Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Microsoft/Windows
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Why Google Shouldn't Get Into Video Game Consoles

Why Google Shouldn't Get Into Video Game Consoles
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"Even the phones and tablets Google makes are loss leaders," said game analyst Billy Pidgeon of rumors that Google is looking to get into making video game consoles based on Android. "There are manufacturers like Ouya and there will be other consoles and multimedia boxes. Hardware is a very risky play."
 


It seems there's no tech-oriented market stone Google is willing to leave unturned. The latest rumors around the technology giant suggest the company is venturing into the video game console industry.

According to The Wall Street Journal, Google is developing a video game console and a watch based on its Android operating system. The Journal cites "people familiar with the matter" in a story by Amir Efrait. Google could not immediately be reached for comment and declined to comment to the Journal.

With the runaway success of the Android operating system, it's no surprise that Google would work to leverage it on new devices. IDC reports Android was installed on 75 percent of smartphones and 57 percent of tablets shipped in the first quarter, clear market domination.

A Shrinking Market

The smart watch category is the subject of many rumors as the world waits for Apple to debut an iWatch, but the video game console market may be tougher to penetrate. That's because the video game console market is no longer growing at yesteryear's rapid clip.

According to NPD Group, U.S. retail sales of video game hardware, software and accessories dipped 25 percent to $495.2 million in the first quarter, thanks in part to consumers playing more games on mobile devices and holding back spending until the next generation of consoles hits the market.

Relevant to Google's rumored move into the hardware side of the video game equation, NPD reports hardware sales suffered more losses than the rest of the industry. Specifically, this sector took a 42 percent hit year over year. Software sales fell 17 percent.

Console Not Likely

To gain insight into how likely Google is to pursue a video game console, we caught up with Billy Pidgeon, an independent video game analyst. He told us he doesn't expect to see Google go down the video game console path because the company has historically shied away from a heavy emphasis on hardware.

"Even the phones and tablets Google makes are loss leaders. There are manufacturers like Ouya and there will be other consoles and multimedia boxes," Pidgeon said. "Hardware is a very risky play."

As he sees it, Google should get its Play and Games strategies further out on the Web before pursuing hardware, because software and services are the important factor, not consoles. Google could do that by ensuring its content is delivered to TVs and Internet-connected devices.

"The first priority should be to make sure as many devices as possible support Chrome and Android," he said. "Google is better for not having pursued a hardware-centric strategy. Hardware is generally becoming less relevant as we go forward."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Microsoft/Windows
1.   Price Wars Hitting Laptop Market?
2.   Office 365 Tailored for Attorneys
3.   Plan Your Move from Windows 7 Now
4.   Microsoft Patch Tuesday Stars IE
5.   Surface Pro Ads Aim at MacBook Pro


advertisement
China Puts Microsoft Under the Lens
Official anti-monopoly probe launched.
Average Rating:
Plan Your Move from Windows 7 Now
But don't rush to deploy Windows 8.
Average Rating:
Dynamics CRM Online Extends Reach
Now available in 17 more countries.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 

Enterprise Hardware Spotlight
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 

Mobile Technology Spotlight
Apple Stock Soars Ahead of iPhone 6 Launch
The imminent release of the iPhone 6 -- and maybe even an iWatch -- has sent Apple's stock soaring to new heights. Considering what else the firm could have up its sleeve -- the stratosphere may be the limit.
 
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.