With devices such as the Nvidia Shield Android TV, the Amazon Fire TV, Apple TV and the recently launched Razer Forge TV, the set-top gaming box market is looking increasingly crowded. However, French technology company, EMTEC, believes that there’s room for one more, and it’s taking on some of the biggest names in games and retail with a small device called the GEM Box.
Retailing for $99, the GEM Box comes with a GEM Pad controller and connects to televisions to play Android games on the big screen. It is also one of the only set-top boxes that supports the GameFly Streaming service in addition to streaming games from PCs over an in-home network if the computer has a Nvidia graphics card. Furthermore, users can mirror content from their mobile devices, including iPhones.
Brent Kovalsky, director of sales at EMTEC and Nathalie Lamri, the company’s marketing and communication director, spoke with [a]listdaily about entering into the growing market of gaming set-top boxes and video game streaming.
Three years ago, before Lamri joined the company and took charge of product development, EMTEC was only involved in storage products such as flash drives, hard drives and SSDs. As storage evolved, EMTEC realized that it needed to branch out into new categories, and it found a niche in developing 3D rubber USB drives that come in different shapes, such as animals. This amplified EMTEC’s presence in the retail market and helped form key relationships with retail partners, which opened the door for new creative products such as the GEM Box.
The GEM Box is EMTEC’s most distinctive product, and it’s a key part of the company’s push into becoming a better-known brand in the US. Another key component is video game streaming, which the company believes is the next streaming service to explode, the way Netflix, Pandora and Spotify did in the past.
“The set-top box and smart TVs market is booming,” Lamri said. “If you look at all the smart TVs and set-top boxes, whether it’s Amazon, Apple TV, or the Google Chromecast—and now the GEM Box, which focuses on games—we believe that the market is going to boom on the Android side, along with game streaming.”
“If we look at the millions of Roku and Amazon TV boxes that have sold, we know there’s a huge market for it. But there’s not one that’s focused on gaming,” Kovalsky added.
Lamri initially partnered with a company called PlayCast, which was subsequently purchased by GameFly, which is why EMTEC enjoys a close relationship with the service. The GEM Box was developed with the realization that the future of gaming is digital, and what makes the console unique is its specific focus on gaming. The console launches later this month, and it won’t natively support apps such as Netflix or Hulu, although it may be possible through a third party app store. Kovalsky states that the company recognized that there was a niche in the market and that the GameFly streaming service would give the GEM Box the edge it needed to stand out.
Although there are a number of game streaming services available now, including Nvidia’s GeForce Now for Shield devices and Sony’s PlayStation Now, Kovalsky explains that “there are no big players out there that have been able to secure any service that has hit the mass market yet.”
When asked about competing set-top boxes such as the Nvidia Shield and its GeForce Now service, Kovalsky responded: “The Nvidia Shield is not a mass market product. It’s really targeting PC and Xbox users. It’s a premium product, it has a high price point, and it needs very high internet bandwidth—a minimum of 50 Mbps. For us, we’re targeting the mass market with the $99 price point and all the different ways to game on the box. The GameFly service only needs a minimum of 5 Mbps, but we suggest 8 Mbps.” He also stated that the average bandwidth in the US is around 11 Mbps, so the GEM Box can be used without any additional upgrades.
According to Kovalsky, GameFly is the ideal partner because it has the best global coverage and a recognizable brand name in gaming from its physical business. GameFly Streaming currently sports 72 games, and about 3-5 will be added each month. The service will also be helping to promote the GEM Box console.
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“I understand that we’re not the biggest gaming name out there,” Kovalsky continued, “but there are so many different ways to game on the box. It comes with four free pre-loaded Android games, which gives you something to play right out of the box without having to download anything.” The GEM Box also includes three emulators to appeal to more tech-oriented gamers that want to play vintage games.
Additionally, EMTEC will continue to add Android games to its GEM Store, which features titles that are tested by the company so that they are guaranteed to work with the console and its gaming controller or a wired Xbox One gamepad. At launch, there were roughly 160 games available.
“On the GEM Store, we have found about 160 games on Android that are super good to play on TV,” explained Lamri. “That means you can play it on the big screen with a gamepad. This was not the case one year ago.”
Although there are no exclusive games for the GEM Box at this time, Kovalsky reveals that EMTEC is working to create a selection of games that may be specific to retail partners. Perhaps in the future, a retailer like GameStop could offer an exclusive GEM Box game. Although Kovalsky admits that some partners are still feeling a little burned after products like Ouya, they all recognize and accept the GEM Box as a great product. That’s why the biggest push will be to promote the GEM Box online and encourage customers to pick it up at Target or Walmart through their respective websites.
EMTEC has a marketing relationship with Gameloft. “As you’re playing their games [on the GEM Box], you’ll see our logo—or something of that nature,” said Kovalsky. Additionally, when users are searching for Gameloft games, they’ll find marketing campaigns mentioning GEM Box.
Kovalsky also states that the GEM Box is a very attractive alternative or addition to traditional consoles such as the Xbox One or PlayStation 4 because it is such an inexpensive introduction to video games. “I’d say the best reason to pick up the box is the affordability, all the features, and all the ways to game,” he said. “If you’re looking for an inexpensive way to get into gaming, this is it. You get a great value for what you’re buying. It’s a very inexpensive way for a family to game. A lot of the games on the GEM Store and GameFly Streaming can be played in multiplayer split-screen.”
Given its cute USB memory cards, EMTEC is a family-friendly brand, and the GEM Box is designed to fit into that. “The target audience for us, with all that we’ve put into the box, is family,” Kovalsky explained. “But I also think it hits that techie side because Android is an open platform. It’s a family price point, but it also appeals to that core gamer who wants to stream from the PC or play with the emulators. Plus, the GameFly service is very well received, and it has some pretty good games on it. The value is extraordinary.”
