Analyst: Apple aiming to turn Apple TV into games console

2012 or 2013 launch for Apple TV with games suggests Wedbush Morgan


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In a week when rumours that Apple are working on an 9.7-inch ultra-portable laptop netbook run riot, a report suggests Apple also has an eye on the potentially lucrative video gaming market.

According to an analyst, Apple is working towards adding games to the Apple TV. The device currently lets you watch, rent and buy movies and TV shows, view HD content, listen to music and display photos on your TV.

Michael Pachter, an analyst at Wedbush Morgan and outspoken commentator on the games industry, told Web site IndustryGamers Apple had a clear strategy to turn the Apple TV, hardly a best seller, into an all round entertainment system.

"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," Pachter said in a Q&A. "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."

The analyst pointed to the success of the Apple iTunes App Store, 1.5 billion downloads in just one year announced this week, many of which are iPhone and iPod touch games.

"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," Pachter said predicting a games compatible Apple TV was still a few years away.

"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 (a potentially revolutionary Xbox games controller) and a big hard drive for the 360 next year."

Apple would need to open up the Apple TV, or any all round entertainment system they had in mind, to third party developers to make the device a success suggests Pachter. Big names with well-known gaming titles would need to get on board as Apple would face tough competition from Microsoft, Sony and Nintendo should they open an Apple TV app store.

"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," Pachter added.

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Comments received


sip said on Fri, 17 Jul 2009

Why would I buy an AppleTV to play games when I could just go and buy a Mac-mini?

photosinferno said on Fri, 17 Jul 2009

Arrrrgghhh it's the Rise of the Pippin again ...run away run away!

Beano said on Fri, 17 Jul 2009

I don't think it will be as good as the Pippin!

There are no decent games on any mac platform

bacchus said on Fri, 17 Jul 2009

The Apple TV is a good product. But could be GREAT if Apple get a move on and allow 3rd party access to the device. An Apple TV 'App Store' would bring many more people to the device.

Nathan Massey said on Fri, 17 Jul 2009

+1 for a Apple TV 'App Store'. This is the best strategy to take MS on in the living room space.

Opening a App Store means that Apple can outpace MS in providing users with extra functionality via app's developed by 3rd party developers.

I think we may see a refreshed AppleTV with a App Store as early as September as part of the annual iPod event.

The question is what will Apple's gaming controller look like, or will it even need a controller (a la Natal) or maybe you just use your iPhone (like the Wii controller).

Nacho Man said on Fri, 17 Jul 2009

Would need a lot better hardware than current models and will end up like ATV - a hobby games machine.

Missing the point? said on Fri, 17 Jul 2009

I think this article and many of the commenters are missing the point. Apple sells iPods, iPhones, Apple TV, computers..... and they all work well together.

As new software is released,,,, they ALL get more powerful and work together.

True, Apple will NEVER be a game machine to the purist... but purists do not spend the big bucks. Just look at the Wii.....

Apple is possitioning themselves as the All-in-one solution. Don't want to be a geek but do want to have the fun??? Buy Apple.

It must be doing well for them, their share is climbing and climbing.

Just a thought.
en

No point Missed said on Fri, 17 Jul 2009

No, the phone share is climbing. OS X is static as ever.

gs.statcounter.com/#os-ww-daily-20080701-20090717

Want lock-in and limited games - you guessed it - buy an Apple Games console.

fu

Pete T said on Fri, 17 Jul 2009

Would not buy another game station as XBox & PS3 are so far ahead with games & add-ons.

What worries me would be that Apple would go for very non-standard and so no 3rd party companies would bother building add-ons at a decent price.

Without a really powerful CPU & graphics card you may as well buy a Wii rather than starting from scratch.

spyinthesky said on Fri, 17 Jul 2009

Not sure if they wait till 2012 that they would have anything new and appealing to bring to the show. The wi has shown the way and the others are desperate to copy or outdo the advantages Nintendo currently has. 2012 unless there is a completely difference approach of which no one is aware presently is too late.

James said on Fri, 17 Jul 2009

In your article you have this quote: "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."

Interesting that Microsoft also wants the Apple TV to be an entertainment hub.

No point missed said: "No, the phone share is climbing. OS X is static as ever."

Wrong, the iPhone and iPod Touch's operating system is OSX. Not static at all.

Ross said on Fri, 17 Jul 2009

"I see Natal (a potentially revolutionary Xbox games controller) and a big hard drive for the 360 next year." lol that got to be the funniest thing I have seen in today. I m 100% that Apple with fall flat on their face if they plan to go into gaming industry. One thing having app games another is trying to have real game developers and publishers backing ur console and last time I check MS owns the licences of the majority of them.

Steve said on Fri, 17 Jul 2009

I've been close to buying an Apple TV in the past, but have not done so because the product isn't quite there yet. However, it's within their grasp to change this. For starters, Apple needs better hardware in order to support 1080p video. With that better hardware, Apple has an opportunity to add games, etc. Even just adding casual games would be a huge win and appeal to the masses (like the Wii market). Adding internet access would be an obvious plus.

TJ said on Fri, 17 Jul 2009

I think we'll see a game enabled Apple TV fairly soon, There are already some good developers on the iPod/iPhone gaming front. Sure they may not initially be able to get hold of some of the big titles that the XBox 360 and PS3 enjoy at the moment, but in time you'll see. I think Apple will surprise us all again and the Apple TV will be the next big thing after the iPhone.

ronjamin said on Fri, 17 Jul 2009

AppleTV is the product. Its a computer running OSX with a different UI.

The Touch and iPhone are examples of great product design and growth.

AppleTV can be a DVD player, a video player (downloads), a games consol, an internet access device (WebTV), a tv tuner (YouTube, and new streaming TV).

The AppleTV can gut the cable industry completely. Who needs cable when the internet will deliver everything you need.

The Current AppleTV, which I have, is a good device, but it has HUGE potential.

@TJ said on Fri, 17 Jul 2009

"I think we'll see a game enabled Apple TV fairly soon" - but it has absolutely no potential without a decent graphics card and CPU. The Apple TV has neither and neither does it have a user base.

I do not see any real surprise anytime with that lame device.

Anon said on Fri, 17 Jul 2009

At No point Missed:

Not sure where you are getting your statistics, don't want to go to your unregistered website ;-) but you have no idea of marketshare. Mac marketshare is definitely increasing, all the numbers suggest this, we just don't know exactly how much.

Here is a decent and unbiased source (sounds to me that you would rule it out if it didn't come from redmond...)

arstechnica.com/apple/news/2009/02/mac-market-share.ars

4444 said on Fri, 17 Jul 2009

Why do people try to put Apple in direct competition with those already in a space. Apple doesn't do that. They come at a new category form the side with their own take on things. If they do turn AppleTV into, not a console, but something that can play games it will use the existing App Store I believe and just open it up to AppleTV. No rewriting of games just all the sudden you get a TON of simple cheap games you can play in your living room. Now form there new games may get written specifically for it or the iphone/touch. Some concepts just won't translate. How would they do the controls? No idea but that's Apples problem not mine. Hope they go this route though.

@Anon said on Fri, 17 Jul 2009

"Mac marketshare is definitely increasing" - no, it really are not. Why does anything that is not promoting Apple have to be from Redmond?

marketshare.hitslink.com/report.aspx?qprid=8&qptimeframe=M&qpsp=124

It has flatlined for months, if not years. There is no massive uptake, no great surge, just staying the same.

They missed the Vista boat and will loose out to Windows 7 because it is good, very good. Hate it or not, it will push M$ firmly back into pole position without the need for half the user base to upgrade to an Intel chipset.

@444 said on Fri, 17 Jul 2009

You have a point, but is it enough of a selling point, will it sell? In the current market and economy I am not sure if it's brave or stupid.

"Why do people try to put Apple in direct competition with those already in a space?" maybe because when anyone releases a phone/laptop/desktop journalists on some Mac sites try and match it up against Mac hardware, regardless of the spec.

BTW said on Sat, 18 Jul 2009

This could explain Apple lack of major updates to the AppleTV since its introduction. I think they've been working on it since and we'll see it soon. A rebranded AppleTV for gaming and an Apple branded netbook are two missing pieces from Apple's line-up.

Juan said on Sat, 18 Jul 2009

"I think ... "
"I'd guess ..."

I think you don't have a clue.

What a waste of bandwidth.

idanno said on Sat, 18 Jul 2009

Without a blue ray drive, I would never buy one

@idanno said on Sat, 18 Jul 2009

Apple are still in denial about Blue Ray.

dogchow said on Sat, 18 Jul 2009

Maybe if they develop a killer game controller that could handle games like wow.

qwerty said on Sat, 18 Jul 2009

I think it's now safe to say that you'll never see blu-ray on the Apple TV.

I've got a PS3 and I have a grand total of two blu-ray discs. They're okay but not really worth the money.

And given the state of the blu-ray market I think Sony is the real company in denial about Blu-Ray. Everyone else seems to be chasing the same digital download market.

An app store for the Apple TV makes a lot of sense; it would open up the device for some imaginative uses (not just gaming). Couple it with a decent controller and drop the price to £99 and I might be convinced.

Sticking blu-ray on it and putting it up to £300 would be daft though. Most people seem nonplussed by Blu-ray.

Brian said on Sat, 18 Jul 2009

I just see it going the same way as Apple TV - nowhere.

Moog said on Sat, 18 Jul 2009

Pippin!

Baskaran said on Mon, 20 Jul 2009

Another competitor to XBOX?
Why everyone beats Microsoft on its own 'games'?

Give Balmer a break!

Dennis Stevenson said on Thu, 23 Jul 2009

Juan, seven comments included 'I think' or 'I don't think' before your own comment. I think people have the right to express their thoughts as they choose. Do you not open yourself to a claim of 'wasting bandwidth'? Let's debate issues - not people.

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