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Apple Inc set to make gaming push with updated AppleTV

A new version of the Apple TV is expected to be unveiled at WWDC

As usual, consumers and investors alike is going to be monitoring Apple Inc.’s Worldwide Developers Conference closely for new products and services.

They shouldn’t expect the tech giant to roll out an Apple-branded television, but we’ll likely visit a new version of the AppleTV device which has more memory, improved graphics and touch/speech capabilities.

These improvements, along with the AppleTV app store, should allow Apple better access to the US$35-billion for?video gaming software. That may add one per cent to its earnings per share in 2016, based on conservative estimates by J.P. Morgan analyst Rod Hall.

He expects the brand new AppleTV will feature the same A8X processor featured in the iPad Air 2, which is considered a really capable chip with regards to gaming.

“Since AppleTV will likely be priced significantly less than next generation consoles, we feel it will present an interesting option for casual gamers, particularly given the additional TV streaming features we expect the device to offer,” Hall said in a note to clients.

The rationale for this type of push by Apple is apparent, since gamers spend an estimated average of US$150 per year on vide game software purchases. Meanwhile, both total gaming software market and also the amount of annual revenue per console have continued to trend higher, with Hall estimating that spending is up about eight percent since 2012.

The analyst anticipates most AppleTV shipments will be in North America and Europe since better submissions are available in those regions relative to the rest of the world.

Hall doesn’t expect Apple to launch a streaming TV service at WWDC, but he is doing anticipate it\’ll arrive before the end of 2015.

The analyst forecasts AppleTV’s penetration will rise to five per cent in 2016, up from a couple of.4 percent at the end of 2014, assuming a TV replacement cycle of seven years.