Subject: [NEXTEL-1] Citizen May Pull Out Of Microsoft's SPOT

From: [email-masked]
Date: Tue, 18 Nov 2003 06:42:40 -0500

Citizen May Pull Out Of Microsoft's SPOT
Contributed by mmasnick on Mon, Nov 17 2003

It's looking like our belief that Microsoft's SPOT datacasting-to-wrist watches
idea was destined for failure may have been, well, spot on. Last week we
mentioned that it had been delayed (it was originally supposed to be launched
this week), and now comes a report that watch maker Citizen may be ditching the
idea altogether, having come to the realization that maybe there really isn't a
market for watches that deliver the latest weather news.

www.techdirt.com
=====================================================================

Microsoft, Partners Delay SPOT Watches
November 14, 2003
By: Mark Hachman

Originally slated to launch at Comdex next week, the SPOT watch designed by
Microsoft Corp. and its partners has been delayed until the first quarter of
2004 to accommodate further testing.

Executives at Citizen Watch Co., one of the companies slated to manufacture SPOT
watches, also said Friday that they may pull out of the partnership and not ship
a SPOT watch at all.

The watches were originally supposed to ship this fall, according to a speech
made by Microsoft's chief software architect, Bill Gates, at the Consumer
Electronics Show in Las Vegas this past January.
Partners, including Citizen, Fossil Inc. and Suunto – said they were working
with Microsoft to develop and commercialize the new technology.

For Microsoft, the SPOT watches represent another foray by Microsoft into the
consumer space, a market that traditional PC companies like Dell Computer and
Gateway have also encroached upon. Other future Microsoft-branded devices may
also use the SPOT technology, including items like high-tech refrigerator
magnets.

Chris Schneider, a product manager for the SPOT watches at Microsoft, said the
watches were originally scheduled to be launched next week at the Comdex show in
Las Vegas. It was not known at press time whether Gates' Comdex keynote will
mention the delay.

"As we get close to retail availability we wanted to do due diligence,"
Schneider said. "The watches are already on hundreds of wrists of hundreds of
people right now… We'll be launching shortly after the first of the year."

Schneider did not say whether the launch would occur at the Consumer Electronics
Show in Las Vegas in early January, although he said he expected Microsoft to
have a "strong presence" there.
Executives at Citizen and Fossil also confirmed the delay. Suunto executives
couldn't be reached for comment, although online postings have suggested that
the company will sell its n3 SPOT watch beginning in the first quarter for
$299.99. Fossil's web page doesn't indicate a ship data, but representatives
said the company currently plans to sell the Microsoft Wrist Net MSNDIRECT watch
for $199.99.

Citizen, however, has begun to have second thoughts. Stuart Zuckerman, senior
vice-president of merchandizing for Citizen USA, said that the question hasn't
been decided. "For now, we still cooperate as a partner of Microsoft and of the
SPOT technology," he said. "But as far as a product is concerned, we haven't
decided for sure."

Microsoft's Schneider said Microsoft will be showing off functional watches by
both Fossil and Suunto, but not Citizen, in its booth at Comdex.

The watches use the SPOT technology, which is fed data through an FM subcarrier
that transmits weather, traffic, and other information over low-power FM
frequencies. Users subscribe to the SPOT service through MSN Direct, a service
that costs $9.95 per month or $59 for a full year.

Zuckerman said he did not know the specific reasons why Citizen was considering
pulling out of SPOT development. However, he did say that the additional beta
work would ensure that the receiver built inside the watch would receive the
signal, as it's supposed to. "If you can't receive a signal, you haven't bought
yourself a product," he said.

Microsoft's Schneider said that users should expect MSN Direct coverage in about
80 percent of the geographic landmass of the U.S. and Canada, with over 100
major metropolitan areas covered by the service.  Microsoft's SPOT FM-subcarrier
infrastructure, called "Microsoft DirectBand," is ready to go.
"We just need to flip the switch," Schneider said.

Executives at Fossil also confirmed that the watch's wireless infrastructure was
being additionally tested.  Industry sources also said that the watch had been
pushed out because of unsatisfactory battery life, a charge Schneider said was
not true.

"One of things we were focusing on is that knew we had allow enhanced
miniaturization of the software and hardware," Schneider said. "It had to be
used every day, like a wristwatch."
The battery life of SPOT watches will change, depending on the wireless usage,
Schneider said. In one mode, called "Glance," the watch will cycle through
various data services, running down the battery relatively quickly. Still,
Schneider said his watch averages about five days of battery life before it must
be recharged.  Microsoft will encourage users to think of it as a cell phone, he
said, needing periodic recharges.

As always, the bugs needed a bit more time to be worked out, watchmakers said.
"Truthfully, I guess some developmental issues took longer to perfect,"
Citizen's Zuckerman said. "Whether the January announcement is a little hopeful
I can't say, but I think there was a bit of optimism in pulling everything
together."

http://www.extremetech.com/article2/0,3973,1383803,00.asp?kc=ETRSS02129TX1K0000532

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