After Thousands Of Pre-Orders, Ossic’s 3D Headphone Disappears
After receiving thousands of pre-orders for a high-end pair of 3D headphones, Ossic announced its shutdown. The company announced that it will be shutting down. And backers will receive no refunds.
The Ossic 3D Headphone
The company raised $2.7 million on Kickstarter and $2.2 million on Indiegogo for their Ossic X headphone. This particular high-end headphone, as claimed by Ossic, is perfect for listening to 3D audio, especially in a virtual reality environment.
According to the company, this is not the result that they wanted. Their researchers and developers have worked hard and created a production-ready product that is a technological and performance breakthrough. Failing is a tragedy for the company. Ossic said they are sorry and that they have done everything possible to deliver the product. According to them, they have even invested their own savings and worked without salaries to exhaust all possibilities.
In January 2017, Ossic received 22,000 pre-orders for the Ossic X headphone. The company then announced that they were able to ship the first units to the 80 backers in their $999 developer tier headphones. The company then announced they would enter into “mass production” by late spring of 2018. Ossic only shipped 250 pairs of headphones and a few dozen of Kickstarter backers.
The most common reason for the collapse of a company is not being able to get additional funding from outside investors. Ossic seemed to have been misguided from the start. Despite the millions of dollars that they were able to get from crowdfunding and seed funding, they were not able to begin with large-scale manufacturing. They said that it would take an additional funding of more than $2 million to deliver the existing backlog of pre-orders.
It is understandable for backers to be terribly upset after not receiving their headphones. Th A group of Facebook users took action by creating a page. They are threatening a class action lawsuit against Ossic.
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