 --> 0:42:39.759
<v Speaker 1>batteries or there was some other issue at play. In

0:42:39.800 --> 0:42:44.960
<v Speaker 1>the meantime, Samsung recalled the phones again, and airlines began

0:42:45.040 --> 0:42:49.360
<v Speaker 1>to issue official statements banning passengers from carrying the Galaxy

0:42:49.400 --> 0:42:52.800
<v Speaker 1>Notes seven on board a plane. That's not a good look,

0:42:53.200 --> 0:42:55.520
<v Speaker 1>and there was a real danger of this crisis spreading

0:42:55.520 --> 0:42:58.600
<v Speaker 1>to other devices that might be perfectly safe, but without

0:42:58.640 --> 0:43:02.440
<v Speaker 1>knowing for sure the would be too high. Samsung kept

0:43:02.520 --> 0:43:05.279
<v Speaker 1>trying to get to the bottom of the issue. Ultimately,

0:43:05.320 --> 0:43:08.680
<v Speaker 1>after two recalls, the company halted production of the Note

0:43:08.760 --> 0:43:13.120
<v Speaker 1>seven and then scrapped the phone model entirely, a really

0:43:13.320 --> 0:43:16.880
<v Speaker 1>costly decision, but probably not as expensive as dealing with

0:43:16.960 --> 0:43:22.000
<v Speaker 1>numerous lawsuits should future phones continue the explosive trend. Three

0:43:22.040 --> 0:43:26.200
<v Speaker 1>months after discontinuing the Notes seven, Samsung issued a release

0:43:26.320 --> 0:43:29.759
<v Speaker 1>explaining the company's findings in an investigation as to what

0:43:30.000 --> 0:43:34.360
<v Speaker 1>caused these fires, and Samsung reps said that the first

0:43:34.360 --> 0:43:37.360
<v Speaker 1>battery had a flaw in the design. At the upper

0:43:37.440 --> 0:43:41.000
<v Speaker 1>right corner. The battery had a flaw where the negative

0:43:41.040 --> 0:43:43.719
<v Speaker 1>and positive terminals of the battery can make contact with

0:43:43.760 --> 0:43:46.480
<v Speaker 1>one another, which would cause a short circuit. Instead of

0:43:46.520 --> 0:43:49.640
<v Speaker 1>the electricity flowing through the circuit try of the phone,

0:43:50.080 --> 0:43:52.520
<v Speaker 1>it was going straight from one terminal to the other

0:43:52.640 --> 0:43:54.919
<v Speaker 1>terminal in the battery. That would make the batteries start

0:43:54.960 --> 0:43:57.160
<v Speaker 1>to heat up very very quickly, to the point where

0:43:57.160 --> 0:43:59.920
<v Speaker 1>it would catch fire and then explode. As for the

0:44:00.120 --> 0:44:03.960
<v Speaker 1>second battery, Samsung said there was a welding defect in

0:44:04.000 --> 0:44:06.880
<v Speaker 1>the production of some of those batteries, which led to

0:44:06.920 --> 0:44:12.000
<v Speaker 1>another short circuit issue and subsequent pyrotechnics. Apparently, the Chinese

0:44:12.000 --> 0:44:15.560
<v Speaker 1>company was really rushing these batteries into production in order

0:44:15.560 --> 0:44:19.000
<v Speaker 1>to meet these sudden demand and some corners might have

0:44:19.040 --> 0:44:22.000
<v Speaker 1>been cut in the process. So, in other words, according

0:44:22.040 --> 0:44:25.239
<v Speaker 1>to Samsung, the reason the Notes seven exploded was due

0:44:25.280 --> 0:44:30.120
<v Speaker 1>to two separate problems with two different batteries. Now I'll

0:44:30.200 --> 0:44:34.480
<v Speaker 1>likely do several more episodes about flops and failures, which, again,

0:44:34.840 --> 0:44:39.200
<v Speaker 1>these are not always tragedies. Sometimes we learn valuable lessons

0:44:39.440 --> 0:44:42.760
<v Speaker 1>from them. And on Wednesday's episode, we're going to follow

0:44:42.800 --> 0:44:46.440
<v Speaker 1>the career of a particular entrepreneur who has been associated

0:44:46.480 --> 0:44:51.279
<v Speaker 1>with some very high profile, very flashy failures. Hell's that

0:44:51.400 --> 0:44:54.120
<v Speaker 1>for a tease, And if any of you out there

0:44:54.160 --> 0:44:57.520
<v Speaker 1>have suggestions for topics I should cover in future episodes

0:44:57.560 --> 0:45:00.239
<v Speaker 1>of Tech Stuff, whether it's a company, a person ality

0:45:00.280 --> 0:45:05.279
<v Speaker 1>in tech, a specific technology. Maybe it's a trend in technology.

0:45:05.320 --> 0:45:07.880
<v Speaker 1>Any of those things let me know. Reach out to

0:45:07.920 --> 0:45:10.960
<v Speaker 1>me on Twitter. The handle is tech stuff H s

0:45:11.120 --> 0:45:19.480
<v Speaker 1>W and I'll talk to you again really soon. Tech

0:45:19.520 --> 0:45:23.000
<v Speaker 1>Stuff is an I Heart Radio production. For more podcasts

0:45:23.000 --> 0:45:25.760
<v Speaker 1>from My Heart Radio, visit the i Heart Radio app,

0:45:25.920 --> 0:45:29.040
<v Speaker 1>Apple Podcasts, or wherever you listen to your favorite shows.