(Original Title: Pepper, the Emotional Robot, Continues to Bleed Money with Over $274 Million in Debt)
Since its launch in July 2014, SoftBank's humanoid emotional robot, Pepper, which has been deployed in high-traffic areas like shopping malls, airports, and train stations, has seen over 10,000 units placed worldwide. These robots have assisted passengers in finding their platforms at French train stations and even guided shoppers in French and Spanish supermarkets.
When Pepper listens to people, it mimics human behavior by crossing its arms, and when it hears a question, the lights around its eyes illuminate, signaling that it's actively listening. Pepper is equipped with four microphones and touch sensors on its head, a camera on its chest and mouth, a 3D sensor behind its eyes, and a gyroscope in its torso.
SoftBank CEO Masayoshi Son once described Pepper as “the first robot capable of reading human emotions.†Despite this claim, the liabilities of the robots exceed assets by $274 million. In the fiscal year 2015, SoftBank Robotics reported losses amounting to $1 billion. A major contributing factor to these losses is the fact that selling each Pepper unit results in a financial loss since the production costs outweigh the selling price. The consumer version of Pepper retails for approximately $2,000, while enterprise users opt for a leasing model. Companies can lease Pepper from SoftBank for a total of $16,000 over three years, after which the robot must be returned to SoftBank.
According to SoftBank Group’s annual results report submitted this year, these issues were publicly disclosed. In response to Nikkei, the company stated, "We aim to boost business sales and enhance profitability through associated ventures such as apps and content."
Last year, Pepper was introduced at a custom-printed clothing store at the University of Southern California. SoftBank claimed that this deployment led to a tripling of sales and a 20% increase in foot traffic. However, this remains a subjective claim without concrete evidence to substantiate that Pepper continues to attract customers long-term.
Criticism regarding Pepper's utility has grown louder. When Pepper hit the market in 2015, initial excitement quickly turned to disappointment among buyers. The Nikkei noted at the time that expectations were high for SoftBank to deliver groundbreaking applications, even just one. Yet, to date, no such breakthroughs have emerged beyond conversational, caregiving, or gaming functions.
Mashable remarked after using Pepper that its purpose seems limited to providing companionship, such as making jokes or reading menus aloud during cooking.
The real question remains: Do people actually need a luxury chatbot like Pepper?
[Image: http://i.bosscdn.com/blog/5a/b6/15/1f4135e26a112e90eb8e41154e.jpeg] Figure / Nikkei
[Image: http://i.bosscdn.com/blog/4b/2a/47/8eb3c44e27af6184cedc91969d20170412160138.jpeg]
Despite the challenges, SoftBank continues to explore ways to integrate Pepper into various industries, hoping to eventually turn the tide on its financial performance.
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