1. Case analysis:
Emotiv systems, inc.:
it’s the thought that count
By:
Group No: 11
Yogesh Garg
Surendra Singh Negi
Aditya Mani
Vikas Dahiya
Tarun Behal
Nisarg Trivedi

2. Synopsis:
• Emotiv systems- a San Francisco based company is launching
the innovative Brain Computer Interface (BCI) technology
which converts brain signals or emotions into digital form.
• Emotiv had developed a headset using
Electroencephalography (EEG) technology. It reads the brain
signals of the person and is transmitted to the computer to
convert into digital form.

3. Cont…
• Tam Le and Nam Do are in dilemma of whether to launch the
EPOC headset on PC Platform or to go about integrating EPOC
with the console platform with one of the “big three” console
makers.
• They are also focusing on the marketing strategy to be
adopted for quick adoption in either case.

4. Key Issues
• Single platform v/s Multi-platform..??
• Marketing (Pricing, Promotional, Distribution) strategy of
EPOC.

5. Single Platform v/s Multi-platform
• Console Market:
– It is a huge market worldwide.
– Its sales are projected to reach $40 billion in 2007
– In U.S., 40% of household had a console device.
– The “big three” console makers – Microsoft (Xbox 360 console),
Sony (PlayStation 3, or PS3) and Nintendo (Wii) – has the great
brand equity.

6. Single platform v/s Multi-platform
Console Market:
– Association with console makers may even help in boosting the
adoption in PC gamers.
– Trend in console gaming is booming (Guitar Hero & Wii System)

7. Single Platform v/s Multi-platform
• PC Market:
– Emotiv has to persuade only the game developers to create EPOC
supported PC games.
– As the PC games are compatible with Microsoft Windows operating
system, Emotiv may have a greater control when EPOC is released.
– No royalty to the console makers.
– Emotiv to have higher profit margins
– EPOC to come with premium pricing ($299)

8. Should Emotiv keep trying to convince major console makers to
endorse its technology as part of their platform or is just being PC
enabled sufficient for the launch?
• Yes. Emotiv should first focus on the console makers with
following assumption:
– (There is a certainty with console makers before fall 2008, if not they
should go with PC markets)
• Now options available are:
– Microsoft (Xbox 360)
– Nintendo (Wii System)
– Sony (PS 3)

9. Cont…
• Why not Microsoft (Xbox 360)..??
– Favouring wait and watch approach
– Result in delayed launching
• Why not Nintendo (Wii System)..??
– Satisfied with the motion controller console
– Lack in compatibility to support EPOC technology
– Reluctant to adopt new technology due to phenomenal success of
existing motion detection capabilities of console

10. Cont…
• Why to go for Sony (PS3)..??
– Unexpected success of Wii (Nintendo)
– Provide less features compared Nintendo
– Have internal gaming division
– Popularity with “guitar hero”

11. Marketing Strategy
• Target Segment: Youth
• Promotions:
– Co-branding with console makers
– Ads in game magazines (Wired)
– Blogs
– Game developing contest
• Distribution Channel: Traditional channel against e-commerce

12. Marketing Strategy- Pricing
Parameters Margins $199 $299
Cost of prod. ($60/$110) ($60/$110)
Retailer margin 35% ($69.65) ($ 104.65)
Returns 10% of wholesale
price
Console Royalty 3%-5% - say 4% ($ 7.96) ($ 11.96)
Game developer 2% ($ 3.98) ($ 5.98)
Profit margin
Console model $ 57.41/$ 7.41 $ 116.41/$ 66.41
PC model $ 65.37/$ 15.37 $ 128.37/$ 78.37

13. Alternative Applications
• Medical:
– Psychiatric patients
– Physical disabilities
• Military
• Market Research:
– Consumer behavior

14. Thank You