- 20 Nov 08, 09:45 GMT
You know things are getting bad when the often thought of mighty Google starts acting like most Silicon Valley companies amid the global economic crisis that is rippling throughout the country.
For weeks the advice being doled out to starts ups has been to hunker down, conserve cash and concentrate on the core business. But how worrying is that Google is heeding that same advice by pulling the plug on Lively, a product which was launched less than five months ago as a rival to the virtual world Second Life?
In a blog posting headlined "Lively no more", the company said "Despite all the virtual high fives and creative rooms everyone has enjoyed in the last four and a half months, we've decided to shut Lively down at the end of the year."
Google said it was a "tough decision" but that it wanted to "ensure we prioritize our resources and focus more on our core search, ads and apps business."
Many outside and within the company may well agree with that sentiment given that more than three quarters are under water with their share price. A year ago it was over the $700 mark and this month it hit historic lows of under $300.
There have been plenty of commentators and analysts calling for Google to return to its roots and stop messing about with distracting projects like geo thermal energy, space travel and the like.
Of course the company is in a lose lose situation here. There has to be kudos given for having the guts to axe something that just wasn't working yet it also makes one wonder what is next?
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