“A recent series of checks by Prudential analyst Jesse Tortora indicate that Apple Computer has hired video game designers and may have aspirations of entering the video game market in long-term,” Prince McLean reports for AppleInsider.
“‘We think the video game market represents a distinct possibility for Apple, especially considering that it recently announced the availability of video games for its iPod through its iTunes store,’ the analyst told clients in a research note on Monday,” McLean reports.
McLean reports, “Tortora said Apple’s design superiority, along with its well-recognized brand name, is sure to provide the company an advantage should it decide to enter the market. He said the company could approach the video game sector in one of two ways — via a home game console or a handheld device.”
Full article here.
[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]
Pippin 2.0?
Is there any reason we should believe that this is for anything other than the iPod?
Buy. Nintendo. Now.
Please, say it ain’t the PlayStationPippin.
I don’t think they have enough money to “buy Nintendo… now.
Note to Apple, just stick to the Mac, the iPod and iTV.
Apple is NOT entering the video game market.
They are hiring game designers to build ipod Games. I cannot imagine them building a gaming console.
2 cents.
-g5
“Buy. Nintendo. Now.”
Yeah. Then switch Nintendo over to Intel…
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I could see them developing some games for iPod and the Mac. They need something to fill that new campus that’s coming.
highly unlikely. game consoles lose money for many years – look at xbox and ps3.
Tortora is a complete arse. You can’t really believe anything he writes. He’s a MSFT/DELL shill through and through and manages to sound bearish even when he’s seeming positive.
Now way it’s for a console. Look at Sony and Microsoft, losing money hand over fist in that market. If anything it’s for iPod and/or iPhone games.
game is too much mess up. there are already three big in the market. if Apple will do, it will be risky, too late. it’s not like 2001 that there was no mainstream market for digital music download. game is already grown enough.
Apple’s too scared to go up against the superiority of Microsoft and the Xbox 360.
Pong is coming to the Mac?
With the upcoming iPhone and a new iPod w/ a bigger screen, I can only assume that they would be developing games for either or both of those. They already manufactur computer hardware to run games, why would they develope a whole new console in the already ever changing and unpredictable market.
You must be really lame and have your head up your rear if you think Apple is scared to take on Microsoft… Get with it!
Maybe you could play your iPod video games through the iTV on your big screen.
Game software developer– can be profitable. Go the Wii route. Fun, not the biggest and flashiest.
“A recent series of checks…”
I want to know wtf this means, please.
Checks with who?
You brother-in-law?
Your barista?
Do you just walk onto the campus and Cupertino and start talking to anyone that happens by?
Please tell us what this process entails, because I’ve certainly heard enough about it lately.
-c
MW: ‘choice’ (is yours – switch now, or spend at least 5 more fun-filled years on NT)
“Buy. Nintendo. Now.” = Buy. Nintendo Stock!. Now.
http://www.roughlydrafted.com/RD/Home/03F96CEB-FAA2-496A-8440-8B9050D672FC.html
In other “news”, checks indicated Apple has hired a new fry cook for the lunch room. This indicates Apple may enter the fast food market.
MW ’07 can’t come soon enough to quench the usual flurry of bullshit rumors.
The Xbox 360 the 3rd most intriguing console out of the 3 on the market. I think Apple would be far more afraid of taking on both the PS3 and the Wii than the Xbox.
The wii looks very cool imo. Hard to compete with that sort of innovation, maybe Apple though………………………
As much as Apple “is a hardware company”, I’d like to see Mac games designed by them in-house. If their OS and other software is so good, couldn’t their games also be that?
MW: ‘job’ as in ‘now there’s a new job for Jobs’.
This is just stupid!!!
Why the F*** would Apple wanne take on the PSP???
It cost far less, and pretty much does the same things, except for one:
The PSP has 5000 times better graphics, and since it’s sony, they actually have a market…
If Apple do this, I won’t buy any more iPods!
(when they unleased the current games, I felt embarrased)
Would be a Mac Tablet
If the mac conntinues to grow, gaming software for the mac would be great. That is a market that they could dominate.
Well for one I think this is a long term research thing. They may use these guys for ipod games but lets look at Apples competition as far as the iPod goes and the “Digital living room”.
iPod – apple got into the mp3 market and changed it forever. Now they are going to do a phone. They are doing it because people are buying the mp3 phones now. Each sale of one of those is one not going to them and the iPod brand. They had to get in so they can keep up but the did it on there terms. They will have a great phone/mp3 player that can be another member of the iPod family.
“Digital Living Room” – Apple sells, music, Tv shows and now movies on the Mac. Well they now have enough people to offer the iTV so we can get our stuff on any TV in our house along with any iPod or computer or soon Phone. They have a huge lead on the others but what they do not have is DVR and games to complete the whole package. I think they will sell the iTV as is first no had drive to see how it goes. Then in a couple of months they will release a new mini that will be a plug in play device to the iTV but with more features like DVR but with a feature that if you want to keep a show longer than a few days you can download it from iTunes for a reduced fee since it is already there. I just paid $399 for a Xbox so I could play Halo 2 and soon Halo 3. That is the only reason I have it. That price is not much smaller than a mac mini but it is not a computer. I think if apple can get kind of game service thru the iTV then people will get a mine to play games with and use as a computer. Xbox is doing movies now. Eventually apple will have to add some kind of game function to keep there lead above the Xbox as an all in one.
Ive always felt that Mac users are usually not real serious gamers. As a long time Mac user I prefer to be creative on my Mac.
I would rather spend time learning a new graphic or music program than spend all that time learning how to get higher points on a computer game.
Apple should just keep going the way they are and people will be using Apple computers to play there games rather than boring PCs.
It would be very cool if they could incorporate their Core Image technology into Mac games, or a new gaming console.
As they will have a ‘set-top-box’ in the form of the iTV coming next year, what would it take to introduce a hand-held controller and on-line games to the platform? The people who’d buy the iTV box will have wide-screen Plasma or LCD tv’s anyway…
Bugger! Gamer beat me too it…
Nah, it’s game designers for iPods and iPhones.
Massmarket, simple, easy-to-play games for mobile devices.
Hugely growing market worth billions of dollars, but you don’t need to invest billions in ‘lost leader’ console hardware and R&D.
Margins are high too, as even most expensive mobile games cost hundreds-of-thousands to produce compare to tens-of-millions for top end console games.
Great! Another way for people to waste their time.
Whatever happened to reading?
Is this why there are very few good spellers around?
Just check these sites to see where things are going, slip-sliding downwards.
I am one who also wishes Apple could buy Nintendo, but that would be a minimum $4-billion price tag. Now I’m thinking that these developers could design games for the iPhone, the iPod, and also iTV or whatever they’re going to call their upcoming STB (set-top box, whether it’s a physical box or a “virtual” one) and use the Apple Remote as the joystick/controller.
If the thing is going to run Front Row anyway, why can’t it run a platform game like Super Mario or Sonic the Hedgehog as well? It’s a no-brainer, really: Apple has to compete with the 360 and the PS3, because the war continues to be what it has been for a long time now: Battle of the Network Boxes. The competition already has their products out there in living rooms. Apple’s losing by delaying, and I hope they have a suitable response coming soon to a living room near me.
Cue Ricky Ricardo laugh…..
As has been said for a while now they may well produce some games especially for the video iPod when it arrives to show how it can and should be done.
nope. no way. not gonna happen.
ron: Great! Another way for people to waste their time.
Great! Another story where ron can tell people what wastes of skin they are and how they should run their lives according to his rules! Yay!
OK, everyone, you heard the man! Stop Having Fun Out There! STFU & GBTW!
Thanks, ron! I’ll get right on it!
MW: My letters to Santa will note that ron deserves a lump of coal in his stocking this year…
Jesse is the best paid and best regarded Wall St. analyst on my street.
And I am talking about my residence (and Jesse’s) street. Not Wall St.
Anyhow, I know everything he writes about has been very well researched.
I am sure he went to Cupertino to really check on this scoop.
Or at least he virtially went, on the internet, going to the best rumor sites.
I can’t wait to buy myself one of those Apple Game Consoles. YEAH ! ! !
Don’t buy any Sony Play Station boxes or MSFT’s XBoxes.
Forget about them and their IBM Cell processor chips.
Wait for the Intel Core 2 Duo based Apple Game Consoles.
Those will be the iPods of the Game market. Go Apple. Go Jesse.
I have said it a million times. The Macs market share will stay low until people can play all the best games right away.
Not only that, but if the Mac can be the best for games and have unique games, it will bring young people over to the platform and get them hooked on iLife, etc.
Oh. I forgot. Not only Jesse Tortora go the scoop on Apple
soon to be released game consoles that will leave Microsoft
eating dust — but Jesse also found out that Apple is already
manufacturing iPhones that will be in Apple Stores in about
six months, he asserts. Check it all out, it’s here:
http://macdailynews.com/index.php/weblog/comments/apple_begins_iphone_production/
Go Jesse. You are the man on Wall Street. (and on our street, too)
I don’t know why everyone thinks the Video Game market is so great. The PSP is getting hammered by the Nintendo DS in sales. For that matter, the PS3 is getting hammered by the Wii in sales.
Sony is loosing $300+ per PS3, while Nintendo is reportedly making some amount of money ($50) per console they sell. Why would Apple want part of a highly saturated market?
Only thing I can’t figure out about my neighbor Jesse Tortora,
if he is such a bold analyst . . .
why he works at a bucket shop called Prudential ?
There doesn’t seem to be anything prudent about my friend Jesse.
Oh well, maybe the name Prudential is just there to confuse the
competition — kind of the guy working at Bear who is really a Bull.
Jesse is a Bull too so I guess after bonus time he could jump over
to go work at Bear Stearns and continue to be a Bold Bull.
hedgehogfreny: Sony is loosing $300+ per PS3, while Nintendo is reportedly making some amount of money ($50) per console they sell. Why would Apple want part of a highly saturated market?
Because Apple wants the living room, yes? Digital media, streaming content, wave of the future and all that? Well, how do they reach that objective? With a box (the so-called iTV). Computer consoles are not enough… generally people don’t have their computers in their living rooms. Therefore, Apple needs a box there. Microsoft and Sony already have multi-purpose boxes disguised as video game consoles. Apple needs to respond, and soon.
P.S. The word is “losing,” not “loosing.”
See, ron? Even fans of video games can spell.
One last thing. I promise.
I just spoke with my buddy Jesse
and asked him if this stuff is real.
He told me: Didn’t you read the word “MAY” at the start of my bold assertive statements?
“May” = Maybe as in tomorrow you MAY win the Lottery;
He said that at Prudential, his boss asked him to make sure he puts “may” when he is totally making stuff up.
That way (legal) compliance is off the hook if a Prudential client tries to sue them for damages caused by Jesse’s lies — excuse me, — by Jesse’s investment banking research.
Thought process’s argument does have a certain logical appeal to it. The iMac, MB Pro and Mac Pro have some fairly decent graphics cards on par with at least the consumer PC market. Having some new, fresh exciting games for Mac would help take some of the under 30, non-graphic designer market share. It would be nice to not have to wait two or three years for games to be ported from the PC platform.
But everyone else is probably right; they’re gonna make new iPod games. Hey, how bout some I can play on my 4G photo???
Eh, get over the typo. I read books all the time, I’ve never been able to spell well. In fact, I’m a professional writer (for video production).
Point is, those “multipurpose” boxes aren’t being used that way. The Sony PS2 and PS3 DVD/Blu-Ray controls suck. The systems are great for playing games, and not much else. None of my friends that have an X-Box 360 use it for media. I personally own a Nintendo Wii, and I didn’t buy it for it’s multi-purpose capabilities, I bought it because it’s fun as hell.
I don’t see how video games are going to increase their potential market much more. People that watch movies and listen to music far out number those that play video games. I believe that Apple’s device will stay focused on music and movies/TV. Unfocused “do everything” boxes never do everything well.
I’d rather Apple release the Office-killer.
hedgehogfrenzy: Eh, get over the typo.
I was just poking perfect little ron in the ribs, not you. Although I did, in fact, notice that you have “updated” the spelling of your handle
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I read books all the time, I’ve never been able to spell well. In fact, I’m a professional writer (for video production).
I’m a professional editor for newspapers and the web. You don’t have to tell me twice that writers can’t spell. That’s why editors are still needed.
I agree that Apple is at its best when both form and function have that seamless “it just works” fit and finish to them, and that’s likely why Apple hasn’t come out with such a box yet. But holy wow, today you could rent or download “Pirates 2: Dead Man’s Chest” or “Miami Vice” and other titles in HD-DVD, or get them on Blu-Ray disc. I’m an Apple person and I’m deeply skeptical of Micro$haft, but they seem to have it mostly right — shockingly — with the Xbox 360, from what I see. Sony stumbled and bumbled, but people will eventually buy the PS3, and it will be in their living rooms/rec rooms/basements.
Nobody can buy a similar offering from Apple because none exists yet. I want them to get it together and put something out there so that I can get rid of my 360. To me, Front Row is not much different from having a platform game like Mario or Sonic, with the Apple Remote — or a future incarnation of it — as the controller. It would also be a great way to showcase Apple’s supposed graphics-rendering superiority… in some people’s opinions, anyhoo.
Oh, well… hopefully the wait won’t be too much longer now.
Gamer is right! I think it would be quite easy to add that functionality. THe new hires could be helping with getting games to work on the platform rather than new games. If you count out the exclusive game division of each system, the rest of the games like EA Sports will run on each system. I would guess 75% of all game play is done by a console. If they can come up with a way of adding a $299 box for gaming and the ability of watching your TV downloads and movies, it should sell period. It will be both windows and apple friendly so the games would not have to be ported.
Nothing personal taken about the comments. My sister is a sports editor for the St. Pete Times, so I understand where your coming from there.
As to the XBox 360, what it does best is online games. Period. You can buy an HD-DVD Attachment for $180, but I hardly see that as a compelling solution. I just don’t see the timing right for the video game thing. I could be totally wrong, Apple could have an ace up their sleeve, but I think the video game market is at a wait an see point right now.
Nintendo has one strategy, and Sony/Microsoft has one also. They will all be successful enough to survive, but one will make a lot more money than the rest. My money is on Nintendo. Their sexy white box has a lot of people very excited about video games. Apple would need to come out with something about innovative from a game play stand point, and have a lot of game developers on their side. We’ll see.
I’ve always been a fan of the following strategy:
1) Enter one market
2) Own that market
3) Enter another market
Apple own the digital music market, and has entered the digital movie market. I’d like to see them own it before video games enter the picture.
no way. this is crap. the video game market is so boring… you’re talking about a market that is seeing DECLINING interest..
those figures were exactly why Nintendo went about developing ‘wacky’ new ideas like the DS and the Wii..
Let Nintendo have the video game market.. leave it alone.. Apple has no expertise here..
Why would anyone get into the gaming console market now? Everybody knows you can’t really make money there.
I like to think that Apple’s got bigger fish to fry.
Its flattering that more and more people are starting off their analysis of what Apple should do with things like, “…because of Apple’s ability to innovate…”, and, “…Apple’s incredibley successful and proven design philosophy…”, and, “…Apple’s design superiority, along with its well-recognized brand name…”, but, it should also be more than obvioius by now that Apple has not been, nor will it ever be your typical peecee manufacturer. They actually think, rather than simply reacting.
i pick up my nintendo wii tonight. but i would buy anything apple released aswell. just to support them.
but actually, i dont think this is where apple should be focusing on. I believe they should be working on games for OSX. This is one of the biggest reason alot of people dont switch..because the lack of games on a mac.
I would love to see game design tools for the Mac with the standard Apple fit and finish. My sons play computer games and have done a bit of graphical game making, but there is a gap between diddling around and programming that has not yet been bridged. It would be wonderful to have a seemless transition between playing, modding and developing games (for whatever platform). Hand-in-hand with this could be graphic arts and animation. The learning potential would be tremendous and the buzz among the younger set would be very beneficial to Apple. This strategy would not require a game console at all and would play to Apple’s strengths.
Go play with yourselves. Games-that is.
Mr. Peabody: Why would anyone get into the gaming console market now? Everybody knows you can’t really make money there.
“Gears of War” sold 1 million units for the 360 (and the game’s creator, Microsoft Studios) in two weeks. At $50 to $70 a pop, it’s chump change to Softy, but that’s just one silly little game. Imagine the possibilities, as well as an indication of a significant market with significant uptake and disposable income, and for whom your typical Hollywood pap hardly matches up against an immersive, interactive game experience.
And I maintain that an AppleBox is needed in the living room… whether physical or virtual, Apple needs one. Video games is one way of incorporating that kind of box into the living rooms of the developed world, both in terms of “mind share” as well as financial recoupment for R&D.
One AppleBox, please! With Super Mario Universe on it! Thanks!
Apple is not getting into the game market so to speak, they are getting into the content distribution and hardware market for games. Everyone knows Apple does not make a fortune off of its music sales, it makes it off of its iPods. With them getting a TV media hub like the iTV it will make money off of it while selling movies and TV shows. They own the TV downloads, just look at the fact some of the shows are free to watch online but Apple still has a ton of people buying shows. I personally think that Apple has something more about the iTV that we will see later. But look at the iTV how many people are going to buy one for $299. I know a lot of people that buy music and shows from iTunes but none of them are ready to put down $299 for a way to do it on a TV. When Apple goes into things they want to own the market on it. Apple wants the complete package of the Digital Living Room, and that includes gaming. They do not have to have a console like the xbox or Wii, they have a great computer that will be able to play games, do video, music, surf the net, check email, and chat.
Now it may take a few years to get in there but they will come around, just look at the iTV, they already came out with it and scrapped it.
http://en.wikipedia.org/wiki/Apple_Interactive_Television_Box
ron: Go play with yourselves. Games-that is.
I do play games by myself, ron… unless my buddy has time to come over and play. If he’s stuck at home, we can still play via Xbox Live or with thousands of others.
Like movies and music, games also belong in the family of immersive digital media, and can be streamed or downloaded to various platforms. It’s good that Apple might be understanding that now… even if they’re maybe a little late to the, um, game.
if Apple does get into the video game market, they should do so by acquiring Nintendo. both companies believe in pushing the envelope of innovation.
A game console does nothing for Apple – no user experience with the OS or associated software (like iTunes), no 25% profit margin, and a relatively set market of hard-core gamers (which Nintendo is trying to break out of and add to with the Wii).
If you take Apple as a hardware company, this makes no sense because the consoles lose money. IF you take Apple as an integrated solutions company, this also makes no sense because there’s no real integration: a hardware console and basically no visible OS, just plop in the game disc and play the game.
IOW, no halo effect for the Mac, and no realation to the iPod.
Just because Apple and Nintendo are similar beasts doesn’t mean they should share a cave.
We need an iPod game featuring the gobbling up little Dell and Vista logos.
Give us Pac-Mac!
Give us Ms. Pac-Mac!
Its for developing games for ipod not for pippin 2 or any console.
Basically a mini on steroids with controllers. Since console makers lose money on the console, the strategy would be to make their “money-making” games play on the Apple unit. In fact pay them a nominal fee (gravy, anyway) so you can put their sticker on your unit – “PS2, PS3 Compatible.” Apple users would lap it up.
Well before everyone goes off thinking about Apple developing games why not consider that to be in th gaming market Apple wouldnt necessarily have to devvelop a console or games.
The iTV or whatever its called could be a conduit to play Mac system based games right on the tv.
OR Apple could sell the games via iTunes ready for download into the iTV directly. No need to make a separate console.
Sometimes that most obvious answer is the right answer. Apple already has a gaming platform–It’s called the Mac™. Perhaps they’re working to build up the library of games available for that platform.
What would Jobs do?
The money is in the software Games, not the hardware. I don’t think this is Apple’s niche. They have never really supported games or game development, so Apple developing a gaming console is a stretch.
What I do see is Apple BUYING Sony, given all the problems Sony has had in product development and the Battery Fiasco,
Sony is not the Company it once was. They are ripe for Apple to take it over. Sound weird but There is a lot of stuff in Sony that Apple could ‘assimilate’.
Mostly Apple would be interested in Sony Entertainment Pictures and the Sony music. This is more content depth for Itunes.
The Consumer Electronics? Sony computers would be the low, low end macs, maybe or just dump them. Some profit in Video and Digital Cameras, but this could go. Playstation 3 might be worth keeping. flat Panel TVS and Monitors Also profitable. Sony also has a bazzlion patents like Blue-Ray so lots of other hidden gems could be profitable. Plus in the minds of many consumers, Sony is a good name.
This is more what I would see Jobs do rather than developing a game console.
Pure speculation on my part- I have no facts to back this up..
It’s not a matter of fear… it’s just that SJ is waaaaay too smart and disciplined to come out with a console. Games for existing and next generation Apple platforms? Easy to see. Now imagine if there were one truly awesome original new game that were Mac only. . . Just a thought.
One of the secrets of Apple’s revival is that SJ realized they needed to be in the software business to sell the platform.
God damn I hate “analysts”. All they have to do to get their name out there is report something completely loony about Apple, and there’s sure to be idiots who believe it. And it seems like a lot of them aren’t ashamed to do this.
Here, watch me be an “analyst”.
Apple has plans to buy Nintendo and together the two will release the WiiPod, a portable device that despite being smaller than a DVD will be able to play DVDs, Wii games, GameCube games, iPod games, MP3s, AACs and iTunes-protected AACs. In addition, you can control it with a motion-sensing remote that has a click wheel. It will also feature a built-in cell phone and two PowerPC G5 processors. The screen will take up the ENTIRE SURFACE of the device, INCLUDING THE BACK, but it won’t be touch-sensitive because the remote handles all input. The WiiPod will be available in late 2007 and retail for about $1599.
Yay, I’m an “analyst”. Now please pay me lots of money for my bullshit.