The layoffs at Digeo impact approximately half of the staff, with nearly 80 people being released, from roughly 160 employees. Most of those laid off are from areas of the company not involved in product development. Digeo is looking to refocus on the development of a few key products going forward. The products that remain in development are:
- Moxi HD DVR for Cable
- Next-gen Moxi Multi-Room HD DMR
- Moxi TV for PC software
- Moxi OCAP/Tru2Way software

The Moxi HD DVR for Cable seems to be the closest to release. It is in field trials now and Gudorf says it will be released this quarter (1Q08). The Moxi HD DVR for Cable is a new hardware platform targeting cable MSOs, and it will compete with STBs from Motorola, Cisco, et al. Gudorf did say that it is an OCAP capable platform, which makes sense given the need to be competitive with the new STBs offered by other vendors. He was unwilling to state which cable MSOs might carry the new box, instead referring me to their current MSO partners as likely candidates for the new platform.

Gudorf was unwilling to share specifics on the next-generation consumer platform at this time, deferring any feature announcements until later this year. However, he did refer to it as “the next-generation Multi-Room HD DMR”, which certainly provides a strong hint at one of the product features. He did state that it is a CableCARD system, which is what I’d expect. From our conversation it sounds like it has been in development as the intended follow-on to the original Moxi Multi-Room HD DMR, which was canceled yesterday. Reading between the lines I’d say that, due to the lengthy delay in bringing the original box to market, Digeo simply decided to drop the original product to refocus resources on the newer platform as their first retail offering. (Shades of Atari dropping the Panther for the Jaguar. I’d guess maybe two people reading this got that reference.) Based on the state of the units shown at CES and what I heard from Digeo’s reps at the show, this is almost certainly the best move. It seemed likely the unit wouldn’t make it to market until late this year, at best, and by then the platform would be eclipsed by newer systems. I tried to get some more details on the unit, such as if it would be cable-only or if, like the TiVo Series3 & TiVo HD, it would support ATSC as well. But he again deflected questions on product specifics until later this year.

The Moxi TV for PC software, the Windows XP version of which is currently in beta, will remain in beta while work on the Vista version is completed. It will be released for both XP and Vista once the Vista version is completed and goes through beta. So it doesn’t sound like there are any real changes there, aside from possibly delaying the XP version’s release for the Vista version to be completed. That seems like a smart move to me, there will be less confusion if consumers don’t have to worry about which Windows they have, or wonder why it doesn’t work on their new PC.

Work on the OCAP/Tru2Way Moxi software continues. Gudorf declined to get into specifics on the software or time frame, other than to say that it is an important platform given the direction the market is taking. I’d certainly agree.

Digeo’s previously announced relationships with Monster Cable, 4Home Media, Flickr, Finetune, Accedo Broadband, and CloverLeaf Digital all remain in place. We’ve seen details on all of these, except for the Monster Cable relationship. All that has been stated regarding that relationship, to my knowledge, is that the two companies are exploring future product development opportunities together. I tried to get more details on the relationship from Gudorf, but, other than to say Digeo is excited to be working with Monster Cable, he left any product announcements as Monster’s to make. I am quite curious as to what that relationship may produce.

Again, I’d like to thank Gaby Adam and Greg Gudorf for taking the time to speak with me, clarify Digeo’s plans, and answer my questions. While I have at times been harsh in my posts about Digeo Moxi I do believe they have a good platform and the potential to provide TiVo some real competition in the DVR market. I think they need to improve some areas of the product, based on what I’ve seen to date, and I’m hopeful that this reorganization and refocusing of their development efforts will produce those changes, resulting in an even stronger product reaching the market. I look forward to seeing what details Digeo announces later this year with regard to their next-generation Multi-Room HD DMR, and I’ll be looking for more information on the HD DVR for Cable later this quarter, as well as keeping an eye out for any changes in the Moxi TV for PC and OCAP software efforts.

If I learn of any new information I’ll be sure to share it.

In addition to the product testing, Digeo is laying off nearly half of its staff, and current CEO Mike Fidler will be replaced by COO Greg Gudorf. Fidler has stated that he chose to step down on his own, and is not being pushed out. He will stay on as long as is necessary to help Gudorf with the transition. Considering all the trouble Digeo has had in bringing Moxi products to market, the management shake-up is hardly surprising. After Digeo acquired Moxi in 2002, they pulled plans to release retail Moxi products and, instead, focused on licensing the software to cable MSOs. However, that tactic didn’t work out very well, with only roughly 400,000 homes using the Moxi software at this point. In late 2006 Digeo began talking about finally bringing Moxi into the retail market to compete with TiVo, and at CES 2007 they made a splash by showing off mock-ups of the Home Cinema DMR and the Multi-Room DMR, claiming they’d be on shelves by the fall of 2007. Clearly they failed to meet those goals, as the Home Cinema DMR had only recently gone into beta and the Multi-Room DMR still exists only in prototype and development models, and the display units at CES 2008 weren’t even running.

When Digeo first announced their plans the only viable 3rd party HD DVR was the TiVo Series3, which was still selling for nearly $800. However, in the meantime TiVo released the TiVo HD with a $300 MSRP while continuing to expand the feature set. Between sales, online discounts, and rebates the Series3 is regularly available for $350-$400 and the TiVo HD for ~$250. While the Moxi’s expected higher MSRP, expected to be around $1,000, would be partially offset by the lack of a subscription, it was still expected to be quite a bit more expensive while lacking some of the core features offered by TiVo. Based on my past comments it is probably no surprise that at this point I think canceling these units is the right thing to do. I just hope that they pay attention and take the best features of both units to produce one solid DVR with CableCARD and ATSC support. The Moxi software does have some very good things going for it, Digeo just needs to bring it together with a solid, affordable hardware platform, and fill in a few of the gaps in the software.

Also not mentioned in the article is the OCAP/Tru2Way port of the Moxi interface that Digeo claims to be working on currently. I would have to expect them to continue working on that, for the sake of the future of the company. The entire cable industry is moving to OCAP, aka Tru2Way, and a number of consumer electronics products supporting it were unveiled at CES. They really need to have a play in that area of the market going forward.

What is known is that Digeo will focus on another product, the Moxi HD DVR for Cable, which is due ‘sometime later this year’. Little is known about this product, but a tiny image of it does appear on this page of Digeo.com in the lower-right corner. It is hard to tell from such a small image, but it looks to be quite a bit smaller than the Multi-Room HD DMR, which is good (see my earlier opinion on the looks of the Multi-Room box). It is black, and seems to more closely resemble the Home Cinema box overall. I can’t tell from the image if it has a DVD drive, as the two canceled units did. I do note that it is called a ‘DVR’ rather than a ‘DMR’, which makes me wonder if it will have the media features supported by the now-canceled units. And the fact that CNET referred to it as the ‘Moxi HD DVR for Cable‘ makes me wonder if it has any support for ATSC, or if it suffers the same glaring flaw as the Multi-Room DMR in lacking it.

There is a press release from May 7, 2007 in which Digeo announced a ‘Moxi HD DVR’ and the Moxi for OCAP development efforts. However, that press released also claimed the HD DVR would be available in 4Q07 and the first version of the OCAP software would be available in 4Q07 with additional versions in early 2008. From the press release it also sounds as if the HD DVR is aimed for sale to cable MSOs, while the CNET article makes it sound like a retail box. So it isn’t clear if this is the same unit they’re working on now for later in 2008, or if it is a newer unit with the same name. It could be that they’ll produce one unit and seek to distribute it both via cable MSOs and retail.

When I heard the news I contacted Digeo and their public relations firm for a clarification on these issues. Understandably, given the chaos caused by layoffs (I’ve been through that myself), no one was available to speak with me today. However, I currently have a conversation scheduled for tomorrow and I’ll follow up once I get some clarification on their product plans going forward.

Thanks to Brad Linder of PVR Wire @ TV Squad for the tip-off.

EDIT 19:33: EngadgetHD got a hold of a Digeo press release which makes things a bit clearer than CNET’s article. There are two products Digeo will continue to work on – the Moxi HD DVR for Cable and a ‘next-generation consumer DMR’ which will be a retail product. That makes things a bit more clear.

The Moxi HD DVR for Cable is intended for cable MSOs and the press release states that it is in trial now and will be released as planned. (Of course, it was ‘planned’ for 4Q07.) The next-generation consumer DMR has apparently been in development along side the canceled products, and development will continue.

So one is a new STB for the cable industry, which will likely be cable-only, while the other will be a retail STB, which will hopefully support CableCARD and ATSC. I’ll see what I can find out tomorrow.

EDIT: I’ve posted more information from my conversation with COO Greg Gudorf.