what-happened-to-google-glass

What Happened To Google Glass? How Google Glass Set The Stage For The AR Revolution

  • Google Glass is a brand of smart glasses with an optical, head-mounted display. Just two years after they were launched, Google announced they would no longer be producing a consumer version of the glasses. 
  • Google Glass failed primarily because of a poor product-market fit. The developers believed the glasses would sell on hype and not on how they would solve user problems.
  • Google Glass competed against more successful smart devices such as watches, speakers, and televisions. They also attracted criticism for their ability to film others covertly and didn’t perform any function especially well.
AspectDescription
Introduction and HypeGoogle Glass was introduced as a revolutionary wearable technology in 2012. It featured a heads-up display that allowed users to access information, take photos and videos, and interact with the internet through voice commands and gestures. The announcement generated significant hype and interest in the tech world.
Explorer ProgramGoogle initiated an Explorer Program in 2013, allowing a select group of individuals known as “Explorers” to purchase and test Google Glass before its official release. This move aimed to gather feedback and explore potential use cases for the device.
Privacy Concerns and Social AcceptanceGoogle Glass faced significant privacy concerns and social acceptance challenges due to its built-in camera and ability to record video without others’ consent. Concerns about privacy in public spaces led to the coining of the term “Glassholes” to describe users perceived as invasive.
Developmental IterationsGoogle continued to refine Google Glass with developmental iterations, addressing concerns and feedback from users. These iterations included hardware improvements and changes in design to make the device less conspicuous.
Enterprise FocusIn 2017, Google announced the Glass Enterprise Edition, shifting the device’s focus away from consumer applications toward enterprise and industrial use cases. The new version found applications in fields such as healthcare, manufacturing, logistics, and field services.
Success in EnterpriseGoogle Glass Enterprise Edition found success in the enterprise sector, where it improved efficiency and productivity for various industries. Its hands-free operation, real-time data access, and remote assistance capabilities proved valuable in specific work scenarios.
Acquisition by Alphabet XIn 2019, Google’s parent company, Alphabet Inc., transferred the responsibility for Google Glass from the Google division to Alphabet X (formerly known as Google X), its subsidiary focused on “moonshot” projects and innovation.
Ongoing Enterprise DevelopmentGoogle Glass Enterprise Edition continued to be developed and used in various industries, demonstrating its potential for specific enterprise applications. The device’s enterprise focus allowed it to thrive in niches where hands-free computing was advantageous.

Origin Story

Google Glass is a brand of smart glasses with an optical, head-mounted display.

Google developed the glasses with the intent to produce a ubiquitous computer allowing the wearer to communicate with the internet via voice commands.

Prototype Google Glass smart glasses were launched in April 2013 for the princely sum of $1,500. Almost immediately, they attracted criticism from consumers concerned about their privacy, safety, and cost. 

Just two years later, Google announced it would be ceasing production of the consumer version of the glasses.

The company then pivoted to the business sector and launched Glass Enterprise Edition for certain workplaces such as factories and surgeries. 

Why did the consumer version fail so spectacularly? Read on to find out.

Product-market fit

product-market-fit
Marc Andreessen defined Product/market fit as “being in a good market with a product that can satisfy that market.” According to Andreessen, that is a moment when a product or service has its place in the market, thus enabling traction for the company offering that product or service.

Google Glass failed as a product because its inventors did not conduct proper research on its potential users and the market.

Instead of developing a product that would solve user problems, they believed the glasses would sell on hype and revolutionary technology alone.

The early adopters were exposed to poor product development and could not identify any meaningful benefits to wearing the glasses.

Moreover, the glasses were not technologically advanced enough to warrant regular use, and Google had not determined whether they were comfortable to wear for long periods.

Competition

Google had lofty ambitions to augment reality with a touchpad, camera, and LCD or LED display.

In truth, however, all the company did was supplement reality.

Ultimately, the sunglasses had a limited battery life of between three to five hours.

They were also competing with smart televisions, watches, and speakers with faster processors, larger capacities, and better cameras. 

Stigma and negative publicity

Google Glass attracted significant criticism after discovering wearers could film others covertly. 

Some bars and restaurants banned wearers from entry, with the term “Glasshole” coined around the same time.

Google then released a statement instructing users to respect the privacy of others and not be creepy or rude, but the damage had been done. 

The timing of the negative publicity was also unfortunate since there was also rising distrust around the power of big tech companies at the time.

Cost

Even the prototype version of the glasses retailed for $1,500 – equivalent to the price of a well-equipped desktop computer.

The high cost of the glasses was exacerbated by the fact that they didn’t perform any function, especially well.

As a result, those who could afford them were content purchasing a more affordable smartphone without the associated stigma of owning it.

Google released the latest version of its AR headset in February 2020. Known as Glass Enterprise Edition 2 and retailing for a more agreeable $999, the “faster and more helpful” release enables employees to perform their jobs more efficiently. 

The product is most effective in manufacturing, logistics, construction, healthcare, and other industries that don’t require a dedicated mixed-reality device such as Microsoft HoloLens.

Project Iris

In September 2021, it was revealed that Google was working to develop an augmented reality OS for a new and innovative AR device. The initiative, known as Project Iris, involves a headset that will augment video from outward-facing cameras with various graphics.

Referencing those close to the project, American tech news website The Verge claimed the product would more closely resemble ski goggles than typical glasses. It would also be run on an unspecified processor most likely based on Tensor with hardware chief Rick Osterloh noting it was the “perfect foundation for making big improvements in AR.

The search giant is reticent to share details about Project Iris, with work undertaken in a separate building that requires a special keycard to access. There are over 300 employees working on the project with all signing non-disclosure agreements. 

Google splits its AR division

In February 2023, various articles reported that Google had split its AR division in response to competitors like Oculus Quest and Microsoft HoloLenses increasing their market share.

The reports coincided with the news that Google AR head Clay Bavor – at the helm for 18 years – would be leaving the company in March. All AR efforts previously under the purview of Bavor (such as Project Iris) will be moved into two separate divisions.

The first, Devices & Services, is headed by Osterloh and encompasses the Pixel Tablet, Fitbit, Pixel Watch, Chromecast, and Nest speakers, cameras, and displays. The second division, Platforms & Ecosystems, is led by Hiroshi Lockheimer and will incorporate Google’s AR efforts. 

Samsung collaboration

Google’s decision to incorporate AR into Platforms & Ecosystems is perhaps a nod to its recent collaboration with Samsung on Android-based extended reality (XR) headsets. Samsung president and mobile leader TM Roh hinted that the product was still in development but potentially close to a debut in the near future.

As part of the collaboration, Google is providing the software and a special version of Android tailored for wearable headsets and displays. The partnership and indeed restructuring of the AR division shows that Google is placing more of an emphasis on monetization. It also has the intention to adapt more of its services to XR environments.

Whether the company’s renewed focus on AR can overcome more advanced competitors and the negative experience it had with Google Glass remains to be seen.

Timing

While as a company, you can innovate and create new markets.

Often, technologies proceed with the development of complementary innovations.

AR might have been too early to be accepted at the time, given the strong transition from desktop to mobile.

In that phase, though, mobile won.

Setting the stage for the AR revolution

Augmented reality and virtual reality are taking center stage in what has been defined as the “Metaverse.”

augmented-reality-vs-virtual-reality
Just like Virtual Reality (VR) develops an entirely new environment for the user using the technology and replaces the existing real environment, AR uses the current and real environment. Still, the objects inside are enhanced to stimulate user perception. It alters one or multiple aspects of the environment for interaction and enriches the experience. Whereas VR would have replaced the entire room and shown you an entirely manipulated environment, AR enables users to use the same environment and observe different objects.

Today these technologies and products might become the next frontier. As companies like Apple dominated the mobile industry.

Who’ll be able to tame the next wave will also ride a very large market.

apple-market-expansion

Key Highlights

  • Google Glass was a brand of smart glasses with a head-mounted display and augmented reality capabilities.
  • It was launched as a consumer product in 2013 but failed to gain traction due to a poor product-market fit.
  • The developers focused on hype and technology rather than solving user problems, leading to a lack of meaningful benefits for early adopters.
  • Google Glass faced competition from other successful smart devices like watches, speakers, and televisions.
  • The product received negative publicity and criticism for potential privacy violations, leading to the coining of the term “Glasshole.”
  • The high cost of Google Glass, retailing at $1,500, made it less appealing to consumers compared to more functional and affordable alternatives like smartphones.
  • Google pivoted to the business sector with Glass Enterprise Edition, targeting specific workplaces like factories and surgeries.
  • Google continued its AR efforts with “Project Iris,” developing an augmented reality OS and innovative AR headset.
  • In 2023, Google split its AR division and collaborated with Samsung on Android-based extended reality (XR) headsets to focus on monetization and adapting services to XR environments.
  • AR and VR technologies are becoming central to the concept of the “Metaverse,” and companies are positioning themselves to dominate this emerging market.
YearKey Events
2012Google Glass introduced as a revolutionary wearable technology with a heads-up display, generating significant hype and interest.
2013Prototype Google Glass released for testing through the Explorer Program, allowing selected individuals to provide feedback.
2013Google Glass faces criticism for privacy concerns and social acceptance challenges, including negative publicity and the term “Glassholes.”
2017Google announces Glass Enterprise Edition, shifting focus to enterprise and industrial applications rather than consumer use.
2019Responsibility for Google Glass transferred from Google to Alphabet X, Alphabet Inc.’s subsidiary focused on innovation projects.
2020Release of Google Glass Enterprise Edition 2, featuring improved functionality and targeting specific industries for workplace use.
2021Project Iris revealed, an initiative to develop an augmented reality OS and innovative AR headset, focusing on user experience and applications.
2023Google splits its AR division and collaborates with Samsung on Android-based extended reality (XR) headsets, emphasizing monetization and service adaptation for XR environments.
Failed/Killed Project/Product at GoogleDescription and Key Reasons for Failure
Google+ (Google Plus)Google’s attempt at a social networking platform, failed to compete with Facebook and low user engagement.
Google WaveA communication and collaboration platform that was too complex and didn’t gain widespread adoption.
Google BuzzA social networking and messaging service that faced privacy concerns and was ultimately discontinued.
Google ReaderA popular RSS feed aggregator that was shut down due to a decline in usage and changing user habits.
Google Glass (Consumer Version)The consumer version faced privacy concerns, high cost, and a lack of practical use cases, leading to its discontinuation.
Google AlloA messaging app that couldn’t compete with established platforms like WhatsApp and lacked user adoption.
Google HealthA personal health record service that failed to gain traction and was discontinued.
Google AnswersA Q&A platform where users paid to get answers, but it couldn’t compete with free alternatives.
Google VideoGoogle’s video hosting platform was overshadowed by YouTube, which Google later acquired.
Google LivelyA 3D virtual world platform that was discontinued due to low user interest.
Google NotebookA note-taking and organization tool that was phased out in favor of other Google products.
Google KnolA knowledge sharing platform that faced competition from Wikipedia and lacked user engagement.

Related To Google

Who Owns Google

who-owns-google
Google is primarily owned by its founders, Larry Page and Sergey Brin, who have more than 51% voting power. Other individual shareholders comprise John Doerr (1.5%), a venture capitalist and early investor in Google, and CEO, Sundar Pichai. Former Google CEO Eric Schmidt has 4.2% voting power. The most prominent institutional shareholders are mutual funds BlackRock and The Vanguard Group, with 2.7% and 3.1%, respectively.

How Does Google Make Money

how-does-google-make-money
Google (now Alphabet) primarily makes money through advertising. The Google search engine, while free, is monetized with paid advertising. In 2023, Alphabet generated over $175B from Google search, $31.51B billion from the Network members (Adsense and AdMob), $31.31B billion from YouTube Ads, $33B from Google Cloud, and $34.69B billion from other sources (Google Play, Hardware devices, and other services). And $1.53B from its other bets. 

Google Business Model

google-business-model
Google is an attention merchant that – in 2022 – generated over $224 billion (almost 80% of revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $29 billion segment), and Google Cloud ($26.2 billion).

Google Other Bets

google-other-bets
Of Google’s (Alphabet) over $307.39 billion in revenue for 2023, Google also generated for the first time, well over 1.5 billion dollars in revenue from its bets, which Google considers potential moonshots (companies that might open up new industries). Google’s bets also generated a loss for the company of over $4 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries, which are ramping up in 2023. 

Google Cloud Business

google-cloud-business-model
In 2023, Alphabet’s (Google) Cloud Business generated over $33 billion within Alphabet’s Google overall business model, and it was also profitable, with over $1.7 billion in profits. Google Cloud is instrumental to Google’s AI strategy.

How Big Is Google?

how-big-is-google
Google is an attention merchant that – in 2023 – generated $237.85 billion (over 77% of its total revenues) from ads (Google Search, YouTube Ads, and Network sites), followed by Google Play, Pixel phones, YouTube Premium (a $31.5 billion segment), and Google Cloud (over $33 billion).

Google Traffic Acquisition Costs

what-is-google-tac
The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic – on its pages – for monetization. Over the years, Google has been able to reduce its traffic acquisition costs and, in any case, to keep it stable. In 2023 Google spent 21.39% ($50.9 billion) of its total advertising revenues ($237.8 billion) to guarantee its traffic on several desktop and mobile devices across the web.

YouTube Business Model

how-does-youtube-make-money
YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it reported more than $31B in revenues by 2023. YouTube also makes money with its paid memberships and premium content.

Google vs. Bing

google-vs-bing
In 2023, Google’s search advertising machine, generated over 175 billion dollars. Whereas Microsoft’s Bing generated 12.2 billion dollars. Thus, as of 2023, Google’s search advertising machine is over 14x larger than Microsoft’s search advertising machine.

Google Profits

google-income
Google makes most of its money from advertising. Indeed total advertising revenue represented nearly 78% of Google’s (Alphabet) overall revenues for 2023. Google Search represented nearly 57% of Google’s total revenues. Google generated $307.39B in revenues in 2022, and $73.79B billion in net profits.

Google Revenue Breakdown

google-revenue-breakdown
In 2023, Google generated $307.39 billion, comprising $175B in Google Search, $31.51B in YouTube ads, and $31.31B in Google network revenue. $34.69B in other revenue, $33B in Google cloud, $1.53B in other bets.

Google Advertising Revenue

how-much-money-does-google-make-from-advertising
In 2023, Google generated 237.85B in revenue in advertising, which represented over 77% of its total revenues of $ 307.39 B. In 2022, Google generated $224.47B in revenues from advertising, which represented almost 80% of the total revenues, compared to $282.83B in total revenues. Therefore, most of the revenues from Alphabet, the mother company of Google, come from advertising.

Apple vs. Google

apple-vs-google-revenues

Google Employees Number

google-layoffs
At the end of December 2022, Google had over 190,000 employees.  On January 20, Google announced the layoff of 12,000 employees within the company, thus bringing the number of total employees by December 2023 to 182,502 full-time employees.

Google Revenue Per Employee

google-revenue-per-employee
Google generated $1,684,332 per employee in 2023, compared to $1,486,779 per employee in 2022. As of January 2023, as the company announced a mass layoff, it brought back its revenue per employee at $1,586,880, still behind the peak in 2021, for $1,840,330.

YouTube Ad Revenue

youtube-ads-revenue
By 2023, YouTube generated $31.51 billion in advertising revenue.

AI Paradigm

current-AI-paradigm

Pre-Training

pre-training

Large Language Models

large-language-models-llms
Large language models (LLMs) are AI tools that can read, summarize, and translate text. This enables them to predict words and craft sentences that reflect how humans write and speak.

Generative Models

generative-models

Prompt Engineering

prompt-engineering
Prompt engineering is a natural language processing (NLP) concept that involves discovering inputs that yield desirable or useful results. Like most processes, the quality of the inputs determines the quality of the outputs in prompt engineering. Designing effective prompts increases the likelihood that the model will return a response that is both favorable and contextual. Developed by OpenAI, the CLIP (Contrastive Language-Image Pre-training) model is an example of a model that utilizes prompts to classify images and captions from over 400 million image-caption pairs.

OpenAI Business Model

how-does-openai-make-money
OpenAI has built the foundational layer of the AI industry. With large generative models like GPT-3 and DALL-E, OpenAI offers API access to businesses that want to develop applications on top of its foundational models while being able to plug these models into their products and customize these models with proprietary data and additional AI features. On the other hand, OpenAI also released ChatGPT, developing around a freemium model. Microsoft also commercializes opener products through its commercial partnership.

OpenAI/Microsoft

openai-microsoft
OpenAI and Microsoft partnered up from a commercial standpoint. The history of the partnership started in 2016 and consolidated in 2019, with Microsoft investing a billion dollars into the partnership. It’s now taking a leap forward, with Microsoft in talks to put $10 billion into this partnership. Microsoft, through OpenAI, is developing its Azure AI Supercomputer while enhancing its Azure Enterprise Platform and integrating OpenAI’s models into its business and consumer products (GitHub, Office, Bing).

Stability AI Business Model

how-does-stability-ai-make-money
Stability AI is the entity behind Stable Diffusion. Stability makes money from our AI products and from providing AI consulting services to businesses. Stability AI monetizes Stable Diffusion via DreamStudio’s APIs. While it also releases it open-source for anyone to download and use. Stability AI also makes money via enterprise services, where its core development team offers the chance to enterprise customers to service, scale, and customize Stable Diffusion or other large generative models to their needs.

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