Could Apple join the console market?

(Q) Could Apple join the console market?

(A) Of course! Anybody can get into the console industry, but not everybody can be successful at it. ;)


But when we look at the bigger picture (i.e., being entertained at home), Apple may be more successful than Sony, Microsoft, and Nintendo ... combined. Mac Mini's iPod philosophy make it a formidable opponent. :oops:
 
Pippin wasn´t designed for be an standalone console because it has some capabilities from the computers like the possibility of connecting a printer and make a schoolwork with it. When Pippin was released it was by Bandai and not Apple.

And with Intel hardware you can make a game console, you only need to adapt the Merom "Centrino" Platform to the needs of a videogame console, making a good design by Jonhatan Ive and sell it as the gaming platform by Apple.

But since Jobs likes to charge a 26% in revenues from all the products that Apple produces the thing could be overpriced compared to the concurrency systems. But a Intel Console with the case designed by Apple is another thing.
 
The console market is already too crowded. Most big companies can enter the console market, but it doesn't make any business sense. Designing hardware is the easy part since all you need to do is outsource the CPU/GPU etc. The hard part is selling enough software to make up the financial loss in hardware. Even MS lost $3 billion to get into the console business. I don't think any normal company wants to do that. Of course there is the NeoGeo route where you sell hardware at extremely high profitable prices, but then you still need software for people to buy the hardware to play them on.

Apple could enter the console market using PC innards to get a leg up on software support, but they need to partner with some game software companies. They also cannot sell the hardware at a loss.
 
The barriers to entry in this market are a huge turn-off for many looking to enter the fray.

The first barrier is branding. Microsoft’s first attempt at this market saw a >$4bn loss which should be seen as sunk cost of brand establishment – even though they only established the brand in 2/3 major territories. Some would argue that the negative subconscious association that Microsoft has with its own name (BSOD) played a large role in exacerbating the costs of setting up the Xbox brand, but this is not quantifiable and largely speculative.

Apple’s only real mass market branding success is their iPod line, outside of that their impact is largely overstated. The brand “Apple” is not on the same level that “iPod” is.

In many ways the situation which arose to allow the growth of that brand was based on the quick-thinking of Jobs at a time when the CE majors where fumbling over themselves in reacting to a paradigm shift in (OECD) consumer perception music entertainment. It was a window that Jobs saw and capitalised on.

I believe no such openings exist in the console business, even with this attempted shift towards an all-in-one set top box. A possibility is the proposed Nintendo model, essentially non-games in the traditional sense. However the success of DS in Japan has not been replicated in the US or EU and Nintendo’s primary demographic is still pre-teen.

Even if Apple were to try and leverage a console on the back of iPod it is highly unlikely that the universal appeal of that brand could transfer itself to their nascent console. I would imagine that the demographics change completely and the strength of iPod in the console space would be greatly diminished relative to the general CE space.

Second barrier to entry is exclusive IPs. The current players have successful franchises already in place. Courting developers and getting them to seriously look at your console is not easy. The alternative is to go out and purchase the talent, however to receive a return on your investment you would have ensure complete success – whether gamers fond of certain IPs/developers will follow to your console is not guaranteed, a problem that Microsoft has faced.

The final serious barrier is capital. This is both money and already established manufacturing capability. Sony is able to leverage its synergies and specialisation in the actual manufacturing process to deliver more hardware at every price level, without subsidy, compared its competitors. Matsushita, Samsung and Intel are probably the only companies out there that could compete, without subsidy, in delivering the same value.

Microsoft competes because it is able to subsidise, Nintendo has totally backed away from this model. Apple is in the same position as Microsoft and Nintendo, they cannot utilise synergies and do not control the manufacturing process. The question for them will be whether the subsidy would be a justifiable cost.

I do suspect that Apple may well move into gaming in the mobile space, where it can leverage iPod to the fullest.
 
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NANOTEC said:
The console market is already too crowded. Most big companies can enter the console market, but it doesn't make any business sense. Designing hardware is the easy part since all you need to do is outsource the CPU/GPU etc. The hard part is selling enough software to make up the financial loss in hardware. Even MS lost $3 billion to get into the console business. I don't think any normal company wants to do that. Of course there is the NeoGeo route where you sell hardware at extremely high profitable prices, but then you still need software for people to buy the hardware to play them on.

Apple could enter the console market using PC innards to get a leg up on software support, but they need to partner with some game software companies. They also cannot sell the hardware at a loss.
They could enter through acquisition or merging with another company.

epic
 
epicstruggle said:
They could enter through acquisition or merging with another company.

epic

You mean a gaming software company? Sure but that still only gets them one game software company. Apple doesn't have much money to buy whoever they want that's why it would be better if they partner with a game software company.
 
NANOTEC said:
You mean a gaming software company? Sure but that still only gets them one game software company. Apple doesn't have much money to buy whoever they want that's why it would be better if they partner with a game software company.
Why not a hardware company?

epic
ps: Apple has almost 8 billion dollars in the bank!
 
epicstruggle said:
Why not a hardware company?

epic
ps: Apple has almost 8 billion dollars in the bank!

Because like I mentioned earlier hardware is not the issue.

ps: Apple has almost 8 billion dollars in the bank!

Yeah and Rare cost almost half a billion...
 
I wonder if this thread has a bit of life still in it. ;)

http://www.appleinsider.com/article.php?id=2282

Apple would get killed on a home game console. Wouldn't they? I mean what would they offer? They cant compete with Sony/MS established game portfolio. I dont see them having the stomach or budget to go to battle with a hi-tech machine (used to all those fat hardware profits on Ipod..)They would be more of a competitor to Nintendo. And how are they going to beat Nintendo at it's own game?

Of course, this most likely relates to a handheld. And more likely just an extension to add more game capabilities to the ipod, really.

But I guess, ms made Zune so now Apple want to repay the favor :LOL: All these companies want to be in all these content fields. I actually wondered the other day if ms needs to start a movie studio with it's excess cash (It's an edge for Sony in the media wars to "own" certain movies..). If the competitor owns certain media content, they can lock it out of your service (Apple, Sony, MS, etc etc)..



Given the challenges presented by the video game market, Tortora believes the company'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. He noted that Microsoft recently introduced a video download feature to its Xbox 360 gaming system and said he expects Sony will follow.

"There are no technical limitations to this capability, and Microsoft is already aggressively wooing the movie studios," he wrote. "This could adversely impact Apple?s iTunes Movie download business longer-term, along with its iTV and video iPod sales."

The analysts believes Apple will ultimately have to decide "whether to accept this challenge head-on" by entering the gaming market, or conclude that Microsoft and Sony pose little risk to its business and continue on with its current strategy.

In his note to clients, Tortora said Apple has recently hired game developers at both the software and hardware levels.

Wow, this is fascinating stuff. Looks like the 360 movie download service has rightfully ruffled some feathers..
________
Laguna Heights Condominium
 
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Mmm he did say

And i can only think of Matsushita (which he said it wasn't) and Samsung which fit into that description, these days...

I wanted this system too come out so bad (back in the day). :unsure:

Matsushita/Panasonic M2 or Wikipedia: M2

Dev Kit:
m2_3.jpg


Consumer Console:
Panasonic-M2.jpg


D2:
d2-1.gif


Specs:
Central Processing Unit - Twin PowerPC 602 CPUs at 66 MHz. The design initially called for a single 602.
32-bit RISC microarchitecture
PowerPC CPU designed for consumer electronics applications. The only scalar PowerPC
1.2 watts power usage each
32-bit general purpose registers and integer ALUs, 64-bit data bus at 33 MHz
4 KiB data and instruction caches (Level 1). No Level 2 cache
1 integer unit, 1 floating point unit, no branch processing unit, 1 load/store unit
SPECint92 rating of 40 each, approximately 70 MIPS each.
1 million transistors manufactured on a 0.50 micrometre CMOS process
Custom ASICs
BDA:
Memory control, system control, and video/graphic control
Triangle and setup engines, MPEG-1 decoder hardware, DSP for audio and various kinds of DMA control and port access
Random access of frame buffer and z-buffer possible at the same time
CDE:
Power bus connected to BDA and CPU
"bio-bus" used as a low-speed bus for peripheral hardware
Renderer capabilities:
1 million textured triangles/s geometry rate
100 million pixels/s fill rate
shading: flat shading and gouraud shading
texture mapping
decal, modulation blending, tiling (16K/128K texture buffer built-in)
hardware z-buffer (16-bit)
alpha channel (4-bit or 7-bit)
320x240 to 640x480 resolution at 24-bit color
Sound hardware - 16-bit DSP at 66 MHz (within BDA chip)
Media - Quad-speed CD-ROM drive (600 KiB/s)
RAM - Unified memory subsystem with 8 MiBs
64-bit bus resulting in peak 533 MiB/s bandwidth
Average access 400 MiB/s
Full Motion Video - MPEG-1
Writable Storage - Memory cards from 128 KiB to 32 MiB
Expansion Capabilities - 1 PCMCIA port (potentially used for Modems, Ethernet NICs, etc)
 
Apple would get killed on a home game console. Wouldn't they?

I think they are more likely to introduce gaming angle to iPod and iPhone (the rumored Apple cell phone).

For living room, they can explore a good-value/hi-quality iPod Stereo System or MacTV as a beach head. In the long term, they can decide whether they really need console gaming to extend their strategy further.
 
Anyone remember CNet sparking a rumour of Apple mergin with Nintendo? I forget whether is was this year or last. Either way Apple is doing just fine with its current strategy. They are a hardware company with hardware flying off the shelves, cash-on-hand of 10 billion...an uber strong brand name. There is no reason to get into the home console market, though handhelds are a different story. Apple's hot seller is only gaming software and a few buttons away from being a game system anyway (tilt the fucking thing and add four buttons). What game dev company wouldn't love to ride the ipod/ igame train:?:

damn patsu! What you said in your first sentence... you beat me.
 
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What if an "Amiga" like business model. A cheap computer like a little bit upgraded mac mini at 600-700$ price range (with a lot better GPU), and can run games like consoles when a game DVD is inserted at boot-time and lets control the entire hardware w/o booting into OS.

Still, I am not sure how they can convince PC developers w/o DirectX and console developers w/o a good installed base (that plays games frequently).
 
Maybe they just want some games made for the Macs. Wouldn't that make some sense too, taking some of the Windows customers that drop out in the Vista transition? A counter to Games For Windows? Timeline's a little tight though.
 
I don't see Apple entering in the console market any time in the near future. It takes a while to build brand recognition when it comes to home consoles and we have plenty of evidence that it's not cheap by any means. This is evidence from Microsoft coming in with the Xbox.

While Apple does have the money to spend, right now they are doing so well because their products are hugely profitable. Will Apple be able to retain their current level of profits if they enter the console market and spend even one billion dollars on it? The costs over the few period of years could negate the revenue received from other products.

I think Apple's best entry to market is through the Ipod and to slowly introduce gaming there, but it would of course have to be done right and not increase the cost of the Ipod.

I would like to know if Mac games sales have increased now that Apple is selling more Macs. And it would also be interesting to see if Apple continues to increase marketshare does the Windows side of game sales shrink or stay the same?
 
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