By John Letzing Of DOW JONES NEWSWIRES SAN FRANCISCO (Dow Jones) -- Google Inc.'s (GOOG) efforts to become a bigger player in traditional media were dealt a setback when partner Logitech International SA (LOGI) said sales of a television remote control device built on the search giant's technology fell far short of expectations. In its fiscal first-quarter earnings release, Logitech said demand for the Revue, which works with special Google TV software to allow viewers to navigate Internet content, had been disappointing. The Swiss firm said customer returns of the Revue have outpaced the device's "very modest sales." Logitech said it would cut the price of the Revue to $99 from $249. The company had earlier cut the price from $299 to spur sales. The lackluster performance of the Revue marks a setback for Google's television ambitions. The Mountain View, Calif.-based company unveiled Google TV, a software package that blends traditional programming with Internet media, to much fanfare at its developers conference last year. The product was part of the company's broader push to become a force in the distribution of TV shows, movies and other media content. However, Google faced resistance from major networks, which worried their businesses would be undermined if their programming was made available via Google TV. The device was also dogged by complaints that Google TV was complicated to use. A Google spokeswoman said Logitech's move wouldn't deter the Internet giant from pursuing its TV projects. "It's still early days for smart TVs and we're investing to continue to bring innovation and progress for our partners and users," she said. The company will provide new and existing users with an updated version of Google TV later this year, she said. During a conference call with analysts, Logitech Chairman Guerrino De Luca stood by his company's partnership with Google. "It allowed us to build a strong relationship with the technology leader which promises to bear more fruit down the road," De Luca said, according to a transcript. Still, the poor results for the Revue are "partly due to the fact that Google TV has not yet fully delivered to its own promises," he said. Separately, Logitech said Thursday that De Luca will assume the CEO role after Gerald Quindlen steps aside. Other Google TV partners include Intel Corp. (INTC) and Sony Corp. (SONY), which builds compatible TV sets. -By John Letzing, Dow Jones Newswires; 415-765-8230; john.letzing@dowjones.com (Amir Efrati contributed to this story.)
