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E3 Volume 2 Blog: Apple & Gaming

June 03, 2009 – Comments (1) | RELATED TICKERS: AAPL , NTDOY.PK , MSFT

http://www.cnbc.com/id/31084654

So I found the above linked article on CNBC.com.

Here's a few reasons Apple won't gain a large foothold in the video game sector anytime too soon (and granted I love Apple, but I just don't see it happening, kind of like their iTV).

I. Most PC gamers are hardcore. They have a $400 graphics card, and probably spend another $400+ on the rest of their system. For your money, you get nice style, design, and function with a Mac, but not raw gaming power. Apple as of yet, has no home gaming console system, and I'd be seriously, seriously, suprised if they announced one in the next two years.

II. The iPod Touch is ok for casual games. Most games require more articulate controls and don't work well on the iPod Touch (or iPhone). Here's a rundown of control schemes for games:

     A. Touch screen - As on the iPod Touch, these work great for casual games, like solitaire, but not so great for other types of games. Touch screens just don't have enough tactile feedback for serious gaming. 

      B. Analog stick - The analog stick is the primary input for most action-adventure or RPG type games and is found on all three major console systems (Xbox 360, Nintendo Wii, Playstation 3). It was pioneered on the Nintendo 64 system and adopted by all the other major consoles after that. It measures both direction and the degree to which you choose that direction, allowing very precise movements within games. If you look at the Wii "Nunchuk" controller, it's the primary stick on it (and the reason Nintendo didn't just stick with the single Wii remote, they knew this would be a necessary accessory for success).

     C. Motion Control - Again for more casual games and non-gamers. Motion control is found on the Wii remote and was popularized with such games as Wii Sports. Microsoft is readying their own verison called Project Natal (a bit overhyped I think, but we'll see). It can be gimmicky, but it's very easy to pick up and play.

     D. PC Mouse - Used most commonly for First Person Shooters. Most hardcore "FPS" fans won't go near a console because the mouse tends to have a faster reaction time when aiming vs. the analog stick.

III. Apple has no game franchises. Like Mario, Zelda, Halo, etc, game companies build themselves on franchises, where gamers can expect a certain quality and type of game.

IV. The Apple App store has tons of apps and tons of games. Most of the apps on the app store are quantity over quality. Also developers are a bit wary of the iPod Touch and iPhone because it's very difficult to make a profit unless you are already a large studio with known game franchises.

Basically for Apple to do well in the game business, they'll need to do a few things.

First, throw buckets of money towards their gaming projects. Microsoft lost frighteningly large sums of money getting the Xbox system out the door (Ironically, J Allard, who is over the Xbox division was on The Apprentice back when they were still losing money)

*Also, most companies lose money selling their video game consoles and make money on games (the razor & blades scenario). Apple makes money on the iPod Touch and iPhone, but the competition will put out more powerful systems and lose money in order to compete. The outlier here is Nintendo, who to my knowledge has almost always had a less powerful system than their competitors, but made a profit on the system and is some cases outsold their competitors.

Second, innovate. Sony was one of the first to make a popular disc based gaming console, Nintendo popularized analog sticks and motion controls, and Microsoft seems to have hit the sweet spot perfecting online gaming with Xbox Live. There are many other innovations here. I think Apple has perfected the multi-touch interface, but it's not really suited to gaming in my opinion.

 Third, design a good controller for all types of games. I think the Xbox 360 probably has one of the best controllers in the current crop of consoles. For worst controller, I think I might have to nominate the PSP with its mini analog stick. 

Finally, don't be afraid of to delay games or take your time. In the words of Shigeru Miyamoto: "A delayed game is eventually good, but a bad game is bad forever."