Today Tectoy is announcing a major breakthrough for the Brazilian game industry: the Zeebo game console. Zeebo is one of those rare systems released outside USA or Japan. This is exactly why it has a high chance of success.
Introduction to Zeebo
Zeebo is a game console based on Qualcomm technologies for high-end mobile devices. It has a nominal processing power somewhat equivalent to a PSP, OpenGL|ES 1.0 hardware compatibility over a dedicated GPU and is capable of 3G mobile network connection (HSUPA), scaling back at 2.5G (EDGE) or 2G (GPRS) where necessary. It features BREW 4.0 as the operational system, three USB ports for joysticks and accessories, one SD card port, and composite video output along with stereo audio. There is no media – games are downloaded through ZeeboNet network, making Zeebo the first of the forthcoming download-centric generation of game consoles.
Clearly the specs of the system aren’t designed to match the technology of the current seventh-generation. But this is not the point. The goal is rather to implement viable solutions for two major problems of the console business on developing countries – price and distribution -, while presenting good value for players.
The Problem on Price
As I once wrote Brazilian game market suffers greatly from piracy. The first major reason is price.
Due to heavy taxes and high logistical costs, an official console game costs around US$ 110 and PC games around US$ 70. Considering the per capita income is US$ 9k against US’ US$ 47k, one could argue that buying official games is not only 2-3 times more expensive in absolute price, but also 19 times more expensive when income is factored in!
But Zeebo games are downloaded using 3G networks. As a mobile service instead of physical units, taxes are much lower and logistical / manufacturing costs are non-existent. Therefore, games can be priced from US$ 4.45 to US$13.10.
Digital Distribution Is The Key
The other major reason for widespread piracy is the distribution aspect itself. In a country where logistics are expensive due to infrastructural problems and illegal street vendors are commonplace, one just can’t compete on regular terms. Black-market reselers nowadays can get new releases way faster and way cheaper than any regular, tax-payer CD reseler will ever be able to.
But a solid digital distribution model is a viable way to fight back for two reasons. First, new game offerings will be instantly available from ZeeboNet to all players of the country, which is faster than even the fastest black-market reseler. Second, the library available online will eventually feature much more game variety than a street vendor can carry on backpacks. (Also enabling a Long Tail-based strategy.)
Think Global, Act Local
Brazilians do like video-games and play a lot. Despite the fact PS2 never had any official representation in the country, Brazil alone accounts for 2% of all PS2 units in the world. Microsoft estimates over 500 k units of various game consoles are imported every year, and over 300k 3D video cards for PCs are sold every month. But strategies and models of traditional cardboard-and-plastic distribution of global actors have proved again and again to be completely inadequate for the country’s peculiarities.
The game industry needs products and strategies that adapt to local behaviors instead of ignoring them. It needs strategies that treat pirates as the competitors they truly are today and offer sound advantages for buyers of official products.
I firmly believe the Zeebo proposal is a viable business model option that can finally start to monetize and legalize a game market that already exists but is dominated by mafias. No doubt this is a brave move in a country Edge Online once defined as a member of The Lost Continent.
I’ve been working on Zeebo games production for 5 months now and it’s pretty exciting to be a part of this innovation.
UPDATE: also check out my latest post on Zeebo, How To Fight Back at The Lost Continent
[...] is prounded to announce it has acquired the Zeebo Developer status for the forthcoming Zeebo Game Console by Tectoy. Zeebo presents viable solutions for the big piracy problems on those markets, and [...]
I think it is a viable console for another reason: the brew platform allows easy programing of the games, so the variety of titles will be huge.
Now zeebo needs a mascot game hahahah.
I don’t know if you can talk about it, but how will it work for independent game developers? Will Zeebo provide some kind of platform for indie developers to sell their games? Will it need some kind of expensive dev kit?
Hi Rodrigo. This is really a subject to ask Zeebo Inc (www.zeeboinc.com), but as far as I can tell, they are willing to support indies companies in the future. The platform to sell all kinds of games is the ZeeboNet 3G network itself. Dev kit information and pricing is just under NDA, but the goal is to gather as much developers as possible!
[...] [Link] Posted in Games | Leave a Comment [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] http://www.engadget.com/2008/11/16/m…onsole-emerge/ http://texpine.com/2008/11/12/the-zeebo-console/ __________________ Intel Core 2 Duo E6400 2.13Ghz (8x266Mhz) |Intel P965 Express chipset – MSI Neo [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] Mai multe detalii despre Zeebo aici: The Zeebo Console Tex Pine – Game Production and Business Articles [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, Francisco] More details of Tectoy’s Zeebo 3G gaming console emerge originally [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] – Zeebo Incorporated Read – The Zeebo Console [Thanks, [...]
[...] interesting post on Engadget today revealed the release of a game console called Zeebo in Brazil. The basic idea is that the admittedly lower end machine (with processing [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] Okuyun – Zeebo Incorporated Okuyun – The Zeebo Console [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] http://texpine.com/2008/11/12/the-zeebo-console/ [...]
[...] Vía: The Zeebo Console Noticiasvideoconsolas, Zeebo [...]
[...] – Zeebo Incorporated Read – The Zeebo Console[Thanks, [...]
[...] de erros. E aqui os sites de onde tirei as informações, além dos que já foram citados é claro: Tex Pine, Engaget, Folha Online, [...]
Zeebo represents a huge step towards building a mature market for games in Brazil. The strategy used to fight piracy is not only brilliant but also make use of a tchnology that is becoming increasingly popular among the tageted consumers.
I hope this product has a long and profitable life in emerging markets.
[...] links: Website oficial brasileiro do Zeebo Website internacional do Zeebo Tópico na GameReporter Opinião de Tex Pine, um desenvolvedor de jogos que está trabalhando com Zeebo a 5 anos Matéria do Zeebo no blog [...]
[...] then coms the Zeebo, the most important announcement for the Brazilian game industry in more than a decade. Zeebo is a [...]
[...] Interama está orgulhosa de poder anunciar que adquiriu o status de Desenvolvedora Zeebo para o console Zeebo a ser lançado pela Tectoy no ano que vem. O Zeebo apresenta soluções viáveis para os grandes [...]
[...] is proud to announce it has acquired the Zeebo Developer status for the forthcoming Zeebo Game Console by Tectoy. Zeebo presents viable solutions for the big piracy problems on developing countries, [...]