Today Pebble has announced that it will cease all hardware production. Their outstanding Kickstarter deliveries will not be fulfilled but refunds will be issued. Warranties on all existing hardware will no longer be honored. However, the existing smartwatch service will continue… for now.

This isn’t unexpected, we ran an article yesterday about the all-but-certain rumors FitBit had acquired Pebble (and what led to that). Today’s news has turned speculation about Pebble 2 and Pebble Core Kickstarter campaigns into reality. You won’t get your hands on that fancy new hardware, but at least backers will have the money returned.

Perhaps the most interesting part of today’s blog post from the founder of Pebble, Eric Migicovsky, is about how this impacts more than a million watches already in the wild. Service will continue but (wait for it) “Pebble functionality or service quality may be reduced in the future.”

It’s not like this is a unique problem. Devices purchased by consumers that are dependent on phoning home to a server to function is a mounting issue. Earlier this year [Elliot Williams] coined this issue “Obsolescence as a Service” which is quite fitting. Anyone who still has a functional first generation iPad has enjoyed reduced quality of service; without available upgrades, you are unable to install most apps. It’s zombie hardware; electrons still flow but there’s no brain activity.

One of the perks associated with FitBit acquiring Pebble is that they have decided to keep those servers running for watches in the field. A cynic might look at the acquisition as FitBit reducing competition in the market — they wouldn’t have let hardware production cease if they were interested in acquiring the user base. At some point, those servers will stop working and the watches won’t be so smart after all. FitBit owns the IP which means they could open source everything needed for the community to build their own server infrastructure. When service quality “reduced in the future” that’s exactly what we want to see happen.