Emoitv

Emotiv System, Inc.: It’s the Thoughts That Count

Key Issues:

* Emotiv need to decide whether to continue efforts to convince one of the big three console makers (PS3, Xbox 360, Wii) to enable the EPOC on their platform or to settle for the PC gaming market.

* If Emotiv plans to launch into console market, which one of the big three console makers is the best choice.

* What marketing strategy would best facilitate rapid adoption?

* Do any of the non-gaming applications for Emotiv’s technology seem like better alternatives to gaming?

Recommendation:

Sony is the best choice if Emotiv manages to convince one of the console makers in time for a fall 2008 debut. And the demand of new product needs to focus on hard-core gamers. There is no doubt that EPOC will have a bright future with no matter Console market or PC-Gaming market. I think Emotiv can launch its technology at both of the markets, but what it needs to do firstly is to launch at console market, seek to cooperate with Sony, capture the market and finally aim at other goals.

Console Enabled or PC-enabled

EPOC will gain more profit if it is console-enabled only compared with PC-enabled only. The sales volume of console game is almost five times more than the PC game. As in the appendix 1, the sales volume of console game is $6.6 billion, but PC game is only 0.9 billion in 2007. Furthermore, sales volume of PC game is shrinking from 1 billion to 0.7 billion year by year. It’s obvious that console-enabled market is much bigger than PC-enabled market and would be a more profitable choice than PC. Some may argue that the profit margin of PC-enabled game is much higher than console game, since game developers do not need to pay royalty fee to console makers. However, this only applies to the developers of the games but not Emotiv. Even if Emotiv is PC-enabled only, it still needs to pay the royalty to game developers unless Emotiv develops its own games, which is unlikely for current...