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No, that's not how this appears to work.

See here for one instance where that parameter is used:

while not connected and not rospy.is_shutdown():
    try:
        listenWS(factory, context_factory)
        rospy.loginfo('Rosbridge WebSocket server started at {}'.format(uri))
        connected = True
    except CannotListenError as e:
        rospy.logwarn("Unable to start server: " + str(e) +
                      " Retrying in " + str(retry_startup_delay) + "s.")
        rospy.sleep(retry_startup_delay)

As you can see, retry_startup_delay is used to throttle the while loop there, as whenever the "Rosbridge WebSocket server" cannot be started successfully, it skips to a rospy.sleep(..) which will delay for retry_startup_delay before trying to start the server again.

So this is different from respawn in roslaunch's case, as that deals with restarting processes, while retry_startup_delay only delays internal initialisation of a web socket server.