Apple rumored to enter console wars

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The latest Apple rumor has the computer maker entering the gaming console, taking on Microsoft, Sony, and Nintendo.

In a note to clients published Monday, Prudential Equity Analyst Jesse Tortora said his checks show the Cupertino, California computer maker is hiring video game designers. Mr. Tortora wrote that the hires could indicate a move into either the gaming console market or that Apple could add fresh gaming capabilities to its existing line of iPod music players.

If Apple attacks the gaming console market, it would put the company up against some various serious competition. However, such a move might be needed to keep Sony and Microsoft from dominating the digital living rooms.

Both Sony and Microsoft are relying on their consoles to push new technologies into the living room, posing a serious threat to Apple’s own digital lifestyle aspirations. Apple has been edging into the living room—building the ability to download feature films into its popular iTunes digital media store and announcing plans to introduce a set top box, code named iTV, that will allow users to more easily move downloaded films to their televisions.

However, those plans could be hampered by the game consoles being marketed by Microsoft and Sony. Microsoft has already introduced a movie download service tied to its Xbox Live service, and Sony’s plans to compete with Microsoft’s Xbox Live service with the Playstation 3 could soon push the electronics and media conglomerate in the same direction.

“Ultimately, we think Apple’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,” Mr. Tortora wrote.

Of course, Apple has dabbled in the console market before. The Pippin, a set top multimedia player and game console designed by Apple and licensed by Bandai was a flop in the early 1990s. In May of 2006 it was named by PC World as one of the 25 worst tech products of all time.

However the return of Apple founder Steve Jobs to the company in 1996 helped Apple break out of its mid-1990s slump with a vengeance, meaning the Apple’s mistakes with the Pippin would not likely be repeated. “Apple has already demonstrated its product design prowess in both the PC and music player markets, where its products are considered second to none in terms of design and usability,” Mr. Tortora wrote.

There are two possibilities for Apple. A handheld device would allow Apple to easily build on the success of its iPod music players, which already play a wide array of games. A game console, however, could build on Apple’s efforts its MacMini computer and its plans for the iTV set top box.

Nevertheless, gaming would pose big risks for Apple. Microsoft spent billions subsidizing sales of its Xbox console in its efforts to take on Sony. “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,” Mr. Tortora wrote.

Such risks mean that building on its success with the iPod is the most likely option for Apple—at least in the near term.
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http://www.redherring.com/Article.aspx?a=20160&hed=Apple+to+Take+on+Wii,+PS3?+
 
This would be awesome.... but I seriously dont see it happening....they need to invest millions of dollars in this and enter a stage dominated by Sony and Microsoft....two of the biggest companies....
 
They would have similar or inferior hardware compared to the competition, put it in a white sleek looking box with the apple logo and sell it at double the price. :p
 
They would have similar or inferior hardware compared to the competition, put it in a white sleek looking box with the apple logo and sell it at double the price
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And everyone would still want one.:p
 
Nikhil said:
they need to invest millions of dollars in this
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There's no doubt that Apple has the millions to invent in this idea. They're just not ready for it yet. They'll have a tough time convincing devs to suppport their product as it is and one thing that MS, Sony and Ninty have that Apple doesn't are awesome first party devs that pretty much define each system. Maybe once Apple aquires a few good devs (which will be damn near impossible), I'll probably take them more seriously.
 
Apple will share the same fate as Dreamcast if they enter the console business now. Instead, if they really are considering this, they should attempt at next-gen now. There's room for no other in X360 vs Ps3 vs Wii.
 
Apple should be able to pull it off. But i think game developers are now getting at a stage when they will avoid exclusive titles. Sony, MS will need to do a couple of buyouts each to keep some titles exclusive.
 
apple wouldnt stand a chance, sony and nintendo and Msoft have been at war for years.

it doesnt have that much of a gaming consolic experience, if you know what i mean.

maybe a portable system would be cool .
 
As Ninja said, Apple could enter the gaming industry gradually through handheld gaming first. They already have the experience with portables. As for those who believe that Apple can directly make an impact in the console industry, I think you underestimate this industry too much.
 
This is just a rumour remember. It started afaik because apple hired a bunch of game developers. I guess that must have been to develop some games for the ipod obviously. How that news led to to 'apple rumoured to enter console business' who knows :p
 
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