The Internet search company acknowledged for the first time on Thursday major problems with its Google Glass wearable computer, noting that it was time for a "pause" and a strategy "reset."
The comments by Chief Financial Officer Patrick Pichette during Thursday's quarterly results conference call struck a decidedly different tone from Google's talk earlier this month of Glass "graduating" from the company's labs into a separate division.
Pichette's admission of Glass' failings was particularly noteworthy given that the product has been long championed by Google co-founder Sergey Brin.
As growth in Google's main search advertising business slows, the company needs to reassure investors it can make clear and sober investment decisions, analysts said.
"They're trying to make the point that they're investing in areas that produce results," said Colin Gillis, a BGC Partners analyst.
"You want them to be iterating. But you want them to shut things down things that aren't working. Don't throw money into dead holes," he said.
When Google co-founder Larry Page returned to the chief executive role in 2011 he undertook a series of "spring cleanings," publicly pulling the plug on underperforming projects such as online encyclopedia Knol and a service that let consumers monitor their home energy consumption.