WEBVTT - The Trials of MakerBot

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<v Speaker 1>Get in touch with technology with tech Stuff from how

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<v Speaker 1>stuff works dot com. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I'm your host, John that Strickland. I'm an executive producer

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<v Speaker 1>with how Stuff Works and I love all things tech.

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<v Speaker 1>And this is a part two of the maker Bought story.

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<v Speaker 1>So if you've not heard part one, I recommend listening

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<v Speaker 1>to the episode that published before this one, because otherwise

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<v Speaker 1>you're coming in in medias race. So when I left

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<v Speaker 1>off at the end of the last episode, I mentioned

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<v Speaker 1>that maker Bot's first three D printer, the Cupcake C

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<v Speaker 1>and C, could produce an object that was up to

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<v Speaker 1>four inches per side well five inches tall, so you

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<v Speaker 1>could get a pretty decent sized object if you wanted to.

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<v Speaker 1>And the maker bot community was creating tweaks and upgrades

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<v Speaker 1>to the printer and sharing them on the associated website

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<v Speaker 1>called finger Verse, and the maker bot team was hard

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<v Speaker 1>at work creating the next generation of three D printers

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<v Speaker 1>with an eye toward moving out of the kit space eventually,

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<v Speaker 1>because kits, by their very nature, limit the market you

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<v Speaker 1>can sell to. Typically, you're only going to really sell

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<v Speaker 1>to hardcore hobbyists and makers because they're the ones who

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<v Speaker 1>are willing to put in the work necessary to put

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<v Speaker 1>together these things. Uh, they get a lot of satisfaction

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<v Speaker 1>on that. There is something to be said, like if

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<v Speaker 1>you ever made anything, really but people who build their

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<v Speaker 1>own computers, they can tell you that there's a sense

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<v Speaker 1>of satisfaction when you connect everything and you get it

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<v Speaker 1>to work properly. Um, and a lot of the hobbyists

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<v Speaker 1>take a lot of joy out of that. But it

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<v Speaker 1>does limit the number of people you're gonna sell to

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<v Speaker 1>because there are other folks out there, such as myself,

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<v Speaker 1>who will I have an appreciation for that skill. I

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<v Speaker 1>don't possess it myself. And so while it might take

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<v Speaker 1>the typical builder eighty hours to put together one of

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<v Speaker 1>these devices, for me it would be forever because I'd

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<v Speaker 1>spent about five hours trying to put together and then

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<v Speaker 1>give up. So, in order to not limit themselves to

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<v Speaker 1>that hardcore audience of makers and hobbyists, they had already

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<v Speaker 1>started planning out building fully assembled printers in the future.

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<v Speaker 1>On the company side of things, Maker Bots seemed to

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<v Speaker 1>be a really interesting place to work. According to an

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<v Speaker 1>article and Wired titled the three D Printing Revolution that wasn't.

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<v Speaker 1>Employees worked at Maker Bought Not to get rich quick

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<v Speaker 1>by being part of an early start up with hopes

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<v Speaker 1>that some other company was going to do a big

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<v Speaker 1>buy out and then you have a nice payout as

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<v Speaker 1>your company got acquired. Instead, they were part of the

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<v Speaker 1>company because they believed in the company's mission, which was

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<v Speaker 1>tied closely with the rep rap philosophy of disrupting manufacturing

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<v Speaker 1>by putting it in the hands of the common consumer.

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<v Speaker 1>The company culture was loose and jobs were pretty vaguely defined. Apparently,

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<v Speaker 1>you might be helping people pack kits for shipping one day,

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<v Speaker 1>and then the next day you're tweaking product design on

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<v Speaker 1>the latest version of your hardware. In that article, a

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<v Speaker 1>former Maker Bought employee named Matt Griffin said there was

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<v Speaker 1>no real formal structure to the company in those early days.

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<v Speaker 1>He said, no one was really fooling themselves. They all

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<v Speaker 1>knew that ultimately that was unsustainable from a business perspective,

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<v Speaker 1>that they were going to have a have a more

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<v Speaker 1>formal organizational strategy moving forward. But in the early days

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<v Speaker 1>of Maker Bought, the important thing was just do whatever

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<v Speaker 1>needs to be done at that given time, and then

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<v Speaker 1>worry about the next thing after you're finished with the

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<v Speaker 1>first thing. Within the first year of being in business,

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<v Speaker 1>the company had made six hundred cupcakes, sea and seat kits,

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<v Speaker 1>and according to Bree Pettis, one of the co founders

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<v Speaker 1>of Maker Bought, the cost of all the parts for

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<v Speaker 1>the kids added up to about six hundred fifty dollars.

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<v Speaker 1>They were selling them for seven fifty dollars unassembled, so

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<v Speaker 1>there was just a hundred dollars more than what it

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<v Speaker 1>costs to get the parts together in the first place.

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<v Speaker 1>And that's before you start figuring in stuff like labor

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<v Speaker 1>of putting all the pieces together, putting them in boxes,

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<v Speaker 1>shipping them out so razor thin margins, you might say,

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<v Speaker 1>a bit more than a year and a half after

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<v Speaker 1>Zack Smith, Adam Mayor, and Bree Pettis had launched the company,

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<v Speaker 1>they introduced their second model of three D printer. This

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<v Speaker 1>one was called the thing oh Matic. Like the Cupcakes

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<v Speaker 1>C and CEE, you could buy this printer as a

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<v Speaker 1>kit or you could have it fully assembled. The kit

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<v Speaker 1>cost one thou fifty dollars and the fully assembled printer

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<v Speaker 1>was hundred, making it the same cost as the fully

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<v Speaker 1>assembled cupcake CE and C had been when it first debuted.

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<v Speaker 1>The thing Amatic had some new features. For one thing,

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<v Speaker 1>it could print multiple objects in one print job, as

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<v Speaker 1>long as those objects didn't overlap on the print bed.

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<v Speaker 1>This was thanks to a new technology called the automated

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<v Speaker 1>build Platform. Maker Bot designer Charles Packs had created that

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<v Speaker 1>feat sure. The build platform had a heated surface and

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<v Speaker 1>was mounted on a belt system underneath the platform. So

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<v Speaker 1>this belt system could actually move the physical location of

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<v Speaker 1>the platform underneath the extruder, so the printer would you know,

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<v Speaker 1>print out the first object, then the platform could move

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<v Speaker 1>out from under the first object. The printer could print

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<v Speaker 1>out an additional object on that same building surface, so

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<v Speaker 1>you could print multiple things at once. You didn't have

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<v Speaker 1>to manually remove each piece as soon as it was finished.

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<v Speaker 1>As long as you could arrange the two objects to

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<v Speaker 1>be printed on sufficiently far enough parts on the platform

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<v Speaker 1>and not have the extruder, you know, mess up whatever

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<v Speaker 1>it was you did just printed. That was a real danger.

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<v Speaker 1>If you didn't take that into account, then you could

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<v Speaker 1>have a print job, if it's tall enough, get to

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<v Speaker 1>a point where it would come into contact with the

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<v Speaker 1>extruder as it's trying to print the second print job,

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<v Speaker 1>and everything would mess up. So you had to pay

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<v Speaker 1>attention to your designs. The system also included a brush

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<v Speaker 1>to clean off the nozzle between the print jobs. This

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<v Speaker 1>was important because otherwise the plastic could kind of gum

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<v Speaker 1>up and cause printing errors. If you ever used a

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<v Speaker 1>hot glue gun, it's kind of like that. The automated

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<v Speaker 1>build platform was one of the upgrades that was originally

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<v Speaker 1>created for the old Cupcake C and C, but now

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<v Speaker 1>it was coming in as an optional feature on the

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<v Speaker 1>thing Amatic. But this new printer also had a slightly

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<v Speaker 1>smaller build volume than the cupcake that one as you

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<v Speaker 1>as I mentioned earlier, could produce an object that was

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<v Speaker 1>four inches long, four inches wide, and five inches tall,

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<v Speaker 1>but the thing o Matic would knock that down to

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<v Speaker 1>just be four inches in every direction, so it couldn't

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<v Speaker 1>be quite as tall as the Cupcake CE and C

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<v Speaker 1>could manage. Maker Bought unveiled the thing Omatic at the

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<v Speaker 1>twenty ten Maker Fair New York event. Like the Cupcake

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<v Speaker 1>C and C, this printer was an open source hardware

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<v Speaker 1>device and was registered under the canow License, which gave

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<v Speaker 1>users the opportunity to alter the design and make adjustments

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<v Speaker 1>or improvements. And like the Cupcake C and C, Maker

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<v Speaker 1>but would incorporate some of those designs into future versions

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<v Speaker 1>of the printer itself, so the design of the thing

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<v Speaker 1>Amatic changed with the community's input. The open source philosophy

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<v Speaker 1>was continuing to pay off, and that it was fueling

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<v Speaker 1>innovation at an incredibly rapid pace. The cool thing about

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<v Speaker 1>this is that you know three D printers were meant

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<v Speaker 1>to help with innovation, and that they would allow you

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<v Speaker 1>to rapidly prototype stuff. You could come up with a

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<v Speaker 1>design for a product, print out your design, test it

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<v Speaker 1>to see if it makes sense, and if it doesn't,

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<v Speaker 1>you could go right back to the drawing board and

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<v Speaker 1>lose very little time in the process. Well, not only

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<v Speaker 1>could the printer do that, but the fact that it

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<v Speaker 1>was open source meant that people could rapidly prototype the

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<v Speaker 1>printer itself, changing it. So the very thing that the

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<v Speaker 1>printer did could also contr ribute to the printer's improvement

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<v Speaker 1>over time. I thought that was kind of a cool

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<v Speaker 1>recursive quality of three D printers. With maker Bought in particular,

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<v Speaker 1>the community of maker bot owners and the thing of

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<v Speaker 1>Verse users, that website where everyone was putting their designs.

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<v Speaker 1>They were happy to show off their creations and they

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<v Speaker 1>were happy to benefit from the designs made by other people.

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<v Speaker 1>Maker Bott was seeing a big benefit as that from

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<v Speaker 1>that as well, both as it continued to encourage a

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<v Speaker 1>really enthusiastic base of users and also to directly benefit

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<v Speaker 1>from their designs by incorporating them into the future versions

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<v Speaker 1>of the maker Bot printers. But there was a downside

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<v Speaker 1>to that approach as well. And the downside was that

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<v Speaker 1>because the hardware and the software were open source and

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<v Speaker 1>openly available to look at, other people or companies could

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<v Speaker 1>use those designs to make their own three D printers

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<v Speaker 1>and compete against maker Bot within that market. Now, in

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<v Speaker 1>the early days, that wasn't really a big problem because

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<v Speaker 1>maker Bot commanded about a quarter of the market in

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<v Speaker 1>three D printing in those early years, but the overall

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<v Speaker 1>market was also really really small. The small markets provide

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<v Speaker 1>very little incentive for competitors. Why would you jump into

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<v Speaker 1>a tiny market it has very few customers there, and

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<v Speaker 1>especially if one is already dominated by an established company,

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<v Speaker 1>it could be very difficult to make any headway. But

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<v Speaker 1>as the three D printer market would grow, that would

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<v Speaker 1>become a bigger problem. Now throughout and eleven, maker Butt

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<v Speaker 1>continued selling Cupcake and Thingo matic kits. Behind the scenes

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<v Speaker 1>teams were working on the next generation of maker butt devices,

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<v Speaker 1>and they also secured ten million dollars in venture capital

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<v Speaker 1>funding in August. Some people say that that was the

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<v Speaker 1>beginning of potentially serious trouble because the capitalist of venture

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<v Speaker 1>capitalist is making an investment, and an investment means you

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<v Speaker 1>want to see a return. You want to see some

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<v Speaker 1>profit from that investment. Around that time, the company was

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<v Speaker 1>also star to get attention from mainstream media, not just

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<v Speaker 1>the tech and geek journals out there, but mainstream journals

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<v Speaker 1>things like you know, Rolling Stone magazine or or the

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<v Speaker 1>Colbart rapport. By the fall of two thousand eleven, maker

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<v Speaker 1>Bot had around seventy employees and had added another office

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<v Speaker 1>to accommodate the growth the company was going through. In

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<v Speaker 1>early January, the company unveiled a new printer called the Replicator.

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<v Speaker 1>This would not only be the most ambitious printer to date,

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<v Speaker 1>it would also mark the pivotal moment when maker Bot

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<v Speaker 1>would shift away from that open source philosophy the company

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<v Speaker 1>had embraced. So the Replicator was open source. It had

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<v Speaker 1>not quite abandoned this yet, but it was the beginning

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<v Speaker 1>of the end. The Replicator included dual extruders, which meant

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<v Speaker 1>that for the first time, maker bot makers could print

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<v Speaker 1>in two different colors of plastic for the same build.

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<v Speaker 1>You could have a filament of plastic of one color

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<v Speaker 1>are going to one extruder, and a filament of plastic

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<v Speaker 1>of a different color going to the second extruder, and

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<v Speaker 1>then based upon your design, that would tell the printer

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<v Speaker 1>which plastic to use for any given moment while it

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<v Speaker 1>was building up those layers, so you could have a

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<v Speaker 1>two tone object when you were done, whatever two colors

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<v Speaker 1>you wanted. Really, it also increased the build size, so

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<v Speaker 1>you can build much larger objects than you could before.

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<v Speaker 1>Now users could print stuff that was two twenty five

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<v Speaker 1>millimeters long, one millimeters wide and one millimeters tall, or

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<v Speaker 1>about eight point nine inches by five point seven inches

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<v Speaker 1>by six point one inches. The Replicator was the first

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<v Speaker 1>maker bought printer that was also sold fully assembled. There

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<v Speaker 1>was no kit option anymore. So this was again maker

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<v Speaker 1>bots moved to try and and tap into a potentially

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<v Speaker 1>larger customer base because now they could sell to people

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<v Speaker 1>who weren't who didn't feel confident they could put such

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<v Speaker 1>a thing together. The initial price for the Replicator was

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<v Speaker 1>one thousand, seven fifty dollars, which is a princely sum,

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<v Speaker 1>to be sure, but still a fraction of what most

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<v Speaker 1>three D printers would cost. Even in the pro sumer market,

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<v Speaker 1>you're typically looking at devices that were in the tens

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<v Speaker 1>of thousands of dollars. There were some competitors that were

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<v Speaker 1>coming out with very cheap three D printers around the

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<v Speaker 1>same time, um, but they were not at the same

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<v Speaker 1>level of quality or name recognition as maker But. The

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<v Speaker 1>replicator had a few quality problems of its own, including

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<v Speaker 1>vulnerabilities to sack electricity. There were reports that if you

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<v Speaker 1>were to put in a card containing designs into the

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<v Speaker 1>maker Butt replicator and you had a static charge on

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<v Speaker 1>that card, it could cause something to pop, and then

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<v Speaker 1>you would have an uh, non working replicator. And the

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<v Speaker 1>company couldn't afford to just ignore those problems. There was

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<v Speaker 1>also increasing pressure rising from competitors, and so maker Bot

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<v Speaker 1>was at work on the successor to the replicator, which

0:13:10.880 --> 0:13:14.440
<v Speaker 1>would come out less than a year after the replicator debuted,

0:13:14.920 --> 0:13:17.240
<v Speaker 1>and that would be the first three D printer maker

0:13:17.280 --> 0:13:20.720
<v Speaker 1>Bot would offer that would at least be partly proprietary

0:13:20.840 --> 0:13:24.880
<v Speaker 1>in nature and not entirely open source, the open source

0:13:24.880 --> 0:13:27.960
<v Speaker 1>philosophy would no longer become the guiding principle for the

0:13:27.960 --> 0:13:31.240
<v Speaker 1>company's efforts, and it would mean lots of big changes.

0:13:31.360 --> 0:13:33.760
<v Speaker 1>I'll explain more in a moment, but first let's take

0:13:33.800 --> 0:13:44.280
<v Speaker 1>a quick break to thank our sponsor. So the original

0:13:44.320 --> 0:13:47.679
<v Speaker 1>Replicator was still an open source hardware project, but it

0:13:47.679 --> 0:13:50.440
<v Speaker 1>would prove to be the last of those, and it

0:13:50.520 --> 0:13:53.840
<v Speaker 1>was in part the reason why Zach Smith would end

0:13:53.920 --> 0:13:58.520
<v Speaker 1>up leaving maker Butt, or being forced to leave maker

0:13:58.559 --> 0:14:01.720
<v Speaker 1>Butt might be the way to put it so. Earlier

0:14:01.760 --> 0:14:06.440
<v Speaker 1>in two thousand eleven, before the Replicator had debut, they

0:14:06.480 --> 0:14:09.720
<v Speaker 1>actually had a totally different plan to move forward, and

0:14:09.760 --> 0:14:13.160
<v Speaker 1>that plan was to create a super secret, low cost,

0:14:13.440 --> 0:14:16.000
<v Speaker 1>pre assembled maker Butt that would be cheap enough for

0:14:16.040 --> 0:14:19.360
<v Speaker 1>the average consumer, and they wanted to aim for a

0:14:19.400 --> 0:14:22.080
<v Speaker 1>price tag that would make it about as expensive as

0:14:22.120 --> 0:14:25.280
<v Speaker 1>your typical new video game console, so we're talking like

0:14:25.680 --> 0:14:28.400
<v Speaker 1>five hundred or six hundred dollars. That was a really

0:14:28.440 --> 0:14:30.920
<v Speaker 1>ambitious goal and it was something that they didn't think

0:14:30.920 --> 0:14:34.360
<v Speaker 1>they could manage to do. Working just out of the

0:14:34.440 --> 0:14:38.800
<v Speaker 1>United States. They called this project the Mass market maker

0:14:38.880 --> 0:14:44.360
<v Speaker 1>Butt Project or MMM triple M. So to achieve this goal,

0:14:44.880 --> 0:14:47.640
<v Speaker 1>Zack Smith took a small team of engineers and he

0:14:47.680 --> 0:14:51.040
<v Speaker 1>went to China to set up a manufacturing strategy that

0:14:51.040 --> 0:14:54.800
<v Speaker 1>would meet their needs because manufacturing in China is way

0:14:54.920 --> 0:14:57.520
<v Speaker 1>less expensive than in the United States, even when you

0:14:57.560 --> 0:15:00.520
<v Speaker 1>factor in international shipping, you'd be saving a lot more

0:15:00.560 --> 0:15:04.000
<v Speaker 1>money per unit. So in the fall of two thousand eleven,

0:15:04.040 --> 0:15:07.760
<v Speaker 1>while Smith is in China working on this, Bree Pettis

0:15:07.760 --> 0:15:10.640
<v Speaker 1>back in the United States was getting impatient. He wanted

0:15:10.680 --> 0:15:13.200
<v Speaker 1>to have something to show off at c e S.

0:15:13.240 --> 0:15:16.880
<v Speaker 1>He had recently received quite a bit of money in

0:15:16.960 --> 0:15:21.040
<v Speaker 1>venture capital for for maker Bot, and he felt like

0:15:21.120 --> 0:15:24.680
<v Speaker 1>the updates to the maker Butt, the mass market maker

0:15:24.720 --> 0:15:29.800
<v Speaker 1>bot device, were sporadic and not nearly giving him enough

0:15:29.840 --> 0:15:33.720
<v Speaker 1>progress each time he was getting one. So he decided

0:15:33.760 --> 0:15:37.320
<v Speaker 1>to put his Brooklyn team of engineers on a new

0:15:37.360 --> 0:15:40.040
<v Speaker 1>task to develop a brand new printer in time for

0:15:40.160 --> 0:15:42.840
<v Speaker 1>ce S, which again happens in January, so it was

0:15:42.880 --> 0:15:48.480
<v Speaker 1>a super condensed timeline now. Eventually, Bree Pettis decided to

0:15:48.520 --> 0:15:52.600
<v Speaker 1>go with the New York based design over the one

0:15:52.680 --> 0:15:55.840
<v Speaker 1>that Zack Smith and his team were working on in China,

0:15:56.040 --> 0:15:58.600
<v Speaker 1>and it was a much more expensive approach because it

0:15:58.640 --> 0:16:03.280
<v Speaker 1>was nearly dollars. It was one thousand, seven fifty bucks.

0:16:03.320 --> 0:16:07.120
<v Speaker 1>So that was a reversal on that original strategy they

0:16:07.160 --> 0:16:09.440
<v Speaker 1>had leading up to c S tw twelve, where they

0:16:09.440 --> 0:16:12.400
<v Speaker 1>were going to try and make a really affordable three

0:16:12.480 --> 0:16:14.920
<v Speaker 1>D printer for the average person. So the device the

0:16:14.920 --> 0:16:18.000
<v Speaker 1>company showed off was more of a pro sumer device,

0:16:18.120 --> 0:16:20.800
<v Speaker 1>something that someone who was going to use it for

0:16:20.840 --> 0:16:23.800
<v Speaker 1>professional purposes might be able to spend that kind of money,

0:16:23.800 --> 0:16:26.400
<v Speaker 1>But your average consumer wasn't going to drop nearly two

0:16:26.440 --> 0:16:30.920
<v Speaker 1>thousand dollars on a three D printer that they barely

0:16:30.960 --> 0:16:34.960
<v Speaker 1>knew how it worked. In April two thou twelve, Maker

0:16:35.040 --> 0:16:39.360
<v Speaker 1>Butt chose formally to shut down its China operation entirely.

0:16:40.160 --> 0:16:44.600
<v Speaker 1>Zack Smith was understandably frustrated. He really found himself at

0:16:44.600 --> 0:16:49.240
<v Speaker 1>odds with Bree Pettis. They had uh strong disagreements on

0:16:49.280 --> 0:16:53.240
<v Speaker 1>the direction of the company. And according to Zack Smith

0:16:53.280 --> 0:16:54.920
<v Speaker 1>and and in his own words, he said he was

0:16:54.960 --> 0:16:58.680
<v Speaker 1>forced out of the company he had co founded because

0:16:59.320 --> 0:17:02.360
<v Speaker 1>his vision of where the company should go was uh

0:17:02.480 --> 0:17:06.040
<v Speaker 1>not compatible with where Bree Pettis went the company to go.

0:17:06.080 --> 0:17:08.960
<v Speaker 1>And Bree was in the role of CEO at this point.

0:17:09.520 --> 0:17:13.520
<v Speaker 1>By mid two thousand twelve, Zack Smith would leave maker Bot.

0:17:13.560 --> 0:17:16.320
<v Speaker 1>He ended up traveling back to China, and he was

0:17:16.359 --> 0:17:20.399
<v Speaker 1>fascinated at the bustling manufacturing industry over in China, and

0:17:20.440 --> 0:17:23.840
<v Speaker 1>also he was really excited because he would have access

0:17:23.880 --> 0:17:28.080
<v Speaker 1>to very cheap parts there. He said, the language barrier

0:17:28.240 --> 0:17:30.639
<v Speaker 1>was a bit of a challenge, but he could get

0:17:30.680 --> 0:17:32.800
<v Speaker 1>all the different stuff you would need to build the

0:17:32.840 --> 0:17:35.880
<v Speaker 1>kind of devices he liked building for much less money

0:17:35.880 --> 0:17:37.600
<v Speaker 1>than it would cost him in the United States. So

0:17:37.640 --> 0:17:40.400
<v Speaker 1>he lived in China for a while. He would continue

0:17:40.440 --> 0:17:43.119
<v Speaker 1>working with the rap Rap project, but he chose to

0:17:43.160 --> 0:17:46.320
<v Speaker 1>divorce himself entirely from maker Butt, so he was the

0:17:46.400 --> 0:17:49.920
<v Speaker 1>first of the three co founders to leave the company. Now,

0:17:49.960 --> 0:17:53.040
<v Speaker 1>according to the interviews and articles I could find from

0:17:53.080 --> 0:17:57.000
<v Speaker 1>around this particular time in maker bots history, Bree had

0:17:57.040 --> 0:17:59.040
<v Speaker 1>sort of emerged at this point as the face of

0:17:59.080 --> 0:18:02.600
<v Speaker 1>the company out of the scessity. He had already achieved

0:18:02.640 --> 0:18:05.200
<v Speaker 1>a following in the maker community because of his work

0:18:05.240 --> 0:18:09.240
<v Speaker 1>with make magazine, so it seemed like a natural transition

0:18:09.280 --> 0:18:11.639
<v Speaker 1>to make him sort of the voice and the face

0:18:12.240 --> 0:18:15.719
<v Speaker 1>of maker Bot as well, and some would even compare

0:18:15.800 --> 0:18:18.600
<v Speaker 1>him saying he was the Steve Jobs of maker Bot.

0:18:19.040 --> 0:18:21.280
<v Speaker 1>Pettis himself said he really would prefer to be the

0:18:21.320 --> 0:18:24.720
<v Speaker 1>Steve Wozniak of maker Button. If you know your Apple history,

0:18:24.760 --> 0:18:27.520
<v Speaker 1>you know what the difference is there. It made two

0:18:27.520 --> 0:18:30.600
<v Speaker 1>thousand twelve. As maker Bot engineers were working on the

0:18:30.640 --> 0:18:35.399
<v Speaker 1>replicator to design in secret, the company relocated to the

0:18:35.480 --> 0:18:39.760
<v Speaker 1>Metro Tech Center in Brooklyn, a much larger space. They

0:18:39.760 --> 0:18:42.399
<v Speaker 1>now had a hundred twenty five employees, and then in

0:18:42.440 --> 0:18:45.800
<v Speaker 1>August the nail in the coffin for maker Bots open

0:18:45.880 --> 0:18:48.960
<v Speaker 1>source approach arrived in the form of a Kickstarter project

0:18:49.359 --> 0:18:53.280
<v Speaker 1>called the Tangabot. Now the Tangentbot was proposed by a

0:18:53.280 --> 0:18:57.320
<v Speaker 1>guy named Matt Strong. The Tangibot was essentially a maker

0:18:57.400 --> 0:19:02.000
<v Speaker 1>Bot clone. Strong's plan was to mass produce uh these

0:19:02.080 --> 0:19:06.320
<v Speaker 1>these replicator clones in China to bring down the costs

0:19:06.480 --> 0:19:09.680
<v Speaker 1>and sell the tangent Bot at a significant discount in

0:19:09.720 --> 0:19:13.359
<v Speaker 1>the United States. So in theory, they would be indistinguishable

0:19:13.480 --> 0:19:16.879
<v Speaker 1>from the replicator printers because he could use all the

0:19:16.880 --> 0:19:19.639
<v Speaker 1>open source information. They would work on the same software,

0:19:20.040 --> 0:19:23.160
<v Speaker 1>they would follow the same hardware design. They would print

0:19:23.200 --> 0:19:25.879
<v Speaker 1>stuff from the finger verse just as well as a

0:19:25.920 --> 0:19:30.320
<v Speaker 1>replicator could and this was all possible because all of

0:19:30.359 --> 0:19:34.840
<v Speaker 1>that information was open source, so there was nothing legally

0:19:35.080 --> 0:19:39.440
<v Speaker 1>stopping him from doing this. However, in the open source community,

0:19:39.560 --> 0:19:43.800
<v Speaker 1>it's considered pretty taboo to clone someone else's stuff and

0:19:43.840 --> 0:19:45.960
<v Speaker 1>then to sell it as your own, even if you're

0:19:45.960 --> 0:19:49.439
<v Speaker 1>just attributing the other person. That's not considered super cool.

0:19:49.800 --> 0:19:53.560
<v Speaker 1>It's not in keeping with the spirit of the community,

0:19:53.640 --> 0:19:57.320
<v Speaker 1>and the maker butt community largely rallied behind maker butt,

0:19:57.680 --> 0:20:00.280
<v Speaker 1>even in the wake of the quality problems that the

0:20:00.320 --> 0:20:05.560
<v Speaker 1>replicator had suffered earlier that year. But Pettis now had

0:20:05.560 --> 0:20:10.200
<v Speaker 1>a strong argument against open source in general. Someone had

0:20:10.440 --> 0:20:12.960
<v Speaker 1>outright said they were going to make the same product

0:20:13.040 --> 0:20:16.720
<v Speaker 1>that his company was making, but sell it for less money.

0:20:16.760 --> 0:20:20.000
<v Speaker 1>So when maker bot announced the replicator to the company

0:20:20.000 --> 0:20:24.199
<v Speaker 1>indicated that some of this technology was going to be proprietary,

0:20:24.320 --> 0:20:27.480
<v Speaker 1>many in the maker community felt this was a slap

0:20:27.520 --> 0:20:30.399
<v Speaker 1>in the face of the people who had supported maker

0:20:30.440 --> 0:20:33.400
<v Speaker 1>bought in its early days. It was an outright betrayal.

0:20:34.280 --> 0:20:38.520
<v Speaker 1>Worse yet, there was a suspicion that maker bot was

0:20:38.560 --> 0:20:43.600
<v Speaker 1>going to incorporate improvements and designs that community members had

0:20:43.640 --> 0:20:47.520
<v Speaker 1>created as part of thingo Verse, that the stuff that

0:20:47.600 --> 0:20:49.840
<v Speaker 1>was going to be a replicator too, would be coming

0:20:49.920 --> 0:20:54.000
<v Speaker 1>straight from the people who were going to get uh

0:20:54.359 --> 0:20:57.040
<v Speaker 1>rolled over by the fact that it was going to

0:20:57.160 --> 0:21:00.639
<v Speaker 1>go with a proprietary approach. They weren't going to necessarily

0:21:01.080 --> 0:21:05.199
<v Speaker 1>have their contributions attributed. They would see no benefit from it.

0:21:05.320 --> 0:21:08.119
<v Speaker 1>And whereas they had been happy for Maker but to

0:21:08.200 --> 0:21:14.320
<v Speaker 1>succeed on in part because of their contributions earlier, that

0:21:14.400 --> 0:21:16.280
<v Speaker 1>was with the understanding that they were all part of

0:21:16.280 --> 0:21:19.919
<v Speaker 1>the same family and everything was transparent. Now with a

0:21:19.960 --> 0:21:23.600
<v Speaker 1>proprietary approach, stuff is being hidden away from the very

0:21:23.600 --> 0:21:26.359
<v Speaker 1>community that had made this company possible. So they saw

0:21:26.359 --> 0:21:29.680
<v Speaker 1>it as a stab in the back. Unlike the replicator,

0:21:30.040 --> 0:21:34.040
<v Speaker 1>the replicator too had only a single extruder, so you

0:21:34.080 --> 0:21:37.919
<v Speaker 1>were back to printing in just a one color. Additionally,

0:21:37.960 --> 0:21:40.560
<v Speaker 1>it could only print in p L a thermoplastic. It

0:21:40.600 --> 0:21:44.480
<v Speaker 1>could not do a BS. The replicator to increased the

0:21:44.520 --> 0:21:48.760
<v Speaker 1>build area to two five millimeters by one three millimeters

0:21:48.800 --> 0:21:53.680
<v Speaker 1>to one millimeters, or eleven point two inches by six

0:21:53.720 --> 0:21:57.400
<v Speaker 1>inches by six point one inches. Essentially, layers of plastic

0:21:57.440 --> 0:22:01.080
<v Speaker 1>could be as thin as one hundred micrometer. A micrometer,

0:22:01.160 --> 0:22:03.560
<v Speaker 1>by the way, is a millionth of a meter and

0:22:04.040 --> 0:22:06.919
<v Speaker 1>that would improve the resolution of the print jobs. It's

0:22:06.960 --> 0:22:09.440
<v Speaker 1>kind of like the dots per inch metric we would

0:22:09.520 --> 0:22:12.040
<v Speaker 1>use for your standard run of the mill printers, or

0:22:12.160 --> 0:22:14.440
<v Speaker 1>the pixel count we would use in the resolution of

0:22:14.480 --> 0:22:17.320
<v Speaker 1>an image. The thinner the layers in a print job,

0:22:17.760 --> 0:22:21.600
<v Speaker 1>the smoother the transition can be from layer to layer overall,

0:22:21.720 --> 0:22:23.560
<v Speaker 1>So if you're printing an object that has a lot

0:22:23.600 --> 0:22:28.040
<v Speaker 1>of curved surfaces, the result is a more smooth curved line.

0:22:28.520 --> 0:22:31.240
<v Speaker 1>With thicker layers, you get more of a kind of

0:22:31.320 --> 0:22:35.280
<v Speaker 1>jagged step transition between one layer and the next. You

0:22:35.280 --> 0:22:37.719
<v Speaker 1>can really feel it. It feels like a series of ridges.

0:22:38.680 --> 0:22:42.199
<v Speaker 1>Some of the proprietary elements included the metal case for

0:22:42.240 --> 0:22:44.760
<v Speaker 1>the replicator to It was the first time maker bot

0:22:44.840 --> 0:22:47.520
<v Speaker 1>was offering up a printer that had a metal case

0:22:47.600 --> 0:22:51.320
<v Speaker 1>as opposed to their traditional balsa would cases that had

0:22:51.320 --> 0:22:55.840
<v Speaker 1>been the the the casing for the previous printers. And

0:22:56.080 --> 0:22:59.199
<v Speaker 1>they also had some proprietary software, so it wasn't just

0:22:59.280 --> 0:23:03.159
<v Speaker 1>the hardware that is no longer fully open source. The

0:23:03.160 --> 0:23:07.680
<v Speaker 1>software followed suit. The company also showed off a replicator

0:23:07.680 --> 0:23:12.679
<v Speaker 1>to X, the two experimental replicator that added in some

0:23:12.720 --> 0:23:15.399
<v Speaker 1>of the features that the Replicator too was missing like

0:23:15.520 --> 0:23:18.359
<v Speaker 1>it had the dual extruder so you could print in

0:23:18.359 --> 0:23:21.480
<v Speaker 1>two colors again, and also a heated platform to enable

0:23:21.520 --> 0:23:24.760
<v Speaker 1>a B s printing, so you had essentially two different

0:23:25.520 --> 0:23:28.920
<v Speaker 1>tiers of the replicator to The Replicator Too came out

0:23:28.960 --> 0:23:33.280
<v Speaker 1>in September, and by that time Smith had been long gone.

0:23:33.320 --> 0:23:36.080
<v Speaker 1>He had left the company a few months earlier. Adam Mayor,

0:23:36.200 --> 0:23:39.119
<v Speaker 1>the other co founder, along with Brief Pettis, would stay

0:23:39.200 --> 0:23:42.520
<v Speaker 1>on with the company until October two thousand twelve. Now

0:23:42.520 --> 0:23:47.440
<v Speaker 1>what led Mayor to leave, I actually don't know. I'm

0:23:47.480 --> 0:23:50.480
<v Speaker 1>not certain what led to his departure from the company.

0:23:50.520 --> 0:23:52.919
<v Speaker 1>It might have been a similar disagreement with Pettis over

0:23:52.960 --> 0:23:57.200
<v Speaker 1>the direction of the company, the abandoning of the open

0:23:57.200 --> 0:24:00.080
<v Speaker 1>source philosophy. I don't know for sure, Or may be

0:24:00.200 --> 0:24:03.119
<v Speaker 1>he just wanted to do something different. There's precious little

0:24:03.160 --> 0:24:07.200
<v Speaker 1>published about his decision. But whatever the reason, by October

0:24:07.200 --> 0:24:11.320
<v Speaker 1>two twelve, Maker Butt was a very different company. They

0:24:11.320 --> 0:24:13.920
<v Speaker 1>had venture capitalists who were waiting to see a return

0:24:13.920 --> 0:24:16.359
<v Speaker 1>on their investment. You had two out of the three

0:24:16.359 --> 0:24:19.760
<v Speaker 1>original co founders gone. They were shifting from open source

0:24:19.800 --> 0:24:23.080
<v Speaker 1>to something at least partially closed off. And their community,

0:24:23.160 --> 0:24:26.320
<v Speaker 1>which had been so supportive, was starting to fragment, and

0:24:26.359 --> 0:24:28.960
<v Speaker 1>a lot of people were turning against the company. That

0:24:29.040 --> 0:24:33.280
<v Speaker 1>fragmentation would spread to think of Verse. The site updated

0:24:33.320 --> 0:24:37.000
<v Speaker 1>its terms of service, which raised questions about attribution. There

0:24:37.040 --> 0:24:40.600
<v Speaker 1>was a worry that if you were to upload your

0:24:40.640 --> 0:24:43.160
<v Speaker 1>designs to think of Verse, that maker butt could make

0:24:43.359 --> 0:24:46.320
<v Speaker 1>use of your designs and not even a tribute you

0:24:46.440 --> 0:24:49.320
<v Speaker 1>for it. And originally it seemed pretty clear that if

0:24:49.320 --> 0:24:51.320
<v Speaker 1>you authored a work on thing of Verse, you would

0:24:51.400 --> 0:24:54.520
<v Speaker 1>get credit, and you might share a design with everybody

0:24:54.560 --> 0:24:56.399
<v Speaker 1>else and they might all be free to use it,

0:24:56.440 --> 0:24:58.199
<v Speaker 1>but it was with the understanding that you would at

0:24:58.280 --> 0:25:01.280
<v Speaker 1>least get credit for that design. The updated terms of

0:25:01.320 --> 0:25:04.320
<v Speaker 1>service through that into question, and there was a long

0:25:04.359 --> 0:25:07.240
<v Speaker 1>time before maker bot had any answers to people who

0:25:07.240 --> 0:25:10.119
<v Speaker 1>are raising questions about that, and so some people began

0:25:10.119 --> 0:25:12.639
<v Speaker 1>to move to put new designs on a different site

0:25:12.720 --> 0:25:16.239
<v Speaker 1>rather than risk having their work appropriated by MakerBot. Then,

0:25:16.280 --> 0:25:18.800
<v Speaker 1>whether that was a real possibility or not, the perception

0:25:18.960 --> 0:25:21.439
<v Speaker 1>was that maker bot was going to push into this

0:25:21.520 --> 0:25:24.320
<v Speaker 1>closed ecosystem and you wouldn't be able to tell. So

0:25:24.400 --> 0:25:28.520
<v Speaker 1>people began to abandon finger Verse. Not everybody but some

0:25:28.600 --> 0:25:32.359
<v Speaker 1>of the more passionate community members were Pettis, for his part,

0:25:32.800 --> 0:25:36.479
<v Speaker 1>would defend this decision to move to this sort of

0:25:36.520 --> 0:25:39.879
<v Speaker 1>closed approach. He argued that the open source approach was

0:25:40.000 --> 0:25:42.680
<v Speaker 1>unsustainable in the long run, that if a company were

0:25:42.720 --> 0:25:46.199
<v Speaker 1>to keep doing that, it would eventually go out of

0:25:46.200 --> 0:25:48.840
<v Speaker 1>business as a result. And so he said, if my

0:25:48.920 --> 0:25:52.439
<v Speaker 1>goal is to create three D printers for everyone, you know,

0:25:52.560 --> 0:25:55.679
<v Speaker 1>something that everyone can afford and everyone can use, I

0:25:55.840 --> 0:25:59.600
<v Speaker 1>have to change the way we do business. Otherwise we

0:25:59.640 --> 0:26:02.640
<v Speaker 1>will be run out of business and I'll never achieve

0:26:02.720 --> 0:26:07.080
<v Speaker 1>that goal. Anyway, that was not the end of the

0:26:07.080 --> 0:26:10.720
<v Speaker 1>problems with Maker Butt. We'll talk about some more challenges

0:26:10.760 --> 0:26:13.359
<v Speaker 1>the company faced in the following years in just a moment.

0:26:13.359 --> 0:26:16.120
<v Speaker 1>But first let's take another quick break to thank our sponsor.

0:26:23.720 --> 0:26:28.520
<v Speaker 1>In June two thousand, a company called Stratusis came knocking

0:26:28.880 --> 0:26:32.679
<v Speaker 1>with an eye towards acquiring Maker Butt. Stratusis had been

0:26:32.680 --> 0:26:35.800
<v Speaker 1>around since nine and it was also in the additive

0:26:35.800 --> 0:26:39.879
<v Speaker 1>manufacturing and three D printing business. The company had carved

0:26:39.880 --> 0:26:44.439
<v Speaker 1>out a profitable space in the rapid prototyping industry. The deal.

0:26:45.040 --> 0:26:47.880
<v Speaker 1>The acquisition deal was for more than four million dollars

0:26:47.920 --> 0:26:50.359
<v Speaker 1>with an additional two hundred million dollars or so in

0:26:50.400 --> 0:26:53.600
<v Speaker 1>performance based earnouts. Some of the folks in the maker

0:26:53.640 --> 0:26:56.760
<v Speaker 1>community viewed this as yet another sign that maker Butt had,

0:26:56.800 --> 0:27:01.159
<v Speaker 1>in their minds sold out. Not at first, MakerBot was

0:27:01.680 --> 0:27:04.639
<v Speaker 1>on the expansion again. They started hiring more people, and

0:27:04.640 --> 0:27:07.720
<v Speaker 1>they started designing the next phase of three D printers,

0:27:07.760 --> 0:27:10.720
<v Speaker 1>and these would include some new features, some of which

0:27:10.840 --> 0:27:15.200
<v Speaker 1>might have seemed a little excessive or maybe unimportant. Had

0:27:15.240 --> 0:27:18.280
<v Speaker 1>stuff like WiFi capability, that kind of thing. But meanwhile,

0:27:18.480 --> 0:27:21.439
<v Speaker 1>there was still this growing perception that MakerBot needed to

0:27:21.440 --> 0:27:24.439
<v Speaker 1>produce some printers at the lower end of the market,

0:27:24.560 --> 0:27:27.520
<v Speaker 1>stuff that was more affordable for your average consumer, like

0:27:28.040 --> 0:27:30.760
<v Speaker 1>what the mass market maker Bot was supposed to be.

0:27:31.440 --> 0:27:34.600
<v Speaker 1>It was stuff that MakerBot just hadn't managed to do yet. Now,

0:27:34.640 --> 0:27:37.919
<v Speaker 1>according to that article and Wired that I mentioned earlier

0:27:37.960 --> 0:27:41.000
<v Speaker 1>in this episode, at ce S two thousand and fourteen,

0:27:41.400 --> 0:27:45.199
<v Speaker 1>maker Butt was showing off three printers and they weren't

0:27:45.240 --> 0:27:50.080
<v Speaker 1>all fully operational, and yet they were still winning industry awards. Meanwhile,

0:27:50.359 --> 0:27:53.520
<v Speaker 1>competitors were popping up with lower priced printers, and that

0:27:53.600 --> 0:27:55.480
<v Speaker 1>was starting to eat into the segment of the market

0:27:55.480 --> 0:27:58.760
<v Speaker 1>that maker Butt had originally wanted to target. When it

0:27:59.160 --> 0:28:04.200
<v Speaker 1>pursued that asked market maker bought printer in Now when

0:28:04.240 --> 0:28:08.000
<v Speaker 1>customers had problems with their printers, however, things were more

0:28:08.080 --> 0:28:10.359
<v Speaker 1>complicated than they used to be. They used to be

0:28:10.440 --> 0:28:13.280
<v Speaker 1>able to solve those problems themselves. They could proNT out

0:28:13.280 --> 0:28:17.040
<v Speaker 1>a replacement part uh, they could consult the thing overs,

0:28:17.119 --> 0:28:19.720
<v Speaker 1>find out what was wrong, you know, the community forums,

0:28:19.840 --> 0:28:22.480
<v Speaker 1>and print out a replacement and fix it themselves. They

0:28:22.560 --> 0:28:25.760
<v Speaker 1>never had to bother anybody else, or they might be

0:28:25.800 --> 0:28:28.000
<v Speaker 1>able to rely upon someone in the community to help

0:28:28.040 --> 0:28:31.399
<v Speaker 1>them out. But the proprietary nature of the hardware and

0:28:31.440 --> 0:28:36.360
<v Speaker 1>the software men the crucial details were being purposefully withheld

0:28:36.400 --> 0:28:40.200
<v Speaker 1>from customers and competitors, and it was in order to

0:28:40.240 --> 0:28:43.640
<v Speaker 1>protect the business. So it made sense from a business perspective.

0:28:43.640 --> 0:28:45.959
<v Speaker 1>But now customers who were having problems with their printers

0:28:45.960 --> 0:28:48.280
<v Speaker 1>were finding it more challenging to fix those problems. They

0:28:48.280 --> 0:28:53.040
<v Speaker 1>couldn't always fix it themselves, and the company was struggling

0:28:53.040 --> 0:28:58.520
<v Speaker 1>to find a way to have consumer relations to answer

0:28:58.560 --> 0:29:01.680
<v Speaker 1>these problems. Repair issues things like that um in a

0:29:01.720 --> 0:29:04.560
<v Speaker 1>timely manner, and in some cases there just weren't any

0:29:04.600 --> 0:29:07.720
<v Speaker 1>fixes to be had. There was even a class action

0:29:07.800 --> 0:29:12.160
<v Speaker 1>lawsuit leveled against Stratusis and maker bought. The focal point

0:29:12.240 --> 0:29:16.360
<v Speaker 1>for the lawsuit was in the smart Extruder component that

0:29:16.480 --> 0:29:20.360
<v Speaker 1>was a component in many of maker bots more recent printers.

0:29:20.880 --> 0:29:24.880
<v Speaker 1>The lawsuit alleged that the company had knowingly included this

0:29:24.960 --> 0:29:31.320
<v Speaker 1>particular component in its printers, knowing that it wasn't working properly, so,

0:29:31.360 --> 0:29:34.080
<v Speaker 1>in other words, that the design was not really a

0:29:34.120 --> 0:29:37.400
<v Speaker 1>good one, and they put it in their their products anyway.

0:29:37.440 --> 0:29:39.960
<v Speaker 1>The lawsuit eventually was dismissed there was a lack of

0:29:39.960 --> 0:29:43.400
<v Speaker 1>evidence showing that the company had knowingly included a malfunctioning part,

0:29:44.000 --> 0:29:48.000
<v Speaker 1>but it didn't help the reputation of the company. In September,

0:29:48.960 --> 0:29:52.160
<v Speaker 1>Bree Pettis would step down as the CEO of maker Butt,

0:29:52.200 --> 0:29:54.960
<v Speaker 1>but he transitioned to become the head of stratusis Is

0:29:55.400 --> 0:30:00.320
<v Speaker 1>Innovation Workshop. Jenny Lawton, who was the president of maker

0:30:00.400 --> 0:30:03.000
<v Speaker 1>Bot at that time, would step up to become the

0:30:03.080 --> 0:30:07.040
<v Speaker 1>interim CEO. Lawton had previously invested in maker Bot and

0:30:07.080 --> 0:30:09.719
<v Speaker 1>had served as its chief strategy officer before she had

0:30:09.720 --> 0:30:14.760
<v Speaker 1>become president. And things got pretty rough at MakerBot. It

0:30:14.800 --> 0:30:17.720
<v Speaker 1>was not a good year for maker Bot or for

0:30:17.760 --> 0:30:21.480
<v Speaker 1>its parent company. Stratusis was not performing as well financially

0:30:21.640 --> 0:30:25.960
<v Speaker 1>as it had projected, and during the first quarter earnings

0:30:26.000 --> 0:30:30.640
<v Speaker 1>call in Strateusis executives cited a slowing market as the

0:30:30.680 --> 0:30:33.000
<v Speaker 1>real cause of the problem, that the three D printer

0:30:33.160 --> 0:30:36.440
<v Speaker 1>market was slowing down, that maybe they had already hit

0:30:36.520 --> 0:30:39.800
<v Speaker 1>maximum penetration in the hobbyist market and they had not

0:30:40.080 --> 0:30:44.280
<v Speaker 1>really been able to leverage that into the broader consumer market.

0:30:44.880 --> 0:30:48.600
<v Speaker 1>MakerBot sales were not performing as expected, and Jenny Lawton,

0:30:48.600 --> 0:30:52.720
<v Speaker 1>who had only been the CEO since September, was moved

0:30:52.840 --> 0:30:56.719
<v Speaker 1>to become the vice president of Special Projects over at Stratusis,

0:30:57.320 --> 0:31:01.720
<v Speaker 1>and Jonathan Jacklin, who had been the general manager of

0:31:01.800 --> 0:31:06.600
<v Speaker 1>Strateusis Asia Pacific Japan, became the new maker Bot CEO.

0:31:06.840 --> 0:31:09.440
<v Speaker 1>Jenny Lawton would end up leaving Stratesis just a few

0:31:09.480 --> 0:31:14.280
<v Speaker 1>months later, and so would Bree Pettis, the only remaining

0:31:14.280 --> 0:31:17.920
<v Speaker 1>co founder. He would also leave the company uh in

0:31:18.040 --> 0:31:21.360
<v Speaker 1>June two fifteen. Now initially he would lead a new

0:31:21.440 --> 0:31:25.560
<v Speaker 1>company called Bold Machines. This was actually the former Innovation

0:31:25.600 --> 0:31:30.240
<v Speaker 1>Workshop division of Stratusis. Stratesis decided to spin out the

0:31:30.280 --> 0:31:34.560
<v Speaker 1>Innovation Workshop as its own company, and Bree Pettis would

0:31:34.560 --> 0:31:38.000
<v Speaker 1>become the head of that company. Later still, he would

0:31:38.080 --> 0:31:42.000
<v Speaker 1>purchase another company that would change its name to Bantam Tools.

0:31:42.480 --> 0:31:46.160
<v Speaker 1>This is a company that produces a computer controlled milling machine.

0:31:46.400 --> 0:31:50.000
<v Speaker 1>Milling machines cut material away to make models. So you

0:31:50.000 --> 0:31:52.640
<v Speaker 1>could say he's gone back to sort of the opposite

0:31:52.640 --> 0:31:56.600
<v Speaker 1>of three D printing, but it does bring milling, which

0:31:56.600 --> 0:32:01.200
<v Speaker 1>has incredible precision, into the realm of the pro sumer,

0:32:01.280 --> 0:32:04.920
<v Speaker 1>and milling machines, like three D printers, were once so

0:32:05.000 --> 0:32:09.520
<v Speaker 1>prohibitively expensive that only big manufacturing companies could actually afford them,

0:32:09.680 --> 0:32:12.280
<v Speaker 1>So it's sort of doing the same thing but using

0:32:12.320 --> 0:32:15.600
<v Speaker 1>a different methodology than what he was doing with three

0:32:15.680 --> 0:32:21.240
<v Speaker 1>D printers. Back to Maker Bot in April, Jonathan Jacklin

0:32:21.320 --> 0:32:23.880
<v Speaker 1>led the company through a series of layoffs. He cut

0:32:23.920 --> 0:32:27.440
<v Speaker 1>twenty percent of all the jobs at Maker Bought in April,

0:32:27.680 --> 0:32:31.720
<v Speaker 1>and in October he did it again, knocking another off.

0:32:32.280 --> 0:32:34.840
<v Speaker 1>A big problem was that the company had sold fewer

0:32:34.880 --> 0:32:38.400
<v Speaker 1>than half of the number of printers in twenty as

0:32:38.440 --> 0:32:41.920
<v Speaker 1>it had in tween. You don't want to see that

0:32:42.000 --> 0:32:46.080
<v Speaker 1>number going down year over year. In general, businesses really

0:32:46.080 --> 0:32:48.760
<v Speaker 1>like to see those numbers go up, and this was

0:32:48.800 --> 0:32:51.840
<v Speaker 1>the wrong direction. So things were looking a little grim.

0:32:51.840 --> 0:32:55.680
<v Speaker 1>In sixteen, the company made another big change Maker Bought,

0:32:55.720 --> 0:32:59.960
<v Speaker 1>which shut down its manufacturing facility in New York outsourced

0:33:00.320 --> 0:33:04.000
<v Speaker 1>all of its manufacturing to China. So up to this point,

0:33:04.080 --> 0:33:09.240
<v Speaker 1>all the maker Printers were largely being made and assembled

0:33:09.400 --> 0:33:11.360
<v Speaker 1>in the United States. You know, there's some parts that

0:33:11.400 --> 0:33:13.520
<v Speaker 1>probably came from other places, but most of the parts

0:33:13.520 --> 0:33:17.600
<v Speaker 1>were being produced here in America. But in order to

0:33:17.640 --> 0:33:21.760
<v Speaker 1>bring the costs of manufacturing down, they made the decision

0:33:21.800 --> 0:33:26.520
<v Speaker 1>to shut down those US based operations and outsource everything

0:33:26.560 --> 0:33:30.080
<v Speaker 1>to Chinese manufacturers. They do still have offices in New

0:33:30.160 --> 0:33:33.440
<v Speaker 1>York and there's still people who work for Maker Bought

0:33:33.720 --> 0:33:37.760
<v Speaker 1>in the US. Involves some developers and engineers, uh, some

0:33:37.960 --> 0:33:42.280
<v Speaker 1>corporate personnel. Uh. The repairs department is located out of America,

0:33:42.720 --> 0:33:46.560
<v Speaker 1>but all of manufacturing has been moved over to China.

0:33:46.920 --> 0:33:49.800
<v Speaker 1>Jonathan Jacqueline led the company to shift its focus a

0:33:49.840 --> 0:33:53.800
<v Speaker 1>bit away from consumer three D printers, which really was

0:33:53.840 --> 0:33:56.920
<v Speaker 1>becoming hyper competitive. Lots of budget models were coming out

0:33:56.960 --> 0:34:00.560
<v Speaker 1>every year and eating into maker bots sales. So instead

0:34:00.760 --> 0:34:05.800
<v Speaker 1>he decided to focus on the educational and professional uses

0:34:06.040 --> 0:34:09.799
<v Speaker 1>for maker butt printers. This would keep the printers in

0:34:09.840 --> 0:34:14.520
<v Speaker 1>a more uh higher end market than consumer markets. He

0:34:14.560 --> 0:34:18.000
<v Speaker 1>could sell them for higher prices, didn't have to worry

0:34:18.000 --> 0:34:20.399
<v Speaker 1>about cutting costs to the point where it could make

0:34:20.600 --> 0:34:24.439
<v Speaker 1>a more competitive product in the consumer space, and things

0:34:24.520 --> 0:34:27.520
<v Speaker 1>kept changing. While the company would produce new printer designs

0:34:27.520 --> 0:34:30.520
<v Speaker 1>that were made in China, again trying to compete against

0:34:30.560 --> 0:34:36.319
<v Speaker 1>an increasingly crowded marketplace and an increasingly disillusioned pool of consumers.

0:34:36.680 --> 0:34:38.840
<v Speaker 1>The shoveling at the top of maker Bot had not

0:34:39.160 --> 0:34:44.200
<v Speaker 1>quite finished. In January, Jonathan Jackline resigned as CEO and

0:34:44.280 --> 0:34:47.600
<v Speaker 1>maker Bots president at that time was Nadav Goshen, who

0:34:47.640 --> 0:34:51.160
<v Speaker 1>would be promoted to the role of CEO. The company

0:34:51.239 --> 0:34:53.960
<v Speaker 1>is still in business today, though it is obviously a

0:34:54.280 --> 0:34:57.439
<v Speaker 1>very different entity than the one that was founded back

0:34:57.440 --> 0:35:00.600
<v Speaker 1>in two thousand nine. All three co founder are gone.

0:35:01.200 --> 0:35:07.160
<v Speaker 1>The founding principle of an open source hardware and software

0:35:07.160 --> 0:35:10.680
<v Speaker 1>approach is gone, a lot of the passionate community members

0:35:10.719 --> 0:35:14.600
<v Speaker 1>are gone, a lot of the goodwill for a thing

0:35:14.640 --> 0:35:18.600
<v Speaker 1>averse has gone as well, and the manufacturing facilities in

0:35:18.640 --> 0:35:21.640
<v Speaker 1>the United States are gone. More than a hundred jobs

0:35:21.640 --> 0:35:27.560
<v Speaker 1>are gone. So things have changed dramatically obviously for maker

0:35:27.600 --> 0:35:31.759
<v Speaker 1>but the company was probably chiefly responsible, I would say,

0:35:31.800 --> 0:35:34.960
<v Speaker 1>for raising the profile of three D printing, perhaps to

0:35:35.040 --> 0:35:37.680
<v Speaker 1>the detriment of the industry overall. It may be that

0:35:37.760 --> 0:35:42.640
<v Speaker 1>three D printing became a mainstream phenomena a little too

0:35:42.640 --> 0:35:46.719
<v Speaker 1>early before it was really ready to uh to to

0:35:46.840 --> 0:35:49.160
<v Speaker 1>settle in. If you think about that hype cycle that

0:35:49.239 --> 0:35:55.400
<v Speaker 1>Gartner always is talking about, the inflated expectations part was

0:35:55.480 --> 0:36:00.520
<v Speaker 1>probably particularly high for three D printers. Maybe now we're

0:36:00.560 --> 0:36:05.319
<v Speaker 1>finally on the pathway to having a more realistic and

0:36:05.400 --> 0:36:09.360
<v Speaker 1>sustainable implementation of three D printers. Whether or not Maker

0:36:09.400 --> 0:36:12.240
<v Speaker 1>Bought will play a large part in that future remains

0:36:12.280 --> 0:36:15.360
<v Speaker 1>to be seen. But the company has had to weather

0:36:15.480 --> 0:36:18.839
<v Speaker 1>some pretty serious storms over the past few years, and

0:36:18.880 --> 0:36:21.520
<v Speaker 1>that wraps up our look at the Maker Bought story

0:36:21.680 --> 0:36:24.839
<v Speaker 1>so far. I hope that in a few years I'll

0:36:24.840 --> 0:36:27.160
<v Speaker 1>be able to revisit this topic and maybe have some

0:36:27.200 --> 0:36:30.279
<v Speaker 1>really cool stuff to talk about. But it's kind of

0:36:30.520 --> 0:36:33.719
<v Speaker 1>an unfortunate story as it stands when you look at

0:36:34.040 --> 0:36:37.799
<v Speaker 1>how the people who truly love the company felt they

0:36:37.800 --> 0:36:41.400
<v Speaker 1>were treated, even people who were some of the founders

0:36:41.440 --> 0:36:44.640
<v Speaker 1>of that company. But sometimes the reality of business means

0:36:45.120 --> 0:36:49.560
<v Speaker 1>that those idealistic views have to have to have to

0:36:49.600 --> 0:36:52.560
<v Speaker 1>step aside. What do you guys think I'm curious to hear?

0:36:52.960 --> 0:36:55.759
<v Speaker 1>You can go to tech Stuff podcast dot com. That's

0:36:55.760 --> 0:36:59.360
<v Speaker 1>our website that has the ways to contact us, let

0:36:59.440 --> 0:37:01.960
<v Speaker 1>us know what you think, maybe give us suggestions for

0:37:02.040 --> 0:37:06.240
<v Speaker 1>future episodes, whether it's a company, a technology, a person

0:37:06.280 --> 0:37:09.200
<v Speaker 1>in text, someone I should talk to, that kind of thing. Also,

0:37:09.280 --> 0:37:11.839
<v Speaker 1>don't forget to head over to our merchandise store that's

0:37:11.880 --> 0:37:15.200
<v Speaker 1>over at t public dot com slash tech stuff. You

0:37:15.200 --> 0:37:18.520
<v Speaker 1>can see all sorts of different things with all sorts

0:37:18.520 --> 0:37:22.080
<v Speaker 1>of different designs, and every single purchase goes to help

0:37:22.120 --> 0:37:24.799
<v Speaker 1>the show, So we greatly appreciate it, and I'll talk

0:37:24.800 --> 0:37:33.880
<v Speaker 1>to you again really soon for moral this and bousands

0:37:33.920 --> 0:37:46.160
<v Speaker 1>of other topics because it how stuff works dot com