Honestly, this is how a company should actually be ran.<p>They made a boneheaded decision, everyone called them on it, and they bailed on the decision and went back to the way things were.<p>Now, they should have actually sent a customer survey out before hand, but hey, they can do that next time.
This makes it worse. It means there wasn't an underling cause important enough to split the company. Like licencing deals or possible acquisition that couldn't be disclosed etc.
Changing your mind is a sign of intelligence. I can see how it would have made sense to them to separate the companies, and I think in 5 years or so, that will make sense. I hope they still do the console game rental service that was going to be a part of qwikster, although that's a dying model too.
How to make unpalatable decisions:<p><pre><code> 1) Make two bad decisions.
2) Go back on the first.
3) Hope nobody notices you didn't go back on the second.
4) Praise.</code></pre>
Another on-going discussion is here: <a href="http://news.ycombinator.com/item?id=3093450" rel="nofollow">http://news.ycombinator.com/item?id=3093450</a>