Net Appliances Unplugged

Sept. 5 -- Computer manufacturers had high hopes for so-called Internet appliances — devices that would allow consumers to easily get on the Net without learning how to use complex and costly personal computers. But for now, the hopes are quickly sinking — prompting many to abandon the market while they still can.

Nearly a dozen manufacturers — ranging from start-ups to established PC makers — have tried their hand at developing and selling these simple Net access devices over the past two years in an attempt to get more consumers online.

The machines, as the name implied, were suppose to be as easy to operate as a kitchen appliance. But such simplicity also meant sacrificing some of the conveniences of a full-fledged PC — such as a hard drive to store information from the Net. And to keep prices for the hardware low, most makers tried to recoup costs by locking consumers to lengthy service commitments for the machines' Net access service.

Hasty Retreat

But consumers have balked at such compromises, leaving makers with no choice other than to beat a hasty retreat. The latest to sound a strategic withdrawal: consumer electronic giant Sony.

On Aug. 30, the Japanese company announced it was pulling its $499 eVilla machine, just two months after the device's much-ballyhooed launch in July. The device "fell short of our initial expectations in terms of stability and usability," the company said in an e-mail to the press. The company will buy back the machine from consumers and turn off the eVilla service on Sept. 13. Sony also made no mention if what it touted as its "network entertainment center" would one day return to store shelves.

Sony's move mimics those made by other once-hopeful Net appliance makers. Last March, 3Com canceled its Audrey Internet access device after only six months of disappointing sales. And back in November, startup Netpliance stopped making its sub-$300 I-opener machine due to rising production costs as well as lagging sales.