The Zeebo game console: Why it matters

You probably are familiar with today's leading video game consoles: the Nintendo Wii, Xbox 360, and the PlayStation 3. But a fourth console of this generation, Zeebo, might matter more.

Zeebo is produced by a company of the same name, with backing from chipmaker Qualcomm. It sports 3G wireless connectivity, ships with four games preloaded, and enables gamers to download a fifth game from the Web for free (as well as others at a cost). Zeebo was made available last week in Brazil for about $249.

Zeebo could change gaming forever.

(Credit: Zeebo)

Zeebo's focus is on developing countries. Although it is hardly the first console maker to try its hand in emerging markets, the big three have centered their development and marketing efforts on North America, Europe, and Asia.

While those efforts have helped form a multibillion-dollar industry, many game makers realize that as with other forms of entertainment, success in developing countries could be quite lucrative.

The Xbox 360 has had some trouble getting off the ground in India due to a perceived high price. The iQue Player, a joint venture between Nintendo and a Chinese-American scientist, was produced for Chinese gamers. And Brazil--the country Zeebo is currently targeting--has had a homebrew console market for quite some time. A combination of pirated and custom development has provided Brazilian streets with interesting hardware.

Zeebo is setting itself up for success not only by targeting a different crowd from the major console makers but also by helping gamers get their hands on games more easily (and cheaply). Zeebo gamers, instead of being forced to go to a local or online retailer to buy a game, can buy games through the console's 3G wireless connection and download them directly onto the system. According to Engadget, the games will cost no more than $15.

The console maker, based in San Diego, is quick to point out that it's not focused on trouncing the competition but rather on providing a complementary experience. Much like Nintendo's Wii, Zeebo is designed for the novice gamer who isn't necessarily vying for beautiful visuals or epic story lines.

Shailendra Pandey, senior research analyst of mobile content and applications at Informa Telecoms & Media, told ZDNet last month that it's that complementary service that could serve Zeebo well.

"Zeebo can help create a large base of basic games users in emerging markets, many of whom will later migrate to more advanced platforms, such as the Xbox or PlayStation," he told ZDNet.

If it's successful (it's too early to tell how well the console is selling so far), Zeebo doesn't want to stop in Brazil. The company is hoping to make its console available in Mexico later this year, in India and Eastern Europe in 2010, and China by 2011.

"We're on a mission to bring the fun and excitement of interactive entertainment and education to those who, until now, have had little or no access to such technology," the company wrote on its Web site. "Today, the top three gaming consoles in the world have little market presence among the rising middle class of Latin America, Asia and Eastern Europe... Zeebo fills an enormous unmet need for digital entertainment and education in Latin America, Asia, and other regions. At the same time, it opens an immense new market for interactive entertainment content and products."

And perhaps that's what is most important about Zeebo.

As a lifelong gamer, I expect new consoles every six years, and I wait for new games to hit store shelves every week. These habits, while not familiar to every American or Japanese urbanite, are completely foreign to those growing up in developing countries. For the most part, gaming hasn't even scratched the surface in developing countries.

Effectively bringing video games to developing countries will significantly increase the industry's popularity and influence. As video games become more popular and more profitable for companies, they can only enhance gamers' experience.

Video games will hardly solve the world's problems. But if companies like Zeebo succeed, gamers in the United States, United Kingdom, and Japan will potentially have more dynamic games from which to choose, thanks to more gamers and more developer revenue. And those in Brazil, China, and other countries where video games have yet to add color to the entertainment landscape might enjoy games for the first time. We could all win.

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[DannyMD]

Wish them luck, but with Streamming services becoming more available, and bandwidth cost more affordable, the console comes to market 5 years to late. DOA :(

[gefitz]

That's why they're not marketing the unit in the US, where broadband is indeed already "affordable" and ubiquitous (well, almost), compared to countries in South America, Central America, etc. In developing countries, where they hope to grow, the cost is still high.

Of course, I'd hardly call Brazil a "developing country".

Interesting, though, the high price of that console. Does that pay for the 3G access? If not, they'd have some work to do in getting their prices down.

[Thranx]

$250 in "developing" countries isn't going to fly. Maybe Brazil and Mexico, but still in that price range, I would assume the folks in those countries that are going to fork out that much cash will pickup a main brand console, not an unknown.

[jarturof]

Developing countries at $249 usd, consoles in Brazil must be very VERY expensive if they think that is a third world price.

Another "but" in the equation is the 3G, the prices of 3G (if there is 3G in those countries) is exessive, I don't get how it is a "console for the people" when it is as expensive as the Wii and you need to pay for the 3G connection.

I think poor countries will continue using PS2, Wii because they can get pirate copies of the games.

Zeebo may be an answer of how to "combat" piracy, you can't get a game otherwise but from them.

[dcardozo]

The problem is not the console price, but the games.
$250 can be afforded, although not easily, because it's a one time expense.
but $15 each game is way too much for a third world country.
Think of $5 a game, and at that level you can start selling.
I know, because I do live in one of those countries :)

[ghostfear]

Something about third world country most of you don't get it. In third world country, tech buys are more focused, they will pay $100-$200 for a cellphone, buy ride bikes, seat on home made tables. They don't go with complete tech picture as most of us do. They will play games on a small tv on the mud floor. They are poor because they don't have everything, but, selectively, they can afford one or two tech products. It is normal for a third world country person to spend two months of pay on one high tech product because that is all he will have for a long time. Each device they own are far more valuable thus enjoyable to them than for us.

[CyStarkman]

@ ghostfear

Thanks, that was both a real and educational comment.

[DannyMD]

Why pay 250 if you can buy a PS2 for 99 and get all the games you want? You can trade games with friends and neighbors, etc... It's a neat idea, it just doesn't have legs to run, unless they can get the hardware subsidized.

[tipoo_]

Well it fits...Qualcomm makes low power, low cost processors, which is probably what they are aiming for here.

[cozappz]

As DannyMD said spending $250 when a $99 PS2 is just around the corner and a modder is across the street makes this console DOA!

[rrskda]

I'd written a bit about Zeebo since I'm interested in whether it will come to China--my thoughts are that, like others have mentioned here, the price for the system and games is too high. I don't know what market forces are like in Brazil, but in China, at least in Beijing, those prices won't fly. Another problem entering the China market is that currently almost all consoles are banned, including the Xbox, PS2/3, Wii, and PSP (the DSi may be allowed, not sure). If Zeebo wants to come here, it's going to have to convince the government to allow it.

Another point I will add is that as far as I've seen, there are no online or multiplayer capabilities at all other than the game distribution platform itself--a serious flaw, considering how networked the world has become. (And offering Quake I and II without multiplayer? Honestly, what's the point?)

I remain optimistic and supportive of Zeebo overall, I think using 3G is a good idea and I hope it works. At the risk of shameless self-promotion, my longer post about it can be found here:
http://killermelons.blogspot.com/2009/05/zeebo-launches-in-brazil-china-next-no.html

[antoniokhouri]

I live in Brazil and have been researching this a lot. The market here is ready for more competition with consoles and we want them, but the import taxes are so high. You can't imagine. Tectoy, the company behind Zeebo, helped bring in these taxes to protect their garbage products. We'd rather have a Wii or PS3, trust me, but for now, we're very happy with the PS2. It's cheaper and has better, cheaper games. Yes, it's pirated, but piracy is a reality here. Tectoy helped to create the black market they're now trying to fight against.

Well, these are the best links I've found discussing the Zeebo in each BRIC country:

Brazil: http://missokistic.blogspot.com/2009/01/zeebo-dark-horse-or-doa.html

China: http://siliconhutong.typepad.com/silicon_hutong/2009/06/zeebo-and-its-six-big-challenges-in-china.html

India: http://www.gamingindians.com/2009/03/why-the-zeebo-will-fail-in-india/

Russia: http://www.youtube.com/watch?v=9asznW7vGsY

[NervClaX]

That just sucks, man. I feel for ya.

[NervClaX]

Using a 3G wireless connection to download console games? Do you know what it costs to call Mexico? Your wireless bill will be higher than the cost of the game you downloaded.