Apple enterting the console world?

[Benstamania]

http://www.appleinsider.com/article.php?id=2282

A recent series of checks by Prudential analyst Jesse Tortora indicate that Apple Computer has hired video game designers and may have aspirations of entering the video game market in long-term.

"We think the video game market represents a distinct possibility for Apple, especially considering that it recently announced the availability of video games for its iPod through its iTunes store," the analyst told clients in a research note on Monday.

Tortora said Apple's design superiority, along with its well-recognized brand name, is sure to provide the company an advantage should it decide to enter the market. He said the company could approach the video game sector in one of two ways -- via a home game console or a handheld device.

"The game console device could be morphed out of some combination of the MacMini and iTV, while the handheld player could be developed as an enhancement to a future version of the widescreen iPod," the analyst explained.

Still, Tortora said such a move "would introduce a complex set of market conditions" for Apple, which has traditionally made its real money through hardware sales. "The video game console market is notorious for subsidizing hardware to sell profitable games," he wrote. "Apple would then have to either rely on the sales of its games and downloadable movies to make enough profit to cover losses on hardware or figure out a strategy to make profits on hardware itself."

Given the challenges presented by the video game market, Tortora believes the company's decision to enter the video game market could depend on its need to defend its position against the competition in the battle over the digital home. He noted that Microsoft recently introduced a video download feature to its Xbox 360 gaming system and said he expects Sony will follow.

"There are no technical limitations to this capability, and Microsoft is already aggressively wooing the movie studios," he wrote. "This could adversely impact Apple’s iTunes Movie download business longer-term, along with its iTV and video iPod sales."

The analysts believes Apple will ultimately have to decide "whether to accept this challenge head-on" by entering the gaming market, or conclude that Microsoft and Sony pose little risk to its business and continue on with its current strategy.

In his note to clients, Tortora said Apple has recently hired game developers at both the software and hardware levels.[/quuote]

My thoughts? Why not? If Microsoft can do it and be succsessful, why not Apple? I just hope they goes with the home console over the hand held. Yes, the iPod is "apparently" great....but when your talking games it's a whole new field.

Nintendo owns the hand held market, Sony picks up what's left. Apple would be dumb to enter the hand held market. Go with the consoles, if that proves succsessful THEN think about going portable.

 

[Havok83]

I sure hope not. I dont think the market can handle another console anyway

 

[patrickbateman]

about time man. WAY to go steveEEEEEEEEEEEE

 

[Isildur´s Heir]

I sure hope not. I dont think the market can handle another console anyway

I totally agree.
Sure, after the Ipod started having video games, to create a console would be the next logical step, because Apple can´t compete with the PC on the computer angle, when it comes to games.
But yeah, there is no market for 4 consoles, 2 japonese and 2 americans.
If that ends to be true and Apple get in the biz, one will be the next Sega.

 

[imdaly]

Does this mean I may FINALLY be able to play "Jigsaw Puzzle" on a console!?!?!?!








t:

 

[ProjectPat2280]

Im all for new consoles, just ups the competition, making everyone try a bit harder. If they can make a good console, i say bring it on.

 

[hippie_hunter]

I don't think Apple could ever succeed in the console market, personally. Entering at this point in the 'console wars' is stupid because very few of them would catch on. Not to mention that Apple is good at ripping people off in the pricing department as it is.

I have to agree that Apple wouldn't make it in the console department. Unlike TVs, computers, mp3 players, and other electronics, the console market really can't handle more than 3 competitors.

Unlike other electronics which are basically all the same and serve the same purpose, all DVD players watch all types of DVDs. You don't see Disney making DVDs that only play with Toshiba DVD players. All computers read all types of software, not Adobe making software only for Dell computers. Each video game console is basically different and can only play games specifically made for that console. Here we can see Konami make Metal Gear Solid 4: Guns of the Patriots only for the Playstation 3 and get away with it (and in someways encourage it). We can see UbiSoft make Splinter Cell 5 only for the Xbox 360. And Nintendo make all their games only for the Wii. The market isn't designed to have a lot of competition and truthfully, it has to stay that way. Apple should not enter the market.

Let them stick to making iMacs which are priced above their PC counterparts and can do near nothing better than PCs.

Word, I hate Apple computers.

 

[tzarinna]

If I go out and buy a console tomorrow,they'll come out with one next week. They do it to me every time.

 

[Shifty]

http://www.appleinsider.com/article.php?id=2282


My thoughts? Why not? If Microsoft can do it and be succsessful, why not Apple? I just hope they goes with the home console over the hand held. Yes, the iPod is "apparently" great....but when your talking games it's a whole new field.

Nintendo owns the hand held market, Sony picks up what's left. Apple would be dumb to enter the hand held market. Go with the consoles, if that proves succsessful THEN think about going portable.

Nokia is giving the handheld another go.

Apple could join the console wars, having Sony, Nintendo and Microsoft for the next twenty-years could get boring. Always need competition and someone to borrow ideas from. They will lack a library of retro games, probably Sega and other failed consoles, so they wouldn't stack up in that category.

 

[Isildur´s Heir]

The only thing good that would come out of Apple getting in the biz would be that, the prices would go down.
Everyone would start to sell consoles at the same price as Nintendo.

But, for Apple to get into the market, they will have to make deals with 3rd party developers, and, the Ipod doesn´t have them.

 

[Matt]

Will the Apple console come with snooty users who act like they are inherently better than everyone who doesn't use one? Because I find Macs usually come with one of those

 

[Crimson_L]

Sounds questionable...

 

[tzarinna]

Will the Apple console come with snooty users who act like they are inherently better than everyone who doesn't use one? Because I find Macs usually come with one of those

I'm not snooty.

 

[BAH HUMBBUG!]

The only reason I don't say **** apple is because it is american, otherwise **** apple!

 

[Matt]

I'm not snooty.

Mac users = snootier than Hybrid car drivers