Sony Pulls Plug on e Villa
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After only two months, Sony Electronics Thursday bagged its e Villa Network Entertainment Center, a net appliance that Sony had banked would succeed where competitors like 3Com's Audrey failed.
"We are withdrawing the e Villa Network Entertainment Center from retailers who agreed to market the product in the U.S.," said Sony spokesman John Dolak. "We are also notifying users of the product of our intention to discontinue the consumer e Villa service by Sept. 13, offering them a full refund that includes costs associated with the device and related services."
The device, which looked similar to a PC but had a 15-inch, portrait-mode (800 by 1,024-pixel) display, was offered to consumers at about $500. Though it offered many of the same features as a Net appliance -- Web surfing and e-mail -- Sony billed it as an entertainment center due to its multimedia capabilities. The appliance was packaged with dial-up connectivity via EarthLink for $21.95 a month, and ran on Be Inc.'s BeIA embedded operating system. Palm acquired Be earlier this month, and said it had no plans to continue development of BeIA.
But the acquisition of Be appears not to have been the cause of the e Villa's demise.
Indeed, Sony launched the e Villa at a time when earlier entrants to the Net appliance field -- including the Audrey and Netpliance's i-Opener -- had already expired. Sony likely thought it could get a piece of the information appliance market that IDC predicted in June would soar from $7 billion last year to $44 billion in 2005.
But IDC didn't really have Web terminals like the e Villa in mind when it made that prediction.
In the same report that IDC prognosticated a $44 billion market in 2005, it also said, "Moving forward, more established products such as handhelds, iTV-enabled devices, and Internet-capable gaming devices will fuel-inject the information appliances market with high-octane growth. Together, these products will account for 85 percent of the total value of shipments in 2005. Web tablets, Web terminals and e-mail terminals will make up only a very slim portion of the market."