Emotiv should pursue the PC platform to launch in the beginning, due to:

Highly involved customer segment of teen and adult hard-core gamers being technophiles who are early adopters,
can appreciate complexity of brain control interface games, serving as good incubators for the newly launched
technology, and habitually investing in upgrading their P.C.s and gadgets, are less price sensitive, thereby justifying
the higher retail price of 399$ and favouring their added expense for EmoKey software package for enhanced
backward compatibility, ensuring a better t gaming experience for them.
Emotiv saves on royalty fees of 3-5% in exchange for software kit development costs and installation driver
development costs, leading to higher contribution and fewer losses in year 1 and in year 2.
It is also worth investing in the out of box experience by Demiurge, since it would give the user a feel for the
capabilities of the newly introduced technology of thought controlled interactivity, thereby shrinking the learning
curve of new users and facilitating adoption.
Winning preference with game developers: with high margin incentives and no royalty fees, the PC gaming market
is in itself attractive to game developers. With Microsoft windows OS. being a widely accepted system, it
simplifies design and programming, facilitating game developers to develop blockbuster games around this
technology and encourage sales of EPOC.
Launching in the p.c. market would build popularity, traction and word of mouth for EPOC, thereby addressing the
barriers of console makers: it provides proof of concept to Microsoft, and clarity on the games developed breaks
the chicken and egg cycle which had delayed decision making by Sony.
Therefore, by year 4 of its presence in the PC gaming market, Emotiv can then explore possible associations with
console maker brands like Microsoft or Sony for entry into the console gaming market which comprise 40% of the
110 million US households, and indicates an attractive growth rate in the long term.

Strategic partnership with console makers favours Sony and Microsoft as suitable partners. In order to achieve a
successful Fall 2008 debut, the following marketing mix decisions need to be made:

Product: software development kits and software installation drivers need to be prepared by the console maker.
Pricing: considering that the target segment of both Sony and Microsoft console makers comprise of teen and adult
hard-core gamers and loyalists who are less price sensitive, it is suitable to price the EPOC at a retail price of 399$
which will be acceptable by this target segment. A dynamic price skimming strategy is favourable, beginning with
a retail price of 399$ in the first two years after launch, and moving on to a reduced retail price of 299$ after the
first million units are sold, cost per unit reduces from 110 $ to 60 $ and a healthy unit contribution can be
sustained, more so to cover the 3-5% royalty charges being paid to console makers.
Distribution: considering the choice amidst retailers, e-tailers and the Emotiv website, since it is understood that
the nature of the product demands live demos and physical inspection, retail is the channel of choice. Since
partnership with a console maker entails Emotiv to access the shelf space and marketing support of the respective
console maker, it is possible to reduce dependence on standalone retailing channels and instead develop online
channels of e-tailer and their own website, which generate relatively lower volume of sales, while generating
healthier margins for Emotiv.
Promotion: to resonate with the target segment of console gamers, Emotiv must undertake promotional initiatives
which include, in addition to co-branding with the console maker, campaigns involving rebates: since base price is
high, sizable rebates must be offered. Promotions must also be offered during specific periods to stimulate demand
during 20 specific weeks in the year.
Answer 3) If EPOC is only PC enabled, following Marketing Mix Decisions are appropriate: A) Product: EmoKey
needs to be developed to facilitate backward compatibility and enhance user experience. The openness of the
Windows Operating System confers flexibility and the freedom of gamers co-creating and evolving new
applications. B) Pricing: The retail price of 399$ per unit can be maintained, in view of the fact that the user
segment considers gaming a high involvement activity and regularly invests in upgrading their devices for gaming
experience. C) Distribution: Since the target segment consists of technophiles who may understand the technology
with fewer physical demos, it is possible to include the CD of the Simple Interactive experience, emphasize on the
online e-tailer and Emotivs website channels for distribution, .D) Promotions: Given a target segment which is
closely connected like-minded community, their Word of Mouth is a powerful medium for promoting and
popularizing, to be leveraged by creating buzz through gamer blogs and events.