According to a person familiar with the situation who was not authorised to talk on the record, Snap is stopping development on Pixy, its $230 flying camera drone that was first revealed in April.
The Wall Street Journal broke the news first, saying that CEO Evan Spiegel informed the workforce of the company of his decision.
The Pixy was released as a new tool for Snapchat users to take pictures from unusual perspectives. It can take off from the user’s palm and fly in four different directions, one of which follows the person.
Snap, which on its website describes itself as a camera startup, has been attempting to break into the hardware market, most notably with a number of revisions of the Spectacles sunglasses that have built-in cameras. Due to too much inventory, the original iteration of Spectacles cost the business around $40 million in writedowns in 2017.
The company’s primary advertising business is suffering as a result of its ongoing issues with tangible goods. As the firm deals with waning demand for its advertising platform, a harsh economy, and Apple’s 2021 privacy changes that have made ad targeting much more complicated, Snap’s shares have lost about three-quarters of their value this year.
Snap stated that it was “not satisfied with the results we are delivering, regardless of the current headwinds” in its second-quarter earnings release in July. The business disclosed plans to significantly limit both the rate of hiring and the increase of operating expenses.
The fact that the Pixy is still available for purchase on Snap’s website suggests that the business may be liquidating its remaining stock.