Neato, Zeebo!

A global recession isn't the best time to launch a new gaming console.  Unit sales are expected to rise a mere 1.4% globally this year and then decline in 2010.  And the industry is dominated by a trio of monster powerhouses ready to squash any newcomer.  

Enter Zeebo.  Together with mobile-phone chipmaker Qualcomm and with the direction of Boston Consulting Group, startup Zeebo has found an abundance of demand in emerging markets for an affordable gaming console.  While the releases from the powerhouses are simply too expensive for these markets, Zeebo has found room for their product - a moderately priced (and less powerful) console that downloads video games over fast 3G cell-phone networks.  It also offers internet where broadband lines don't exist.

Zeebo is targeting a group that marketers dub the "next billion." These consumers live in developing nations, have rising incomes and modest savings, and together spend $1 trillion annually. This translates to 34 million of Brazil's 53 million households and 90 million Indian households in this nascent middle class. 

With declining market share, Qualcomm has discovered a path toward continued growth by applying their technology to other products such as Zeebo.  This is yet another example of a company with a problem finding solace in the arms of global emerging markets.  The question remains:  Who else can we talk to?

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Brian Swann
VCU Brandcenter / Creative Brand Management / 804-690-7048
www.brandcenter.vcu.edu / swannbr@gmail.com