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. 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.
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.
Apple has dabbled in the console market before. The Pippin (see below), 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.
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.
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