Tiger Telematics CEO Mike Carrender has revealed to Next Generation that a new wide-screen version of Gizmondo will be launched next year. The plan is to better compete with Sony's PSP.
"We're looking at bringing out future generations early next year, a wide screen version of our device that's not dissimilar in the size to the screen of the Sony PSP," he said.
The handheld Gizmondo device was launched in Europe in March and is due here in October. It currently has a 2.8-inch TFT screen in comparison to PSP's 4.3 inch screen.
Gizmondo is based on a Samsung ARM9 400MHz processor and the GeForce 3D 4500 graphics accelerator. All of this powers gaming, MP3 functions, MPEG4 movie playback, digital camera, GPS chip plus Bluetooth, and GPRS for networked gaming and text messaging. Games planned include Angel Fish, Colors, FIFA 2005, SSX3 and Stunt Car Extreme.
Pricing plans
The launch price will be $400 or $239 for a unit that accepts advertising. Carrender explained, "[Our pricing] will drop dramatically over time. Out of the shoot it'll be around $400 for the ad-free version and $239 if you take a Smart Ads enabled unit. We'll also have a Smart Ads value pack that throws in some accessories and games that's like $339."
Carrender believes 80% of consumers will opt for the ad-subsidized model, which will aid in building the critical mass of eyeballs necessary to generate a recurring revenue stream. "Think about it, why wouldn't you? Watch just three little ads a day," he said.
"We'll drop our price as time goes by. We will be below them at some point down the road, but we need more units and we need to develop some of the recurring revenue areas before that happens."
Size matters
Carrender is quick to point out the differences in the nature of Gizmondo's stature, business model and hardware features, in comparison to rival handheld units, PSP and Nintendo DS.
"We're not of the size to be able to do what Sony and Nintendo do in shipping their hardware at a loss. They make all their money back in the software. That's not been our orientation. We have to sell above our costs. Obviously that lowers our initial sales somewhat but our early sales are to early adopters.
"[The Gizmondo] is a high powered device with multiple features that really aren't available elsewhere. You have a 450 MHz Samsung ARM processor. Our screen has a resolution quality as good or better than PSP and the Nvidia 3D graphics accelerator gives us a better gaming experience. Our Colors game that's coming out in this Fall, is as good as anything that Sony or Nintendo has. That game is of better graphic quality than anything on the market and [early adopters] will see that.
"And while people think they know how the Windows operating system works because they've seen it on PDAs and whatnot, our hardware is vastly more powerful than anything else that has run it. Our device takes advantage of a lot of that power and it's obvious. We also have the video and MP3 elements [like our competitors] but we're the only device that does text messaging or GPS functionality."
"We think we're a whole lot better value feature-wise, than our competitors. The device just plays extremely well. It's in a different league from anything like the Tapwave [Zodiak] or some of the others that failed."
