Logitech Inc. this week said it will discontinue production of the Logitech Revue set-top box with Google Inc.’s Google TV due to sluggish sales according to a new report.

Logitech Chief Executive Guerrino De Luca reportedly called the 2010 release of the Logitech Revue a ‘big mistake’ as it provided a full-scale launch with a ‘beta’ product.

He added the venture into internet TV and operation cost in the EMEA region cost the company more than $100 million in operating profits.

Google in Oct. updated the Google TV product with new interface, search functions, and developer options for Android apps on the device.

The company said the new Google TV interface is simpler with a customizable home screen and an ‘all apps’ tab to view all current applications like an Android smartphone.

A new app called ‘TV & Movies’ allows owners to browse through content from cable, satellite, Netflix, Amazon, YouTube and more.

YouTube is now more closely integrated with Google TV to allow users to turn any topic into a channel.

Finally, Android developers can now push Android Market apps to Google TV or develop new apps specifically for the device.

Google TV, which began sale in May 2010, is sold as a stand-alone device or built-in to select TV sets.

The product has held lukewarm sales at retail, with manufacturers holding discounts to promote demand.

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