Zeemote, the 3rd...

My dear friends at Zeemote, I've been giving you a hard time on this blog in the past (first here, then here). Now, in my second post on the device (which is, for the ignorant few, a bluetooth connected controller for mobile phones) I issued two concerns, namely

1. distribution (which I suggested would only work with bundling) and
2. usage (the keys, wallet, phone dilemma).

You will have seen that my mood is somewhat mellowing, and this is indeed connected to the fun one can have with this little thing.

So it came as no surprise that on the first point, the good folks at Zeemote have been impressively busy in the recent months. They managed to strike a number of rather noteworthy deals, the perhaps most impressive one (to date) being with Nokia. At the Games Convention, they announced that they would bundle (see? I told you!) the Zeemote controller with some N-Gage-enabled devices. Here's the clou though: it will be tied in through a dedicated little application in a way that allows users to control every game available on N-Gage via their Zeemote, even if the games and applications themselves do not have the precious lines of code in them. And that it is pretty cool indeed as it circumnavigates the dilemma of having a device that no software supports and which is therefore not being used. I played it, it works. Awesome!

A couple of weeks before, Sony Ericsson launched a bundle in a test market (see here), so they seem to be gaining traction indeed. I hear there's more to come soon but I'll wait till the news is out...

Now, as to the other question, namely if people would take it with them? Well, we'll have to wait as only time (and hopefully many users) will tell. What is undeniable though is that the Zeemote lowers the threshold to play as it greatly facilitates access and controls when playing a game on mobile. If users get the device together with their new phone, I am rather sure that they'll give it a try. The device will be best shown off (initially) with games and apps that are hard to control and where users are more likely to be put off playing them with the fiddly controls of a phone. If this is being put to work (which I trust the Zeemote folks are smart enough to embark on), there is a good chance, they'll convince people enough to make them use it more and more. And once they're hooked? The sky is the limit.

And then, there are also uses for it at home: you don't have a Wii but 2 Zeemotes, a TV and a phone? Go on and play! Works! True! Check here.

Zeemote, the 2nd...

I blogged about the Zeemote joystick for mobile phones a while ago (see here). Since then, it seems to have become all the hype: developers at GDC were apparently raving about it (no wonder, as the geek factor is really high: just look at the party photos). I have also had the opportunity to get my hands onto one at MGF last month and saw it in action with Fishlabs Heli Strike 3D helicopter game.

Now: I had not, at the time, made any remarks on the technical ability of this device, and it does play well. BUT I still stand by my grave doubts as to its commercial viability, and I think there are two things one needs to distinguish here:

1) Can it sell? This, I think, is a question of whether or not they manage to bundle it up with handsets. I cannot see this becoming a device capable of shifting serious units all on its on in the Carphone Warehouse or Radio Shack shelf right next to extra batteries, SD cards and headsets.

2) Will it be used? Again, and in spite of its technical capabilities: I cannot see people taking yet another device with them. I said it before, and I say it here again: "Do I have everything I need? Wallet, keys, phone, errm, joystick?" That just doesn't seem to work.

Location, location, location: The future of mobile social networks

What a title, huh? Following the hype on the Internet with Facebook, MySpace, Bebo and all the others, social networks started to see traction on mobile, too. Jaiku (acquired by Google) showed the way. Twitter's next move is waiting to happen. Plazes is waiting in the wings. And then there are all the others still flying under the radar (or, in Silicon Valley speak, operating in stealth mode). These would include people like French Mobiluck and German student-come-entrepreneurs from aka-aki. There is also Finnish venture Ironstar Helsinki whose MoiPal combines mobile, social networks and games.

Most of these companies attempt a rather wonderful thing, namely to bring the networks back into the real world by combining it with location-based (or should one better say: location-sensitive) components. Mobiluck scored early successes with a Bluetooth application that scans the immediate vicinity for other users; think Saudi girls quite literally under wraps having the opportunity to contact that OMG guy on the other side of the club... Mobiluck tells us they scored more than 750,000 downloads of their application, and all with the most basic of seed funding and without marketing. Impressive!

Unfortunately, very little is being published about the actual success of these initiatives. Facebook got some coverage over the release of their Blackberry client, Jaiku more or less went silent since the acquisition by Google (probably working hard to integrate with other Google goodies), Mobiluck and aka-aki is in closed betas, MoiPal continues to grow its proposition but doesn't engage in much PR so far either (some coverage here though). Twitter seems to get their heads down and work (a brief evangelizing piece in the Guardian was about it). Plazes holds a "camp" in Berlin later this month to develop its propositions further but doesn't tell us much more either...

On a strategic level, it may be expected that a couple of online and other media players without a footprint in the space might feel inclined to gobble up some of these guys: if Google leads the way (as they do with Jaiku), others may feel compelled to follow. So where's the big thing?

Social networks are about interaction. Facebook started to gain traction because US college students had an opportunity to organize their social lives. In the US, the relative penetration of broadband is high, whilst advanced mobile use may have to catch up with some European (and Asian) countries. However, the links always are somewhere in the real world, and mobile phones offer the opportunity to actually link back to some real-world beacons, a simple yet incredibly powerful one being location (isn't it so much more exciting to liaise with that hot someone if you know that he/she is within a couple of hundred yards from where you are?). Your mobile is always in your pocket (yes, check now), and it carries the inherent possibility to identify your geographical location right now. Simple, huh? However, simplicity requires that speed, ease of use and reliability of the service are a given. They are the match points - next to absolute reach of course.

The integration of currently existing tools, most prominently IM, is a given here, and most of the companies mentioned above provide for integration of MSN Messenger (or Windows Live Messenger as it is now known) already. And this makes a lot of sense as it is a convenient and now incredibly established way of communication between friends. The integration of IM into mobile social networks also promotes the convergence of the Internet as it is (or was?) known and mobile devices. People who use IM are normally always online whenever they are on their computers. Extending it to mobile is quite literally a no-brainer and moreover the easiest gate of entry: it is nothing new to users, and it adds a lot of convenience to mobile users.

Technically, triangulation (using signal strength with base stations) seemed to have been the game initially. However, as this was too tough to do (deep integration with every carrier, and for rather sensitive data), everyone from early leaders (remember ZagMe?) all the way to Jaiku, Twitter, etc relied and relies on the crudest of things, namely SMS. Facebook has a rudimentary WAP site and a rather cool Blackberry app but then? Mobiluck uses a combination: WAP site, web access plus Bluetooth (a downloadable app using the handsets' Bluetooth functionality). This is promising as it utilizes handset-based features, which does away with long-winding negotiations with every carrier and a much easier available dataset of location data. Now, does it also experiment with a deeper integration with everyone's new favourite feature, namely GPS (see here for the latest on the hype)? Let's hope so! And let's also hope that this will be only step 1 of many to make social networks truly social again -- by interacting with real people in real life contexts.

Mobile Phone Joysticks get money, yes really!

The good folks from MoCoNews report that Boston-based firm ZeeToo whose business is the production of mobile joysticks (yes, you read that correctly) raised a first round worth a respectable $6.9m. We read that "the company’s Zeemote controllers communicate with mobiles via Bluetooth, and enable exchange of data and applications with the handsets. The company has also developed other controllers, including a trackball controller for use as a mouse on a mobile phone, an accelerometer based controller for games that are controlled with motion and gestures, and a special car keyfob designed for use in location-based services (LBS) applications."

I must admit that I am rather hesitant to believe in this venture's success although I naturally wish them all the very best. At least, respectable mobile game developer Finblade (the guys who founded and run IOMO, which was then sold to Infospace) developed a game that is "powered" by the controller. However, I am not sure if people will get used to this ("do I have everything I need? Wallet, keys, phone, errm, joystick?"), and I must also say that I don't think the video in the previous link would appear to entice people into embarking onto that adventure...

US ringtone sales down: Novelty wearing off? Nah!

Broadcast Music (BMI) projects that U.S. ringtone sales will dip to $550m in retail sales in 2007, down US$50 million from calendar year 2006.

Here's why according to BMI: "We believe that the ringtone market's growth has leveled off and the novelty phase has ended." You can read more of it here

I do not think this explanation is accurate. I suspect that it is not novelty wearing off but the kids and technology smartening up: 1) phones and computers often come equipped with Bluetooth now, 2) new phones usually are MP3-capable. The kids have figured out how to transfer their favourite tunes to their phones via Bluetooth.

This might result in sub-optimal loops being cut (i.e. the tones not rolling as nicely as a ringtone as a professionally-made one might) but on $1.99 saving per tone (when the full track costs you a mere $0.99 on iTunes), that is a no-brainer. Also: with programmes like Garage band et al, every kid can cut loops into MP3s, too.

This last bit is perhaps the one that killed it off: if a product is unique in that it is defensible against similar products on other media, pricing is not under direct pressure as it is not directly comparable (e.g. monophonic ringtones and recorded music). If it becomes comparable (e.g. MP3's on mobile phones vs. iTunes), there has to be something special justifying a higher price-point. The higher the difference in pricing, the better that USP has to be. 20-second loop cut by a pro? Not good enough...

Conclusion? Bad piece of pricing policy and marketing, I would suggest. Elementary, isn't it? You've screwed up your own market, folks...