Emotiv

From a launch perspective, Emotiv is constrained to launch only in the PC segment since none of

the Console Manufacturers seem to be on board to launch EPOC in time and Sony’s offer to help launch a

dumb down version of EPOC is unacceptable since it will drastically reduce EPOCs image from a

revolutionary product to just another accessory product in the gaming segment. Nevertheless, Emotiv

should continue to pursue the Console Manufacturers for the following reasons: Firstly, the PC gaming

market is less than 1/5

th

of the console gaming market by revenue which clearly signals that the console

gaming market pie is bigger and is expected to generate more revenue for Emotiv. Secondly, PC gaming is

witnessing a decline in wake of the runaway success of the new generation gaming consoles. ~40% of ~110

Mn US households are already penetrated with a gaming console which makes it feasible for Emotiv to

choose gaming consoles to launch EPOC. The Console Gaming penetration is expected to increase since

the PC Gaming and Console Gaming markets are inversely related and currently, Console Gaming market is

growing in terms of revenue. Thirdly, the Console Gaming Market Represents a more diverse set of

consumers to target rather than the PC Gaming Market which is concentrated around very hard core

gamers. Having diversity in consumer base is important since a limited set of extremely demanding

consumers might not be open minded to the limitations of Brain Computer Interfaces (BCIs). Lastly, the

Gaming Console users have already shown acceptance to innovations such as Wii and Guitar Hero which

reinforces the fact that the Gaming Console segment will be more open to accept innovations rather than

the PC Gaming segment. The marketing mix that Emotiv should follow can be thought of in a framework

of Awareness, Experience and Conversion, all three of which are critical to the successful launch of EPOC.

Awareness about EPOC can be generated through various online social media platforms and by co-

branding EPOC with the Console Manufacturers. The product can be made to experience to potential

customers through live demos at retailer locations and other locations with high footfall (such as malls,

cinemas etc.) and through live gaming contest. The Conversion aspect of the marketing mix (which

primarily includes Pricing and Channel) can be recommended as follows. Emotiv must choose a market

penetrating pricing strategy to try and capture a large share of the market since competitors such as

Neurosky etc. were also developing BCI technologies and pose a threat to Emotiv. EPOC can be priced at

$199 to penetrate the segment (Refer the exhibit for price and demand calculations) with a forecasted

demand of ~124,700 units (2008) which will include demand from the already penetrated segment and

new demand forecasted from Guitar Hero sales. The possibility of Emotiv bundling the