Zeebo raises $17M, plans to move away from gaming

The gaming/education platform has announced plans to drop its gaming emphasis

Education and gaming are two industries that don’t appear to go together, especially when you consider statistics that show that more screen time (including computer and video games) has a direct correlation with poor performance in school.  But in the right amount and the right context, gaming can provide a big boost to educational goals, which has a number of startups scrambling to find that perfect solution. 

One such company, Zeebo, recently emerged with its own gaming console to address the education market, and the startup has just raised $17 million in equity financing according to this SEC filing.

The company launched in 2009 with the aim of “helping the next billion play, learn, and connect.”  The Zeebo system, a 3G connected digital entertainment/education platform, came with a console that could be plugged into the TV to wirelessly stream digital content.  Users can also browse the Web, check email, and play games without having to buy DVDs or cartridges. 

But now it looks like the company is changing course.  Zeebo announced on its website that it’s realigning its business operations to deemphasize gaming.  Consequently, the Zeebo system will be taken off shelves and operations in Mexico and Brazil will be shut down.  Instead, Zeebo will be focusing its energy on “interactive education” in India.  The team, it says, is working on a next generation platform launch for 2012.

Originally, the idea was to market an inexpensive console to families in developing markets like Russia, China, India, Brazil, and Mexico.  The system hit shelves in Brazil in June 2009 for $499 BRL (Brazilian reals), or the equivalent of $312 USD, but the price quickly dropped to $399 BRL, and then $299 BRL ($170 USD).

In November 2009, the Zeebo system was released in Mexico for 2,499 pesos ($205 USD), but later dropped to 2,249 pesos ($184 USD).

Zeebo previously raised $8 million in a round of financing led by Qualcomm Ventures.