
Just about a year ago, the green, scaly, rubbery Pleo dinosaur became a robotic sensation. More life-like than the Furby and more fun than the Roomba, Pleo was seen as the first consumer robot that could evoke those warm, fuzzy feelings usually reserved for Fido or Fluffy.
But now Ugobe, the company behind the Pleo, is struggling to save itself from extinction as it tries to raise fresh funding and keep its pipeline of products alive.
Over the last six months, the company has seen a host of top management departures, run through two CEOs, closed down its office in California and pared down its marketing and PR staff in an attempt to weather the current economic storm. Emails to the company’s media contact info on the its website bounce back. And good luck trying to get someone to pick up the phone when you call its corporate office.
So is Ugobe still alive? Yes, says company President and COO Doug Swanson. "Believe me, we are still in business," he says.
It’s a been a mighty fall for the company that changed how people viewed robotic toys. Ugobe first showed off the Pleo to a rapturous audience at the DEMO conference in 2006. The dinosaur came with a graceful motion and a wicked ability to respond to human interaction that made it seem almost real. The Pleo responds to being petted, makes feeding sounds, play when engaged and walk around the house almost like a pet.
"Pleo is the first robot that, if you allowed yourself to suspend disbelief, you could fool yourself into thinking it was a baby pet," says Robert Oschler, who runs Robots Rule, a site that covers the consumer robots business.
But as consumer spending has slowed down and competition from other consumer robotic companies has intensified, Ugobe has found itself in a tough spot. The Pleo, which cost $350 when it was introduced and now goes for $280 on Amazon, looks increasingly pricey for a toy that does little more than make you go "Awwwww."
In July, Ugobe CEO Bob Christopher stepped down and former CFO Liz Gasper took the reins. Christopher says he left the company to move on to other ventures he was interested in. Gasper focused on cutting down the company’s burn rate and finding fresh funding.
With the collapse of the credit environment, though, fund raising came to a halt. Meanwhile, the company’s entire board of directors resigned before Christmas to give control of Ugobe back to the co-founders, says Swanson.
Ugobe also closed down its Emeryville, California office and moved all operations to its other outpost in Boise, Idaho. The company has only about 20 employees now.
Last month, Gasper left the company and original co-founder Caleb Chung found himself back in the hot seat. Chung did not respond to requests for an interview.
Despite the turmoil, Ugobe’s Pleo dinosaur has a loyal fan base. Ugobe has sold 100,000 Pleos since its launch in January 2007, says Swanson. About 60 percent of sales have come from Europe, 30 percent from Asia and the rest from North America.
Ugobe still has a few robotic rabbits that it can pull out of its hat, says Swanson. The company is working on a pipeline of new products, including an update to the Pleo later this year. And the company has begun "very definite engineering moves" for a product that will come out in 2009, Swanson says.
"Not only are we alive but we are busy," says Swanson.
There’s no doubt though that the past few months have taken its toll on the company, says Christopher, the former CEO and still one of the company’s largest shareholders. "I am sure the challenges of the last six months have had some effect on Pleo orders," he says. The Pleo remains in stock at Amazon.com and Toys "R" Us among other retailers.
Nevertheless, Christopher is hopeful of the company’s future. "Caleb and the team at Ugobe are brilliant inventors," he says, "and there’s no lack of creativity at the company."
Ugobe is expecting flat growth this year but the company has to work hard to beat the odds if it doesn’t want to have the same fate as the dinosaurs it imitates.
See also:
Say Hello to the Pleo
Photo: Pleo/(Travis Isaacs/Flickr)
