Logitech is being tactful, but it can’t be very happy with Google at the moment. The problem is that consumers don’t want Google TV, and Logitech makes The Revue Google TV set-top box.

It’s not just that people aren’t buying the boxes. A few people are interested enough to buy it, but then many of that small number were disappointed enough to bring The Revue back to the store. In the most recent quarter, in fact, more were returned than were purchased.

Or put more politely, as the company said in its earnings call Thursday, “Sales of Logitech Revue were slightly negative during the quarter, as returns of the product were higher than the very modest sales.”

Logitech is responding by moving The Revue into the bargain basement and slashing its price to $99, an amount believed to be less than it costs to manufacture, in order to “remove price as barrier to broad consumer acceptance,” the company said. The Revue had been priced at $249, marked down earlier this year from its original price of $299.

“There was a significant gap between our price and the value perceived by the consumer,” as Logitech Chairman Guerrino De Luca said in a conference call Thursday.

Things may change after Google updates the Google TV platform later this summer, which among other improvements will add access to the Android Market. The service currently provides access to the Internet, live television, on-demand programming, recorded shows, pay TV and online video clips.

Related Links:

Logitech’s prepared remarks (PDF) –

Online WSJ post –

Dow Jones Newswire –