Can Amazon and Apple Gain a Foothold in Gaming?

Developers who might have been recruited to help Amazon.com and Apple add games to their cheap set-top boxes may already be committed to Ouya, Senior Tech Specialist Tim Beyers says in the following video.

Ouya's tiny $99 Android-powered console, designed to hook up to any TV, started shipping a year ago. More than 840 games are available to players today, up from 170 at launch and 575 at the beginning of 2014. Some 36,000 developers have signed up to write code for the console, with another 1,000 joining every month, TechCrunch reported.

Tim says that's bad news for Amazon and Apple, which are in the process of adding games to their own set-top boxes even as Microsoft and Sony rush to add original programming to the Xbox One and PS4. Both companies need developer support to establish desirable game libraries as the lines that separate a console from a set-top box blur and the market converges.


How quickly the shift takes place is anyone's guess, though the introduction of 'microconsoles' such as the Ouya and Fire TV appear to be playing a role. How so? They don't take discs, relying instead on streaming or digital download. IDC expects rising digital revenue to mostly offset a 45% drop in sales  of console game discs over the next several years.

Naturally, Amazon and Apple want to capture the bulk of those sales but they'll have to compete with Ouya to gain share. And to do that, they'll need developers writing new and exclusive games to drive sales. Can investors bank on that possibility? Not yet, Tim says. Ouya has too much momentum plus an open system that includes all the tools necessary to create and test code. 

For now, Tim says the best thing shareholders can do is be on the lookout for announcements from major game publishers. If they start agreeing to either port major titles or develop new ones for Apple TV and Fire TV, it could signal a catalyst in the making.

Now it's your turn to weigh in. Have you tried the Ouya console? Would you consider Apple TV or Fire TV instead? Please watch the video to get the full story and then leave a comment to let us know your take on the key players in the market for video game consoles.

The mobile revolution's next great device is your next chance at a multibagger
Ouya isn't the only one breaking new ground. Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

The article Can Amazon and Apple Gain a Foothold in Gaming? originally appeared on Fool.com.

Tim Beyers is a member of the  Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends and owns shares of Amazon.com and Apple. It owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing in Startups

The lucrative and risky world of startups.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum