When Dictionary.com defines the living room as a room of leisure, its clear the online dictionary isn’t referring to the consumer electronics industry. Otherwise, the words “bloody battle to the death” would likely be included. With Circuit City going out of business, Toshiba retreating from a bruising loss to Blu-ray, and the Big Three of gaming throwing billion-dollar elbows, the room where consumers go for leisure is where upstarts and giants of technology go to die.
Even Apple knows this. After a decade in which nearly every move by the maker of the iPhone was golden, the company’s effort at a next-generation set-top in Apple TV stands as one of its few disappointments. The company set expectations going in, pitching the device as more “hobby” than “hit” from the get-go. But, two years after this “hobby” hit the market, it’s worth examining what Apple will do next in the living room.
Apple Television?
Some have speculated that Apple itself may be looking to make an actual television. The thinking goes, if it wants into the living room, why not control the main attraction?
Fat chance. While we’re clearly in the high-volume stage in HDTVs, the market has taken off precisely because consumers can get them so cheaply. A market where competition is fierce and prices are crashing hardly seems to be Apple’s ideal.
Blu-Ray?
Another option for Apple is to release its own Blu-ray player or at least incorporate one into the Apple TV. An Apple Blu-ray player could offer the best of both optical disk playback and online video. This doesn’t seem likely either. While Apple joined the Blu-ray industry group early on, they have yet to put a Blu-ray drive into a Mac, and with standalone Blu-ray players dropping below $200, its unlikely, even combined with Apple TV.
Apple TV: Game Box, Movie Box and More!
While the company may call Apple TV a hobby, it could ultimately be a paying gig for the company from Cupertino. With sales of Apple TV going up as of late, and the first model in its third year of life, Apple’s best living room bet may be a second generation Apple TV.
Why now? Since the launch of Apple TV, the company has launched its app store, pushed into gaming and started offering HD video content on iTunes. Add it all together on a refreshed box, and it could be a potent combination.
What would a new Apple TV have?
* First off, a heavy gaming and app focus. While Apple’s investment in App store and gaming has largely been on the iPhone, there’s no reason all that knowledge and the developer ecosystem can’t be transferred to the living room.
* Second, 1080p support. Today’s Apple TV supports HD, but neither it nor iTunes supports the highest resolution in 1080p. Its only a matter of time before iTunes goes 1080p, and such a move it could very well be in tandem with a new Apple TV.
* Lastly, tight integration with other Apple products – existing and possibly forthcoming – could be Apple’s knockout punch. Today, Apple TV integrates well with the iPhone and the remote app, but imagine a web pad as well as gaming peripherals connected to a new Apple TV.
Apple-predicting is a fool’s game, but given that the company clearly will look to further its living room strategy, its worth playing. What I predict is this: a new Apple TV at some point in 2010 that will be part gaming console, part online video and application powerhouse, all in wonderful 1080p.
