NEW YORK (TheStreet) -- Nike's (NKE) decision to scrap its Fuelband wearable device came as a shock to all tech enthusiasts, including yours truly. ICYMI, Nike has apparently fired the majority of the team responsible for Fuelband development, a total of 70 out of the 200 that make up the larger Digital Sports division.But the app will continue to be upgraded, according to Nike, which is great news as its social experience and overall items tracked are seriously lagging that of competitors Jawbone and Fitbit.
I personally took this as shocking news as it was about one month ago that I chatted with the Nike Fuelband team. The passion in the voices there was readily detectable, and the team kindly provided insight into the volumes of global data being accumulated by a rubber and plastic device being worn on wrists. I was definitely intrigued by how this data collection would benefit Nike long-term through better tailoring of apparel and sneakers to people's needs, and by opening shops like Dick's Sporting Goods (DKS) and Best Buy (BBY). The analyst in me should have sensed something was up when the conversation was redirected after I asked how the Fuelband design would evolve in the future.
Nevertheless, we did learn at least three things from Nike's decision, besides the Fuelband being worn on my left wrist now being on obsolete collectable to be sold on eBay (EBAY):