Stefan Eriksson - Gizmondo

Gizmondo

In 2001, Eriksson joined Carl Freer in the UK based company Gizmondo, which intended to rival Nintendo and Sony for the handheld videogames market. Through some innovative financial transactions, Freer had been able to take his British electronics company onto the Nasdaq exchange and raise millions. Eriksson's salary in 2004 was £1.1 million with bonuses amounting to another £145,000, and a car allowance of £5,000 per month.

In an attempt to promote the product, Eriksson competed at the 24 hours of Le Mans. He arrived in a grey Enzo Ferrari and entered the race in the Gizmondo-sponsored Ferrari 360 Modena GTC in 2005 but would retire into the morning with mechanical troubles. In October 2005, a Swedish paper revealed irregularities in the business dealings of Gizmondo, and the criminal past of some members of management, including Eriksson. Eriksson, Freer and others resigned, and the company filed for bankruptcy after using up $300M, 90% in its last six months. The company was also involved in various litigation: Swedish Ogilvy Group, MTV, and former Formula 1 team Jordan Grand Prix all filed million dollar suits. In August, shortly before his resignation, Gizmondo relocated Eriksson to California for its US launch. Subsequently, questions arose around how a convicted felon like Eriksson was able to enter the country. In early 2006, with ideas similar to now defunct Gizmondo's Smart Adds, the virtual mobile operator (MVNO) XeroMobile was started through Eriksson's earlier partners.