Keystone.
Keystone. It was more expensive than we wanted it to be when we actually built it out with the hardware that we had inside. We decided to focus that team's effort on delivering the smart TV streaming app. It was really just a direction, "Okay, we're going to focus our effort on our partnership with Samsung and where that app might continue to show up in different places over time." With Keystone, we're still focused on it and watching when we can get the right cost.
When you have Series S at $299 — and during the holidays you might see some price promotions — and you obviously have Series X higher, I think in order for a streaming-only box to make sense, the price delta to S has to be pretty significant. I want to be able to include a controller in it when we go do that. It was really just about whether we could build the right product at the right price, or if we couldn't, how could we focus the team's effort? We decided to go do the TV app with Samsung, and we're really happy with the results there.
What's the right price?
I don't want to announce pricing specifically, but I think you have to be somewhere around $129, $99 for that to make sense in my view. We just weren't there with a controller. I love the effort. The reason it's on my shelf is because the team rolled up their sleeves and in nine months they built that thing. A bunch of us took it home and it worked. It worked really, really well.
When you are building new products, it's always about, do you have the right design? Do you have the right user interface? Do you have the right customer proposition? That customer proposition includes the price, and I think all of us knew that we were a little out of position on price.
Was the price too high because of the processor or the controller inside? You keep mentioning Samsung TVs. They are not processing powerhouses. Everyone who's ever used a smart TV knows these things are underpowered out the gate and they feel even more underpowered over time.
This is why we will get there. It's different when you have your own power source. Not to go into the hardware design, but if this thing is standalone, it's not living on the power source and the integrated circuits that are already in the TV. You have to do everything bespoke. We made some decisions to make it easy. When it is turned on, it looks like an Xbox with the user interface and everything works. Some of the silicon choices we were making at the time of designing just didn't let us hit the price point that we wanted.
I love when teams go off; it was kind of like our back-compat team back in the day. I applaud when teams go off and take a crazy mission of, "We're going to build a streaming console and all try it at home, and the experience will be really good." I love when teams take risks and deliver. I think it's fantastic.