FEATURE

GDC: Zeebo and the "Fourth Console"

Douglass_Perry's picture

By Douglass_Perry

March 23, 2009

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Citing the 800 million people in the emerging markets of Brazil, Russia, India and China (aka "BRIC"), Mike Yuen, senior director of games and services at Qualcomm, said that the $199 mobile-powered Zeebo will become the "fourth console."

"There are 200 million people in Brazil with a solid middle class, and a hungry, game-buying market," said Zeebo CEO John Rizzo to a 90 percent-filled room at GDC. "Our games only cost 10-20 percent more than the illegally-pirated games, that's $2 to $3 more, and substantially less than any of the major consoles' games.

The Zeebo will launch in Rio de Janeiro, Brazil, in late May/early June 2009 with six games bundled in, plus a total of 30 more in its online store. The simple console uses mobile chips, BREW software and basic connections (A/V, power cables and wi-fi hardware) to make it cheaper than the $249-priced PlayStation 2. In late 2009, Zeebo will launch in Mexico, followed by a launch in India in 2010 and at an undetermined date in Russia.

Zeebo has substantial third-party support as indicated by the live games demoed on-screen, including Quake 1, Crash Bandicoot Nitro and Tekken 2. Official on-board publishers and developers include Electronic Arts, Activision Blizzard, Namco, Capcom, THQ, PopCap, TecToy, GameLoft, id Software and Digital Chocolate.

Games will be displayed in 640x480 resolution, and will be purchased via a simplistic interface enabling users to play, adjust settings and buy from an online store.

"We expect people to flock to this console the way they did to the iPhone," said an optimistic Rizzo.

Update: Corrected the amount of games available at launch. Sorry for any confusion.

Lalian's picture

I think its definately a big gamble. In colombia the market seems very similar to that of Brazil, its actually harder to find a non chipped/ non pirated games than it is an original one. I mean you walk into the centre of any city and you will be hazzled from every corner with games and cheap ps2s. They even sell the ps2 consoles by serial number. Different serial numbers working better than with different chips. Anyone know the polysation. This was a take on the original psone, it was a cartridge run console when the psone was on its last days.
I believe that the market is definately there is a question of making it accessible to that particular budget driven market. Which means some clever adversising which is not going to be shadowed, or at least compared to the ps2 ads. Wasnt there an article here a while back talking about sony, making a push for the ps2 in south america?
There needs to be a clear distinction that the zeebo is not trying to be a ps2.2
I really hope it takes off, as it will provide many new avenues for new types of interaction, as well as educational themed games/apps to an audience whose just getting to grips with controlling the image on a screen.

Dan_Chippendale's picture

I think onlive might have just trumped Zeebo

4thVariety's picture

One inconvenient fact about those "emerging markets":

This console is targeted at a class of people which do not really exist there. Either you are pisspoor, or you are quite rich. 80 million people in India alone have wages and disposable income the size of ANY western European country. They won't be happy with a second rate platform. The people which are poor there can't afford it.

Especially when Sony can compete with its PS2 at a much lower price point, there is little hope for that piece of hardware called Zeebo.

I say it is little more than a dirty scheme to siphon money from investors, pay yourself a big paycheck and run the thing into the ground over a couple of years. Phantom 2.0

E. Zachary Knight's picture

I think you missed the part where they said it will be cheaper than a PS2 in those markets.

The market is there. Just because you don't see it doesn't mean it isn't. These people aren't going in blind they have done some extensive market research into what they people can afford to pay.

Personally, I think this will work out quite well for them. I would certainly consider development for it.

4thVariety's picture

Cheaper than an "official" PS2 priced at $249, but we both know that is an artificially inflated price. Sony is taking the average attach rate, multiplies that with licensing costs, applies the result to the base price and just assumes people will hack their PS2 first thing after buying it. A poisoned well business model. Zeebo might not appear cheaper to consumers when t comes to games.

Live demos of Quake 1 and Tekken 2 also tell you that they are not exactly competing in the technical department either. Good if you have a back catalog for quick no risk conversions, but people in emerging countries do not live under a rock.

People might rather go for an expensive PS2 and illegal copies of good games, instead of a Zeebo with legal copies of outdated games.

Although if you got the iPhone game already lying around, you might as well give them a try. Did they say anything about licensing and manufacturing/distribution costs? For most game developers that will be the largest problem. Who has distribution channels in emerging countries to begin with?

jazzbrownie's picture

Why is there not an article about on-live in place of this one? It's a much bigger deal.

dreamhunk's picture

This console might work in Brazil but out side of that it will not. here is why china bands consoles,russia play with their pc's. In fact russia makes their own pc games.

any there is talk of could cumputer with is alot better tech.

NickgamertagO1's picture

"any there is talk of could cumputer with is alot better tech"

Maybe because I'm from the US I don't understand this kind of "slang" but I have no idea what you just said. Tell me that was intentional.

ArronC07's picture

Photobucket

Huw Jass's picture

"any there is talk of could cumputer with is alot better tech"

That's easy for you to say.

dreamhunk's picture
Pascal_Clarysse's picture

Booth #5128; OnLive. Far more interesting new hardware. Go ahead and tell us, Variety already broke the embargo on it anyway...

AgentCool's picture

This will probably do relatively well in the emerging markets but, in countries such as Mexico and India, it will likely struggle to dent sales of the major players. Don't hold your breath for a UK release though; there's simply no market for it here at all.

Huw Jass's picture

Just had to check my calendar to make sure it wasn't April 1st!

manhattan's picture

This is a truly exciting time for the cash-strapped gamer. Unless Microsoft ruins it all and buys Zeebo out.

yoshter's picture

It reeks of Gizmondo: The Console Edition LOL.
Its interesting, but theres too many other capable competitors already with stuff on the shelves.

E. Zachary Knight's picture

Not in South and Central America there isn't. This console is being marketed in areas where selling the 360 or PS3 or even the Wii would net you a whole whopping 10 sales if you are lucky. That is because only the richest people will be able to afford one. In these areas the PS2 is still high end electronics for the average person. So your comparison is a bit off.

fdelfino's picture

Here in Brazil the consoles and games are all imported, so they are considerably expensive. An average gamer cannot afford to buy a Xbox 360, for example, and keep up with the latest games, due to their enormous prices.

PS2 is still the most popular console in Brazil because we have here a gigantic pirated-game market for it. I guess it is easier to pirate a PS2 game than PS3 or Xbox 360...

That is why most gamers rather play on PC or PS2 than on other consoles: games are cheaper. Period. A PC game in Brazil costs less than 1/3 than a PS3 or Xbox 360 game. The difference is around $50 to $100 american dollars FOR EVERY GAME. It's insane. The consoles are priced around R$ 3.000,00, which is around $1,900 american dollars. Pretty expensive for just a console, to me personally.

If Zeebo is priced fairly, and has a good number of gamers released, I guess it has a market here. The main problem, for what I can see, is compete with the huge pirated-game market.

SaintJude's picture

It needs to be substantially cheaper than the PS2 to make a dent anywhere. I don't know about South America but Russia, in general, is very brand-aware. In non-metropolitan areas having a 'Sony', whether it be a TV or a toaster is a sign of affluence. Established Western/Japanese technology is held in awe.
So the price tag for the Dweebo will need to be A LOT lower than the PS2 for the Russians to buy in. $50 dollars less ain't gonna fly!

SCTakara's picture

Given where their intended markets are? This should be interesting to watch. If its convenient to buy games for it AND competitive with pirated games? I don't know, or really think, they'll take those markets by storm, but they could well be a profitable venture. They really should see about getting newer versions of some of those games, though. Tekken 2? The pirates are selling Tekken 5! Why would a fighting fan go back down to Tekken 2?

Rendszer's picture

well, of course a fan will think that Tekken2 is perhaps not the hottest game around, but for someone who has never seen a tekken game before, it can be a nice experience, and hopefully, newer versions of games can come out aswell.

SCTakara's picture

True, but if the areas are prone to pirated software and have the PS2 available to them, they'll have newer versions of Tekken available. Tekken 2 just seems like a, well, token offering.

Rendszer's picture

I think that the idea is very good. The hardware is good enough, especially that the majority of consumers in that market has not been "destroyed" by the whole graphical "bullshit" that we have now (below 60fps = meeh, No AA no SALE and such).

The games and its capabilities are a good entry solution for those markets. Everybody is talking about that Wii is broading the market, but Zeebo has the potential to do it also, perhaps even more, really reaching to people who never been close or ever seen a videogame before.

If executed well, this can take off very very well... everything that helps to broad the market IS a good thing.

manhattan's picture

By its slick lines, you can tell this is not one of those PS-3600 PS3/360 knockoffs that you can find in cheap flea-markets in less-developed countries. I checked out the graphics (in YouTube) and it's quite fast but the quality is a bit PS2-ish. The controller is a bit of a throwback to the SNES gamepad (which could be good). And in the Zeebo site, the lineup of titles is pretty good. The DLC system looks promising but I guess time will tell if its up to scratch. I guess what will set it apart from the PS2 is the price and 3rd party support.

Dan_Chippendale's picture

Mmmm. Wired controller. How futuristic. This smells of fail to me

E. Zachary Knight's picture

Adding wireless to the controllers would have INCREASED cost. They are trying to keep the thing cheap and so they have wires. Nothing wrong with wires.

AndyLC's picture

Isn't it pretty much a cheap computer made for gaming? That's how profit is made in Brazil and China anyways, this could be interesting.

DubsTF's picture

On the day the Zeebo is geniunely recognized as the "fourth console," I will eat a Zeebo.

OmegaVader's picture

Even if games suffer from high tariffs and necessitate piracy in those regions, they still aren't going to buy into 10 year old games.

Mikail Yazbeck's picture

They might hit the BRIC on the head with this one!

Ozzman_79's picture

I'm not sure being $50 less then the "name brand" of Playstation 2 would be enough, especially if Sony really amps up the PS2 marketing in these territories.

TechRyze's picture

Very interesting. This could be huge...

NickgamertagO1's picture

I'm willing to bet this will go nowhere and fast. Moving on...