The company likens its product's positioning to Pure Digital Corp's popular, compact, simple and affordable Flip video camera, which has succeeded in the face of digital cameras that can capture video of comparable quality.

ENGADGET: Switched On: The Peek of popularity

Although it was presented in the typical corporate fashion suggesting that Schmidt had been thinking about this for a long time, the simple truth was that Page was anxious about the state of Google and its competitive positioning in the next 5 years.

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