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AlfredoTurkey said:

Guys, Apple entered the gaming industry with the advent of the app store. lol. They're the owners of the number one gaming device on the planet RIGHT NOW.

So my question is... why would they release ANOTHER product to sit under our TVs that wouldn't even begin to compete with another product that is selling way, way better?

Maybe read the OP? "why would Apple do that" is a tired argument, when they're getting into all sorts of markets like watches, headphones and cars, the idea of them entering the console business shouldn't be shocking. Consoles and the products they sell aren't mutually exclusive. Apple TV can serve as a true console with some beefier specs. Why is Apple willing to spend billions on exclusive TV shows when they have all of the streaming services on their devices already, and just leaving consoles aside for a moment: is it me or is getting 100% of the revenue better than the 30% cut they get now?

I think you should stop looking at it from console war goggles, but realize Apple seriously is lacking a capable, competitive device under the TV.

Soundwave said:

Apple isn't interested in gaming, it's not big enough of a market for them. 15-20 million consoles/year is small potatoes for them, they ship that many iPhones in a slow quarter. They could easily compete in this sector though they would get tons of third party support and they can easily out market Sony/Nintendo/MS.

AppleTV ships 6-10 million/year and Apple seems content with that, AppleTV is not a major product for them, though it could be if they really wanted to push it. 

It's not needed though IMO, too much competition in gaming is actually a bad thing IMO, platforms need room to breathe in order to grow if you have like 5 different platforms it just creates oversaturation in the market and confusion among consumers. It's not ideal, game platforms are not just regular products they are a format in effect, having too many is not good for the business as what you basically end up with is weakened reach for all of them fighting over a small market. And for developers it's not good to have to make like 5 different versions of each game. 

This is another thing most gamers mistakenly repeat. Of course sales are gonna be lower than smartphones, because you sell consoles to a household, often with multiple people, it's not an individual product like smartphones, they realize that better than you. TV sales are lower than smartphones, there is less demand for them. Besides, it's not all about selling single hardware and thats it, Sony is making more money than they ever did during the PS2 era. PS4 hardware sales help, but a big contribution to that is PSN.