Tiger Telematics Inc. said it will delay the release of its high-end Gizmondo portable video-game device in the United States until October. The device was previously scheduled to hit store shelves Aug. 11.
The company said the delay is due to lags on the release of a sports game and a global positioning system navigation application. The company also said an October release would more directly coincide with the critical holiday shopping season.
Tiger plans to have half a million Gizmondo devices on sale by the fourth quarter in the United States. The company promised to provide more information on the launch in the coming weeks, including where the devices will sell. The company said it plans to open its own set of Gizmondo retail stores in the United States. It currently operates a Gizmondo retail store in London.
“We’re mindful that North America is a hugely influential and strategically important market, and we’re determined to package every aspect of the U.S. launch to succeed,” said Carl Freer, the company’s co-founder and chairman. “Right now this means a short-term delay, but the benefits clearly outweigh any criticism we may have to face.”
A Gizmondo spokesman said the device would sell for either $230 or $400 in the United States. The company set up an advertising service to subsidize the cost of the device. Users who purchase the Gizmondo for $230 agree to receive three advertisements every day. Participating advertisers include Sprite, Adidas and others.
Tiger’s device faces some stiff competition in the United States. Nintendo has scored major successes with its GameBoy portable gaming gadget, and PlayStation maker Sony Corp. recently released its PSP device to much acclaim.
However, it appears the U.S. market favors big-name video-game players-Nokia Corp.’s N-Gage mobile-phone/video-game device has faired poorly, and Tapwave recently shuttered sales of its Palm OS-based Zodiac video-game gadget.
Tiger’s Gizmondo device runs Microsoft Corp.’s Windows CE operating system and features a 2.8-inch TFT color screen, a 400 MHz processor, an MP3 music player, Bluetooth, an embedded camera, support for SD and MMC removable memory cards, GPS capabilities and support for GPRS networks. The company sells a range of games for the device in the United Kingdom.
A Gizmondo spokesman said the company has not yet signed up a U.S. carrier to support the device. He said service plans are currently being negotiated.
Tiger currently sells the Gizmondo in the United Kingdom. The company recorded $268,000 in Gizmondo sales in its most recent quarter. The company’s net loss for the quarter was $17.9 million due to Gizmondo marketing and development costs.
Tiger started business in 2001 as a flooring company, selling carpets and rugs, but then got into telematics through its acquisition of Eagle Eye Scandinavian Distributors Ltd. in 2002. The company sold its flooring business to focus on telematics and renamed itself Tiger Telematics. Then, in 2003, the company began developing its Gizmondo video-game device. It quit its telematics business to focus exclusively on developing and selling the Gizmondo, and in 2004, made several acquisitions in the video-game space to bolster its efforts. The company introduced a limited production version of the device last year in the United Kingdom and then began selling the device in earnest in May. The company had previously planned to launch the Gizmondo in the United States earlier this year.
