VR flop Magic Leap’s ‘pivot’ spins CEO right off his throne
- Reference: 1590733928
- News link: https://www.theregister.co.uk/2020/05/29/magic_leap_ceo_rony_abovitz_steps_down/
- Source link:
Rony Abovitz [1]posted the news on Thursday, recounting how the since the company “pivoted to focus on delivering a spatial computing platform for enterprise” he and the board have “agreed that now is the time to bring in a new CEO who can help us to commercialize our focused plan”.
Abovitz founded the company in 2011 and helped it to raise $2.6bn of investment, plenty of it won with breathtaking “demos” of the company’s VR tech that were actually just special effects videos.
Magic Leap did deliver a VR headset, but [2]reviewers did not think the $2,295 gadget was particularly magical or a leap beyond competitors such as Microsoft’s Hololens. Nor was it anywhere near the company’s promise of a device that can be “worn all day, every day, by everyone.”
Magic Leap blows our mind with its incredible technology... that still doesn't f**king exist [3]READ MORE
Despite having failed to deliver his vision as leader, Abovitz wrote that he intends to stick around.
“I will remain our CEO through the transition and am in discussions with the Board with regards to how I will continue to provide strategy and vision from a Board level,” he wrote, adding: “I remain super excited about Magic Leap’s future and believe deeply in our team and all of their incredible talent and capabilities.”
That team was [4]halved in April 2020 as a cost control measure, however the company last week scored a further $350m investment to help it “expand product-market fit and revenue generation.”
Which we think translates as “we really must develop products somebody will pay for.” The company’s plans currently call for that product to deliver “… the ability for businesses to operate across vast distances and connect with their customers in ways that mimic physical interactions”.
And there we were thinking that [5]converting free Teams trials into paying punters was the next big thing. ®
[1] https://www.magicleap.com/en-us/news/news/a-message-from-rony
[2] https://www.theregister.co.uk/2018/08/08/magic_leap/
[3] https://www.theregister.co.uk/2017/12/20/magic_leap/
[4] https://www.theregister.co.uk/2020/04/22/magic_leap_layoffs/
[5] https://www.theregister.co.uk/2020/05/12/microsoft_remote_work_rebate_program/
Golden cushion
On the board seat by any chance?
You know, just to soften the landing after falling off the CEO's chair.
To be honest, the man should be admired for both his nine years of staying power and the ability to raise 6.2 billion in backing with promo's that were revealed to be dodgy and so far no product that actually fulfills the original promise.
He should be in prison for fraud ...
... and those who invested other people's money should be fired for negligence. Those who invested their own have been punished enough.
He's a con-man
I'm amazed and disappointed that people are still investing money in Magic Lark.
....well, not that amazed.
I have to disagree with some of the rather (IMO) harsh comments here. He founded a company that designed and produced robotic arm technology and computer assisted surgical tech... (anyone who has worked in that field will tell you how rigorous your design and quality need to be). He then sold the company and the tech. for an absolute shitload of money to a market leader in this field.
The slightly sad part of this (as this article correctly points out) is that the knowledge his engineers gained in the R&D will likely be lost or go to other companies.
There's no shortage of people, particularly in the USA, who are over hyping the next best thing. And it seems no shortage of people willing to jump off the cliff with them. Buyer Beware?
He has lined his pockets well.
But what does that say about the due diligence of the people who threw such a shedload of cash at him?
$deity on a bike, if Reaction Engines had his flair for BS the first Skylon would be in flight test by now.
Both depressing and disappointing.
Another chapter in an MBA's 'disaster' textbook as a lesson of what not to do. Unlikely it'll do his career any harm. Never does.
Translation: It was a good gig while it lasted, but I've been rumbled. Never mind, I made a tidy sum out of all those 'investors'. Enough to tide me over until people have forgotten anyway.