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C|Net: Why Apple Should Build a Game Console
by , 1:05 PM EDT, May 9th, 2008
Apple wants to get into growing businesses that affect people's tech lifestyles: computers, cell phones, music players and TV set top boxes according to Don Reisinger at C|Net. So it would be a logical next step for Apple to build a game console.
Yet, Apple hasn't gotten into the game console market, another lucrative tech lifestyle market.
[Apple] "has shown time and again that it's committed to being your middleman in almost every way and after it dropped 'Computer' from its name and started to broaden its horizons, showed us all that what it really wants is to dominate your home. And what better way than with a video game console?" Mr. Reisinger asked.After all, the war for the American electronic living room is just getting started.
The argument lies in demographics. "Today, gamers are more likely to play online, download movies and TV shows with their consoles and do many of the things already found on Apple products," the author noted. "And with such a powerful piece of software in iTunes, there's no reason to suggest the console couldn't be tied to the platform and become yet another way to use iTunes to download music, movies, TV shows, and now, video game demos. Simply put, the infrastructure is in place and ready to go."
There are hurdles. Apple would have to open up the system and play nice with all comers who want to develop for the platform. It should be more like the Xbox 360 than the Wii, but offer Apple's signature level of convergence. [In addition, the game console market has the traditional "give away the razor and charge for the blades" business model. Apple has been consistently averse to developing hardware that doesn't make money on its own merit.]
"And while some may wonder if it's really the best move for a company that's trying to command a variety of markets, I think it's the next logical move for the company that's trying to control all facets of the home," Mr. Reisinger concluded.
TMO notes that Apple also likes to be a leader. Sony, Microsoft and Nintendo have a heavy penetration in the game console market, and the Xbox has long been a money losing venture for Microsoft. Apple would have to bring something very new to the game to get traction in that market. Time and technology could eventually changes the rules.
Observer Comments
Fri May 09, 2008 2:24 pm Subject: Does nobody remember Pippin?
This is a bad, bad idea. Apple jumped into the phone market only because there was the potential to make something better than everything else out there. The video game market already has 3 huge players who are constantly delivering new experiences and ideas.
Apple tried this with the Pippin in the 90s and it completely tanked. Nobody supported it, so it arrived stillborn. Unless Apple can get the support of game publishers *before* creating the machine, it's not going to happen.
Fri May 09, 2008 2:25 pm Subject: Does nobody remember Pippin?
This is a bad, bad idea. Apple jumped into the phone market only because there was the potential to make something better than everything else out there. The video game market already has 3 huge players who are constantly delivering new experiences and ideas.
Apple tried this with the Pippin in the 90s and it completely tanked. Nobody supported it, so it arrived stillborn. Unless Apple can get the support of game publishers *before* creating the machine, it's not going to happen.
Apple should just go ahead and get in bed with Nintendo.
Start moving the AppleTV and the Wii together so that they're compatible products. NOT replacements, you'd still own both.
For example, change the AppleTV so that it works with the Wiimote and ship 1 Wiimote with each AppleTV. Each device will come with the sensor bar you put on the TV, but if you have both devices you only need to use one (it just emits light, it doesn't take information in).
Then, put iTunes on the Wii so you can stream your music and videos to it just like an AppleTV. Game developers can use it to let you listen to your music WITHIN a video game. Likewise, put some of the Wii online channels onto the AppleTV so you can browse your Miis over there.
They can each hold back just enough features to make sure you need to buy both devices (AppleTV has no games and Wii can't stream video, for example) but once they've done that there's no end to the amount of interplay and syncing these two devices could do.
If done right, everyone who buys just one device will suddenly find many reasons that they want to buy the other. It could work out well for both companies.
I don't buy that argument. If Apple had something totally unique or revolutionary to offer, then it would be a possibility. Haptic response TV screens, anyone? We can all be hovering over our glowing tubes in the dark, like moths.
With a comment like "It should be more like the Xbox 360 than the Wii ...", it shows that the author obviously doesn't understand the how's and the why's of Apple's product development. Jesus... I am often amazed at how some of those hacks over at C|Net get paid to write and review.
QuoteLike YouTube, games are pretty much a value-added service. I don't think anyone ever surmised that DirecTV was going to take over the gaming market just because they crammed some cheap entertainment in the back channels.Guest wrote:
Apple is already doing this, albeit at glacial speed
I think Apple is much more discriminating than Microsoft... they don't just copy everyone else and try to get into every game, but instead look at the overall market in terms of opportunities: are there untapped or neglected possibilities, and what benefits (hardware sales, mindshare, etc) are there to be had? Can they build a distinct product and not just copy another? In the end, is it worth it? If there's any doubt, they stay away.
I don't see much that they could do differently in the console arena... that battle is expensive and already raging between three well-entrenched entities. Instead, I think Apple might view the iPhone as a gaming platform, competing with only Nintendo and Sony. There are good reasons to think they might do this... much less risk (the hardware is already there), a distinct product (the DS and PSP don't make calls and aren't carried regularly by users above the age of 14) and an easy mechanism for delivery (iTunes), making the cost of games less expensive. Perhaps most of all, they can continue to control the whole widget and call the shots. And as the iPhone marketshare rises, developers will view the installed base as a great opportunity (still a ways away from this).
This is much more likely than a console, and seems like something Apple might undertake.
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