• Apple Expected to Enter the Traditional Console-Style Gaming Market with the Apple TV

    Although the new Apple TV isn’t set to have a streaming subscription service available at launch, that doesn’t seem to be a problem for investment firm JP Morgan, who is predicting that the device’s main selling point will be an App Store with traditional console-style videogames. Analyst Rod Hall mentioned that the “real potential” for a new Apple TV lies with a massive $34 billion console gaming market. He estimated that an anticipated set-top box with a dedicated App Store would give Apple a foothold in that market and contribute a meaningful amount to its bottom line.

    The analysts’ conservative estimates suggest that every 5% of the gaming market that Apple can capture will add about 2% to the company’s annual earnings per share. When compared to a streaming TV service, which he believes will not be greatly profitable due to terms with content owners. His estimates suggest that a subscription plan around roughly $40/month would add just 1.4% to Apple’s calendar year 2016 earnings per share.

    Hall noted that the real key for Apple’s possible entrance into the console gaming market is the A8 chip, which features PowerVR graphics that are estimated to be roughly on par with that of the PlayStation 3. The power could potentially be even higher if the Cupertino California company chose to go with an “A9” processor instead. The analyst also mentioned that Bluetooth input should allow a new Apple TV to connect with several gaming controllers that are already available for the iOS platform. Titles will be available for download on the App Store and users would be able to play comfortably from their couch.

    JP Morgan ended up maintaining its “overweight” rating for the APPL shares with a price target of $145 after the recent note.

    Source: JP Morgan via AppleInsider
    This article was originally published in forum thread: Apple Expected to Enter the Traditional Console-Style Gaming Market with the Apple TV started by Akshay Masand View original post
    Comments 1 Comment
    1. rodnutz's Avatar
      rodnutz -
      I don't own an Apple TV but I hope this happens. I'd buy one or two immediately! Although I've completed them I'd love to play on a big screen with a controller. Both are great mobile games that I think would do very nice giving the player a console style experience! There are so many great iOS games that would translate well to a big screen.
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