Valve: The Biggest Threat To Consoles Is Apple

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Polygon has good coverage of that lecture Gabe Newell gave at the University of Texas School of Public Affairs. According to Newell, the biggest threat to consoles right now is Apple. Here's a quote:

The biggest danger facing the success of Steam Box or any other PC ecosystem hoping to find space in the living room is Apple, according to a lecture given by Valve co-founder Gabe Newell to a class at the University of Texas' LBJ School of Public Affairs.
 
Agreed, could you imagine some cheap Apple TV becoming the next major console. *shudder*
 
I like Gabe, but he's dead wrong on this. Apple tried to release a console back in the non-Jobs 90s, and it was a complete flop. Now they're really only known for their trendy brand, not for any real software development outside of their OS, which has never been known for being game-friendly. Even if they did release a console, it would make Sony's offerings look affordable.
 
I like Gabe, but he's dead wrong on this. Apple tried to release a console back in the non-Jobs 90s, and it was a complete flop. Now they're really only known for their trendy brand, not for any real software development outside of their OS, which has never been known for being game-friendly. Even if they did release a console, it would make Sony's offerings look affordable.

http://www.dailytech.com/article.aspx?newsid=29798
 
I don't agree, yet.

I cannot see how the statement is relevant to any argument, anyway. For example, I would say that it looks like the competition to the “Steam Box” is the Xbox, normal PC, some of these smaller PCs which can run Linux, and perhaps a few others factors such a cost.

It could be an attempt, on Gabey-baby’s part, to play the “common enemy routine”, to the audience, just for the moment. Apple makes a good common enemy. That is one thing that Apple is good at making.
 
All they have to do is slap an Apple logo on a Fisher Price Activity Center and BAM $1899 game console!
 
Well, if he would release the Steambox already I think they could nip that threat in the bud ... Valve is starting to remind me a little of the old Edison quote, "Opportunity is missed by most people because it is dressed in coveralls and looks like work" ;)

I have the Roku 2 that comes with Angry birds ... gaming on that type set type box is more of a novelty than a threat right now ... but with a good 9 months or so before next gen consoles and with the Spring Steam sale a couple of months away this is an optimal time for a release of the Steambox :cool:
 
I don't think he was talking specifically about a console, but more so the iPad. But even still, I don't think Apple will maintain a big "living room presence".
 
I think Gabe is dead on with his assessment of Apple in the living room.

Since the current Apple TV runs iOS, it wouldn't take much for Apple to push into console gaming territory with it.

Considering Apple is getting ready to release an updated Apple TV which has the newer A5X processor and Bluetooth, there is nothing stopping this from being a fine little console. Add a bluetooth controller and you are in business (or use the touch screen from an iphone or ipad)

There are plenty of amazing, high quality 3D games from some of the big developers out there that would be great on a big screen tv. Sure, it might not match the graphics ability of whatever Sony and MS release next, but does it really need to? Considering how inexpensive many of these titles are, it would be a slam dunk for developers and consumers alike.


Apple has maintained for years that the Apple TV has just been a hobby or side project. Imagine if they turned their full interest into growing this platform much like they did the iPhone and iPad?

I dunno about you guys, but I am about tired of loud, unreliable game consoles in my living room. And with each generation of the Sony and MS consoles it seems to be getting worse.

I welcome Apple to take a run at something more than just media playback if they decide to give it a go. I have an open mind. You guys really should too.
 
Now all they need to do is make some multiplayer games for the PC. I use my HTPC for gaming but it kind of sucks when there's only a handful of games you can play split screen with.

Until PC gaming moves into local multiplayer territory no Apple or PC based system can really take the place of consoles.
 
It depends on what gamers he's going for.

Apple could corner the market in casual games. I think the Wii/WiiU is threatened by Apple. Microsoft/Sony/Steam Box are not. They seem like they are aimed more for the non-casual gamer.

I doubt Apple could pull off a good CoD, Madden, AC3 style game that was worth a shit. I see Angry Birds, Cut the Rope, Where's my Water, Draw Something on the Apple hardware (which is great if you are into those games).

Apple's Pippen was a console, but it wasn't great (even when partnered with Bandai). Times have changed, and so has Apple. I think if Apple were to release a console or gaming solution, it would be a small success. Great for small games, but not the only console in the home. If they put massive resources behind a full gaming system (Xbox/PS3 style), I think it would create some waves and probably be a good system. But, I just don't see them going that route.
 
I like Gabe, but he's dead wrong on this. Apple tried to release a console back in the non-Jobs 90s, and it was a complete flop. Now they're really only known for their trendy brand, not for any real software development outside of their OS, which has never been known for being game-friendly. Even if they did release a console, it would make Sony's offerings look affordable.

Apple was also just about bankrupt back in the 90s and there wasn't a smart phone market like there is today.

I included a link http://lmgtfy.com/?q=apple+bankruptcy

And that other guy already served you on the 3.5 times earnings for games.
 

Android isn't known as a game-friendly architecture either. Apart from that, the mobile market is still in its infancy, particularly with regards to quality control. Like I've said before, it's very similar to the state of the video game industry in the early 1980s, when there were multiple platforms, anyone could release a game, and there were zillions of them. There was little way for the consumer to know whether or not they sucked, they were overpriced, and eventually people tired of the novelty. People mostly chose to buy games based on whether or not they had the platform for it. It took NES to bring back the spark.

In the same way, there are zillions of games and apps on both the Apple and Android markets, people buy based on what kind of platform they have, and the resultant incompatibilities and bugs are making many of them unusable. There's reviews, but most gaming-related media still treats the mobile market as a niche interest, so they're not very numerous or in-depth.

Honestly, I think Valve is far better positioned to put the screws on the Big Three than Apple is. They have the chops to produce and distribute titles that will make people want to buy their console.
 
The biggest competition for everything is going to be Android. We have Ouya and Nvidia's Shield coming out soon. While developers wanna dry fuck Apple, cause they do actually make serious money on those iOS devices, the majority of users will find their way onto Android. Which could put Android is a position like Windows is today.

The question is, will Linux take over the desktop market, while Android takes over the small and ultra portable market?
 
It depends on what gamers he's going for.

Apple could corner the market in casual games. I think the Wii/WiiU is threatened by Apple. Microsoft/Sony/Steam Box are not. They seem like they are aimed more for the non-casual gamer.

I doubt Apple could pull off a good CoD, Madden, AC3 style game that was worth a shit. I see Angry Birds, Cut the Rope, Where's my Water, Draw Something on the Apple hardware (which is great if you are into those games).

Apple's Pippen was a console, but it wasn't great (even when partnered with Bandai). Times have changed, and so has Apple. I think if Apple were to release a console or gaming solution, it would be a small success. Great for small games, but not the only console in the home. If they put massive resources behind a full gaming system (Xbox/PS3 style), I think it would create some waves and probably be a good system. But, I just don't see them going that route.

The PSP already pulls off those games albeit a shitty COD, but still none the less they have the software on those platforms.

Apple really doesn't give a shit about the hard core gamer. The hard core gamer sits around on day bitching about the ME3 ending or reading reviews and saying "that isn't worth my 60 dollars and telling everyone not to buy this and this".

The casual person says "I worked all fucking day and 10 dollars isn't a lot of money and oh look Walking Dead on my iphone, I love the show I bet this is cool".
 
The biggest competition for everything is going to be Android. We have Ouya and Nvidia's Shield coming out soon. While developers wanna dry fuck Apple, cause they do actually make serious money on those iOS devices, the majority of users will find their way onto Android. Which could put Android is a position like Windows is today.

The question is, will Linux take over the desktop market, while Android takes over the small and ultra portable market?

Android's already taken the market. The question is what they're going to do with it. Haven't heard much about the Chrome OS in a while.
 
Android isn't known as a game-friendly architecture either. Apart from that, the mobile market is still in its infancy, particularly with regards to quality control. Like I've said before, it's very similar to the state of the video game industry in the early 1980s, when there were multiple platforms, anyone could release a game, and there were zillions of them. There was little way for the consumer to know whether or not they sucked, they were overpriced, and eventually people tired of the novelty. People mostly chose to buy games based on whether or not they had the platform for it. It took NES to bring back the spark.

In the same way, there are zillions of games and apps on both the Apple and Android markets, people buy based on what kind of platform they have, and the resultant incompatibilities and bugs are making many of them unusable. There's reviews, but most gaming-related media still treats the mobile market as a niche interest, so they're not very numerous or in-depth.

Honestly, I think Valve is far better positioned to put the screws on the Big Three than Apple is. They have the chops to produce and distribute titles that will make people want to buy their console.

iOS is a standard platform. I can buy walking dead on an iPhone and have almost the same experience on my iPad and even maybe my Apple TV in the future.

This isn't the case with Android. I have to know what hardware I have, be on a certain Android IOS which changes more often than what iOS does and all of this and I still don't know if the Android program will run the same on my tablet.

Its a fucking mess.

And Valve isn't. Apple not only has more cash on hand they have market penetration with their iOS. Contrary to what you believe franchises like Angry Birds would sell on the open market for far more money than the Half Life and Portal series.
 
Android's already taken the market. The question is what they're going to do with it. Haven't heard much about the Chrome OS in a while.

That chart really means shit in this discussion. How many of those android devices are on some cheap piece of shit on a prepaid plan.

Just because there is more android phones out there doesn't mean they are all buying games.

How about you address the post about games having 3.5 times the revenue on iOS.

Foot meet mouth.
 
Android's already taken the market. The question is what they're going to do with it. Haven't heard much about the Chrome OS in a while.

Apple has the cash, webtraffic, and tablet marketshare; Android has the device marketshare. If EA has taught me anything, it's that game publishers/dev's LOVE cash. :D
 
Apple has the cash, webtraffic, and tablet marketshare; Android has the device marketshare. If EA has taught me anything, it's that game publishers/dev's LOVE cash. :D

That cash is only going to last as long as they can maintain the novelty that sells their devices. If the IPad Mini is any indication of their future offerings, that cash won't last long.
 
That cash is only going to last as long as they can maintain the novelty that sells their devices. If the IPad Mini is any indication of their future offerings, that cash won't last long.

Close to 100 billion cash on hand won't last long? You aren't serious.
 
I don't have a problem. I asked you to address the thing about the 3.5 revenue. That is the most important point. Not sure why you are upset?

I did. You even responded to it. So I don't know why you're telling me to address it again.

In addition, you weren't the one that pointed it out to me, so I have even less clue why you're ordering me to address a post that wasn't yours. Kinda creepy.
 
So far this SteamBox is looking like a gimmick to me. Slightly Xbox and Piston-chamber shaped/sized. Not much room for anything inside. If all those connectors at the back were used, it would look like a pile of spaghetti with a little box hanging off.
 
That cash is only going to last as long as they can maintain the novelty that sells their devices.

This is such an odd statement. They have more cash than others and somehow they are going to be there for a shorter time? Wouldn't the people with less money last a shorter time?
 
How about you address the post about games having 3.5 times the revenue on iOS.

I'll answer this one.

Could it be that they're only including revenue due to the application purchases themselves? You're forgetting that there are a huge amount of games on Android that are free that are paid applications on iOS. Many of these developers make money off of advertisements on the Android version which, and this is important, are downloaded far more times on Android than on iOS in many cases.

There is also a huge issue that many people tend to forget, and that is that few mobile games make a profit (that chart isn't limited to games). And more importantly, with game prices on Android and iOS being what they are, many game developers are dropping the more complex games and focusing on simple casual junk that takes a lot less money to make and has a higher liklihood of making money for the developers.

Developers are finding that with a majority of the titles, the quality doesn't matter nearly as much as the exposure you have. Square Enix has been learning this quite well by doing cheap ports of their Final Fantasy games and Chrono Trigger for iOS and Android and charging $14.99 for them, knowing they'll sell just because of name recognition.

Problems like these exist on PC and on consoles, but not nearly to the same degree.
 

In his defense, you only half-assed addressed it.

iOS is clearly a pretty good gaming platform given that it's selling games at an atmospheric rate, and that's just for their mobile devices. Obviously it's doing significantly better than Android despite Android having the lion's share of the market. So Apple's iOS is a pretty good gaming platform on the mobile side. Unrivaled, really. No other OS/platform in the mobile segment comes even close.

Gabe is also correct in that Apple, if they wanted to, can push a console and have a very dedicated following with the developers, who - historically - will do anything they can to make more money. Coincidentally, that's a sentiment shared by Apple :p

Gabe is only tying two strings, that are running parallel and already in close proximity, together and coming to a very logical conclusion.
 
I did. You even responded to it. So I don't know why you're telling me to address it again.

In addition, you weren't the one that pointed it out to me, so I have even less clue why you're ordering me to address a post that wasn't yours. Kinda creepy.

I agree, stop blaming each other. Apples stuff is more expensive anyway, plus I thought that this was more to do with consoles, not mobile pads and Android.
 
This is such an odd statement. They have more cash than others and somehow they are going to be there for a shorter time? Wouldn't the people with less money last a shorter time?

Uh, they don't really have more cash than others. According to their 2012 balance sheet, Apple has about 10 million in cash, which beats Microsoft's 7 million, but not Google's 15 million. If you're going to talk about more relevant numbers like their profits or P/E ratio, then that might make a better argument.

However, as with any of their numbers, they will be dependent on what is coming next. You think companies just sit on their money? If Apple doesn't have anything to keep the hipsters and masses amazed, their brand will lose its market share. It has happened before to them.
 
That cash is only going to last as long as they can maintain the novelty that sells their devices. If the IPad Mini is any indication of their future offerings, that cash won't last long.

Ah ok, I wasn't aware that no more games were going to be made for all the devices that were already owned. Thanks for clearing that up!

Also the iPad Mini is selling fantastically, I'm not sure what you mean? Imagine when they actually bring up to par spec-wise with everything else. Oh and top this off, I'm not even talking about tablets, but devices like that Apple TV. Let me ask you something, how many non-tech people do you think have even heard of a Ouya, let alone are willing to throw down the exact same amount of cash for it?
 
I agree, stop blaming each other. Apples stuff is more expensive anyway, plus I thought that this was more to do with consoles, not mobile pads and Android.

The conventional wisdom is that somehow the console market is going to be taken over by the mobile companies because the mobile game market is on the rise. I think that requires a hell of a lot of assumptions about mobile devices, personally.
 
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