Last week, The Wall Street Journal reported that Google Inc (NASDAQ:GOOG) will enter the gaming console fray as early as this fall — but maybe not for the reasons you may think.
Google Inc (NASDAQ:GOOG) isn’t looking to take on Microsoft Corporation (NASDAQ:MSFT) or Sony Corporation (ADR) (NYSE:SNE)‘s dominance in the space. Both companies have sold about 70 million units each of their latest consoles, and they’re firmly planted within the gaming market with both their fan base and game makers. Google’s angle would be to create an inexpensive console for playing Android games, rather than an expensive box for top-tier gaming.
It’s not a revolutionary idea, but it’s a good one. The daily revenue from the top 200 grossing apps in the Google Inc (NASDAQ:GOOG) Play store is $1.1 million. Obviously not all of those are games, but the majority of them are.
But it’s likely that Google Inc (NASDAQ:GOOG)’s entering the gaming space because it’s afraid Apple Inc. (NASDAQ:AAPL) is moving in that direction, too. Apple released some specs on a gamepad controller just last month, proving Apple TV is one step closer to becoming a gaming console. The new game controller standard would bring all of Apple’s game developers onto the same page and create a unified gaming experience for its customers.
Back in February, MacRumors mentioned that one of the first engineers to work on the original Xbox posted this on his blog:
Why can’t I write a game for Xbox tomorrow using $100 worth of tools and my existing Windows laptop and test it on my home xBox or at my friends’ houses? Why can’t I then distribute it digitally in a decent online store, give up a 30% cut and strike it rich if it’s a great game, like I can for Android, for iPhone, or for iPad?
When you put it that way, it seems like a no-brainer for Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) to release console-like gaming.
The rumored Google device will be designed and marketed by Google, which would give the company Apple-like control over the device. Google Inc (NASDAQ:GOOG) has opted to hand over Android to OEM vendors in the past, but a 100% Google console would likely receive far more attention than releasing the device through another company.
A Google Inc (NASDAQ:GOOG) console could bring in obvious revenue from app sales, but it would also bring Android one step further into the home market. So far, Android has been incorporated into a few home devices, but a Google console is the most logical progression, since games are already a popular part of the OS. Going forward, investors and consumers need to keep an eye out for how both Apple Inc. (NASDAQ:AAPL) and Google approach in-home gaming, as it’s a new area for both of them — and one with lots of future potential.
The article 1 Reason Google Wants in on the Gaming Space originally appeared on Fool.com.
Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
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