This isn’t super new, but Wedbush Morgan analyst Michael Pachter had some interesting things to say about the possibility of an Apple (AAPL) Gaming Console:
I think Apple has a deliberate strategy. They want to see what they can do with the handhelds (iPod Touch and iPhone) first, then move into console games. Apple TV is the device that they can turn into a console, and they have essentially the same goals as Microsoft–to turn Apple TV into an entertainment and Internet hub.
If they can get enough iPod users to download games, it’s a natural that they can ultimately convince a large number of these users to buy a game-enabled Apple TV. I’d guess a 2012 or 2013 launch. That means that Microsoft has to get enough of a head start to hold them off, which is why I see Natal and a big hard drive for the 360 next year.
I’m not sure how Apple would proceed initially. It’s possible that they open the architecture and go for an Apple TV "App store" to allow anyone to develop games. We’d get cool stuff like World of Goo or Geometry Wars, but probably not super cool stuff like Gears of War until they bought a few developers. Again, it’s the Apple audience they’re after, and they would be perfectly happy if everyone who owned an iPod or iPhone bought Apple TV. The "Trojan horse" is that the device would be an Internet access hub, and that they could then sell movies and other products. What Apple cares about is getting into the living room, and an Apple TV with games has a higher likelihood of succeeding than an Apple TV without.
I think Pachter is on the money here. While the Apple TV has been a failure in some respects, I’m sure it could be easily modified into a video-game console. There’s little chance Apple would enter a technology war with Sony (SNE) or Microsoft (MSFT), so there would be no need for sophisticated, heat-generating hardware. Any Apple gaming console would be more like the Nintendo (NTDOY.PK) Wii – simply, fun, and easy to play.
Game pricing would be a big question for me. Apple’s getting a lot of attention for selling so may iPod and iPhone apps, but many of those titles are of the 99-cent variety.
And perhaps more importantly, can Apple get exclusive gaming content? Time will tell!
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