RUMOR: Apple may enter video game market

“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,” Prince McLean reports for AppleInsider.

“‘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,” McLean reports.

McLean reports, “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.”

Full article here.

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

71 Comments

  1. hedgehogfrenzy: Eh, get over the typo.

    I was just poking perfect little ron in the ribs, not you. Although I did, in fact, notice that you have “updated” the spelling of your handle ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    I read books all the time, I’ve never been able to spell well. In fact, I’m a professional writer (for video production).

    I’m a professional editor for newspapers and the web. You don’t have to tell me twice that writers can’t spell. That’s why editors are still needed.

    I agree that Apple is at its best when both form and function have that seamless “it just works” fit and finish to them, and that’s likely why Apple hasn’t come out with such a box yet. But holy wow, today you could rent or download “Pirates 2: Dead Man’s Chest” or “Miami Vice” and other titles in HD-DVD, or get them on Blu-Ray disc. I’m an Apple person and I’m deeply skeptical of Micro$haft, but they seem to have it mostly right — shockingly — with the Xbox 360, from what I see. Sony stumbled and bumbled, but people will eventually buy the PS3, and it will be in their living rooms/rec rooms/basements.

    Nobody can buy a similar offering from Apple because none exists yet. I want them to get it together and put something out there so that I can get rid of my 360. To me, Front Row is not much different from having a platform game like Mario or Sonic, with the Apple Remote — or a future incarnation of it — as the controller. It would also be a great way to showcase Apple’s supposed graphics-rendering superiority… in some people’s opinions, anyhoo.

    Oh, well… hopefully the wait won’t be too much longer now.

  2. Gamer is right! I think it would be quite easy to add that functionality. THe new hires could be helping with getting games to work on the platform rather than new games. If you count out the exclusive game division of each system, the rest of the games like EA Sports will run on each system. I would guess 75% of all game play is done by a console. If they can come up with a way of adding a $299 box for gaming and the ability of watching your TV downloads and movies, it should sell period. It will be both windows and apple friendly so the games would not have to be ported.

  3. Nothing personal taken about the comments. My sister is a sports editor for the St. Pete Times, so I understand where your coming from there.

    As to the XBox 360, what it does best is online games. Period. You can buy an HD-DVD Attachment for $180, but I hardly see that as a compelling solution. I just don’t see the timing right for the video game thing. I could be totally wrong, Apple could have an ace up their sleeve, but I think the video game market is at a wait an see point right now.

    Nintendo has one strategy, and Sony/Microsoft has one also. They will all be successful enough to survive, but one will make a lot more money than the rest. My money is on Nintendo. Their sexy white box has a lot of people very excited about video games. Apple would need to come out with something about innovative from a game play stand point, and have a lot of game developers on their side. We’ll see.

    I’ve always been a fan of the following strategy:
    1) Enter one market
    2) Own that market
    3) Enter another market

    Apple own the digital music market, and has entered the digital movie market. I’d like to see them own it before video games enter the picture.

  4. no way. this is crap. the video game market is so boring… you’re talking about a market that is seeing DECLINING interest..

    those figures were exactly why Nintendo went about developing ‘wacky’ new ideas like the DS and the Wii..

    Let Nintendo have the video game market.. leave it alone.. Apple has no expertise here..

  5. Why would anyone get into the gaming console market now? Everybody knows you can’t really make money there.

    I like to think that Apple’s got bigger fish to fry.

    Its flattering that more and more people are starting off their analysis of what Apple should do with things like, “…because of Apple’s ability to innovate…”, and, “…Apple’s incredibley successful and proven design philosophy…”, and, “…Apple’s design superiority, along with its well-recognized brand name…”, but, it should also be more than obvioius by now that Apple has not been, nor will it ever be your typical peecee manufacturer. They actually think, rather than simply reacting.

  6. i pick up my nintendo wii tonight. but i would buy anything apple released aswell. just to support them.

    but actually, i dont think this is where apple should be focusing on. I believe they should be working on games for OSX. This is one of the biggest reason alot of people dont switch..because the lack of games on a mac.

  7. I would love to see game design tools for the Mac with the standard Apple fit and finish. My sons play computer games and have done a bit of graphical game making, but there is a gap between diddling around and programming that has not yet been bridged. It would be wonderful to have a seemless transition between playing, modding and developing games (for whatever platform). Hand-in-hand with this could be graphic arts and animation. The learning potential would be tremendous and the buzz among the younger set would be very beneficial to Apple. This strategy would not require a game console at all and would play to Apple’s strengths.

  8. Mr. Peabody: Why would anyone get into the gaming console market now? Everybody knows you can’t really make money there.

    “Gears of War” sold 1 million units for the 360 (and the game’s creator, Microsoft Studios) in two weeks. At $50 to $70 a pop, it’s chump change to Softy, but that’s just one silly little game. Imagine the possibilities, as well as an indication of a significant market with significant uptake and disposable income, and for whom your typical Hollywood pap hardly matches up against an immersive, interactive game experience.

    And I maintain that an AppleBox is needed in the living room… whether physical or virtual, Apple needs one. Video games is one way of incorporating that kind of box into the living rooms of the developed world, both in terms of “mind share” as well as financial recoupment for R&D.

    One AppleBox, please! With Super Mario Universe on it! Thanks!

  9. Apple is not getting into the game market so to speak, they are getting into the content distribution and hardware market for games. Everyone knows Apple does not make a fortune off of its music sales, it makes it off of its iPods. With them getting a TV media hub like the iTV it will make money off of it while selling movies and TV shows. They own the TV downloads, just look at the fact some of the shows are free to watch online but Apple still has a ton of people buying shows. I personally think that Apple has something more about the iTV that we will see later. But look at the iTV how many people are going to buy one for $299. I know a lot of people that buy music and shows from iTunes but none of them are ready to put down $299 for a way to do it on a TV. When Apple goes into things they want to own the market on it. Apple wants the complete package of the Digital Living Room, and that includes gaming. They do not have to have a console like the xbox or Wii, they have a great computer that will be able to play games, do video, music, surf the net, check email, and chat.

    Now it may take a few years to get in there but they will come around, just look at the iTV, they already came out with it and scrapped it.

    http://en.wikipedia.org/wiki/Apple_Interactive_Television_Box

  10. ron: Go play with yourselves. Games-that is.

    I do play games by myself, ron… unless my buddy has time to come over and play. If he’s stuck at home, we can still play via Xbox Live or with thousands of others.

    Like movies and music, games also belong in the family of immersive digital media, and can be streamed or downloaded to various platforms. It’s good that Apple might be understanding that now… even if they’re maybe a little late to the, um, game.

  11. A game console does nothing for Apple – no user experience with the OS or associated software (like iTunes), no 25% profit margin, and a relatively set market of hard-core gamers (which Nintendo is trying to break out of and add to with the Wii).

    If you take Apple as a hardware company, this makes no sense because the consoles lose money. IF you take Apple as an integrated solutions company, this also makes no sense because there’s no real integration: a hardware console and basically no visible OS, just plop in the game disc and play the game.

    IOW, no halo effect for the Mac, and no realation to the iPod.

    Just because Apple and Nintendo are similar beasts doesn’t mean they should share a cave.

  12. Basically a mini on steroids with controllers. Since console makers lose money on the console, the strategy would be to make their “money-making” games play on the Apple unit. In fact pay them a nominal fee (gravy, anyway) so you can put their sticker on your unit – “PS2, PS3 Compatible.” Apple users would lap it up.

  13. Well before everyone goes off thinking about Apple developing games why not consider that to be in th gaming market Apple wouldnt necessarily have to devvelop a console or games.

    The iTV or whatever its called could be a conduit to play Mac system based games right on the tv.

    OR Apple could sell the games via iTunes ready for download into the iTV directly. No need to make a separate console.

  14. What would Jobs do?

    The money is in the software Games, not the hardware. I don’t think this is Apple’s niche. They have never really supported games or game development, so Apple developing a gaming console is a stretch.

    What I do see is Apple BUYING Sony, given all the problems Sony has had in product development and the Battery Fiasco,

    Sony is not the Company it once was. They are ripe for Apple to take it over. Sound weird but There is a lot of stuff in Sony that Apple could ‘assimilate’.

    Mostly Apple would be interested in Sony Entertainment Pictures and the Sony music. This is more content depth for Itunes.

    The Consumer Electronics? Sony computers would be the low, low end macs, maybe or just dump them. Some profit in Video and Digital Cameras, but this could go. Playstation 3 might be worth keeping. flat Panel TVS and Monitors Also profitable. Sony also has a bazzlion patents like Blue-Ray so lots of other hidden gems could be profitable. Plus in the minds of many consumers, Sony is a good name.

    This is more what I would see Jobs do rather than developing a game console.

    Pure speculation on my part- I have no facts to back this up..

  15. It’s not a matter of fear… it’s just that SJ is waaaaay too smart and disciplined to come out with a console. Games for existing and next generation Apple platforms? Easy to see. Now imagine if there were one truly awesome original new game that were Mac only. . . Just a thought.

    One of the secrets of Apple’s revival is that SJ realized they needed to be in the software business to sell the platform.

  16. God damn I hate “analysts”. All they have to do to get their name out there is report something completely loony about Apple, and there’s sure to be idiots who believe it. And it seems like a lot of them aren’t ashamed to do this.

    Here, watch me be an “analyst”.

    Apple has plans to buy Nintendo and together the two will release the WiiPod, a portable device that despite being smaller than a DVD will be able to play DVDs, Wii games, GameCube games, iPod games, MP3s, AACs and iTunes-protected AACs. In addition, you can control it with a motion-sensing remote that has a click wheel. It will also feature a built-in cell phone and two PowerPC G5 processors. The screen will take up the ENTIRE SURFACE of the device, INCLUDING THE BACK, but it won’t be touch-sensitive because the remote handles all input. The WiiPod will be available in late 2007 and retail for about $1599.

    Yay, I’m an “analyst”. Now please pay me lots of money for my bullshit.

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