Apple Finally Getting Its Game On?

Gamespot reports on the possibility that, in some way, Apple is making moves to develop games. From the article: "This week, GameSpot learned that there may be more to the Apple-game rumors than mere Mac-mad daydreams. A tech-sector recruiter contacted the GS NewsDesk with an interesting story of a prospective hire that got away. Recently, when said recruiter made an offer to a software engineer, the engineer turned the offer down--saying he was being 'heavily recruited by Apple.' According to the engineer, an Apple hiring manager named Mike Lampell is heading up a group inside Apple's storied iTunes division. The group is specifically hiring for 'C/C++ coders with a gaming background.'"

Re:New version of minesweeper?

[Stormwatch]

Though if your (sic) a die hard gamer and a die hard Mac fan you need a windows box for games.

Or a game console.

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[account_deleted]

Comment removed based on user account deletion

Give away some blades; sell razors & blades!

[martyb]

You've heard the adage: "Give away the razor and make money on the blades." Right? Like game consoles - subsidize the console and make money on the games. Apple is doing something brilliant here: They could give away the games (okay, sell them for $CHEAP and make money on the player (iPod). From TFA:

According to the engineer, an Apple hiring manager named Mike Lampell is heading up a group inside Apple's storied iTunes division. The group is specifically hiring for 'C/C++ coders with a gaming background.' (Emphasis added.)

From: Strategy Letter V [joelonsoftware.com]. (Commoditize your complement)

Every product in the marketplace has substitutes and complements. A substitute is another product you might buy if the first product is too expensive. Chicken is a substitute for beef. If you're a chicken farmer and the price of beef goes up, the people will want more chicken, and you will sell more.

A complement is a product that you usually buy together with another product. Gas and cars are complements. Computer hardware is a classic complement of computer operating systems. And babysitters are a complement of dinner at fine restaurants. In a small town, when the local five star restaurant has a two-for-one Valentine's day special, the local babysitters double their rates. (Actually, the nine-year-olds get roped into early service.)

All else being equal, demand for a product increases when the prices of its complements decrease. (Emphasis added.)

There is a precedent for what Apple may be doing here. Anyone remember the Atari 800? [wikipedia.org] I bought one just so I could play Star Raiders [wikipedia.org]. I bought it at a store outside Boston (IIRC at a Bit Bucket in Newton, MA) which had this set up on a 5-foot projection TV for video and a 100 Watt stereo driving the audio. The salesperson told me: THAT ONE GAME was responsible for something like half of their sales of the Atari 800. At the time (1980 or so), the Atari 800 cost me about $800... and I happily paid it so that I could play a ~$50 game. AND, once I got the computer, I bought many more applications and peripherals. Star Raiders was the "killer app" of its day.

Apple might be looking to do the same. Sell some subsidized games on iTunes for little money so as to encourage additional iPod sales. Once he consumer has the iPod, and has overcome paying its (non-negotiable) price, the barrier to buying more things for it is overcome. Increased iTunes sales. Even MORE profit for Apple. A larger market. Synergistic growth.

Someone else here mentioned about Disney. Kid sees friend playing Disney game on iPod. Kid Wants Game. Kid pesters parents incessantly. Parents buy an iPod for junior to play these nice kid-friendly Disney games. Kids become experienced users of an increasingly dominant platform. [Apocryphally, IBM gave (?) Selectric typewriters to schools to use in Touch Typing Classes. Said students go off into the business world and are faced with klunky manual typewriters. Secretaries all-so-often are the ones who Get. Things. Done. Not too hard to start persuading the PHBs to buy a Selectric typewriter. Lather, rinse, repeat.] Apple has done similarly with schools by offering a significant educational discount for their computers. Microsoft has a student discount for their Office suite. Hook 'em while they're young.

Here, Apple could hook 'em before they even GET to school! Like I said, Brilliant. Absolutely Brilliant!

Rumor management

[Gorimek]

If it's an intentional leak, it is to spread confusion. This rumor won't increase any sales.

Think of it this way: It's impossible to keep rumors of new and important products from happening. Too many people are involved. But if you can drench out the true rumors with tons of false ones, it's gonna be very hard for the public to sort out which ones to believe in. And your product announcements will still be newsworthy and surprising.

Somtimes I think 90% of the crackpot "Art Bell" theories slushing around on the net and other places are planted by the US government in order to cover up the 10% that are actually true.