Correct
It's a Miss!

I see this as the precursor to the Philip's Compact Cassette.  The need for a simple "pop-in" tape system was clearly identified.  Their mistake was to take the current tape format rather than to consider a slower speed, narrower format.

Only a few years later, in 1963, Philips launched the compact cassette - primarily as a "memo-taker" format of tape magazine.  It wasn't until 1970, with advances in technology that the cassette began to be used for Hi-Fi purposes and become a popular medium for music.  Philips' key to success was allowing the standard to become open so that everyone could manufacture it.  Whilst successful as a world-wide standard, this also meant that a lot of money was lost to their competitors making tapes and recorders.  They did, however, collect a royalty for each cassette made. 

Little did they know that this would eventually result in the walkman!  Hard luck Garrard, nearly got it right.