“Though the new Apple TV isn’t expected to have a streaming subscription service available at launch, that’s not a problem for investment firm J.P. Morgan, who believes the device’s real selling point will be an App Store with traditional console-style videogames,” Neil Hughes reports for AppleInsider.
“To analyst Rod Hall, the massive $34 billion console gaming market is where the ‘real opportunity’ for a new Apple TV lies,” Hughes reports. “Hall’s self-described conservative estimates suggest that every 5 percent of the gaming market Apple can capture will add about 2 percent to the company’s annual earnings per share.”
“Compare that to a streaming TV service, which he believes will not be greatly profitable due to terms with content owners,” Hughes reports. “His estimates suggest that a $40-per-month subscription plan would add just 1.4 percent to Apple’s calendar year 2016 earnings per share.”
Read more in the full article here.
MacDailyNews Take: Would “yet another gaming console” sell more Apple TV units than an affordable cable/satellite TV replacement for which cord-cutters/would-be cord-cutters have been waiting for many years?