Apple Needs to Fix This Big Problem Before Offering Video Games

A recent report from iLounge says that Apple (NASDAQ: AAPL  ) may begin offering video games in its next-generation Apple TV. Good news, right? Sure, but the Mac maker is probably going to have to upgrade iCloud first, Fool contributor Tim Beyers says in the following video.

Consider the alternative. A gaming-centric Apple TV that didn't offer streamed titles would need a fat hard drive for downloading games and storing progress locally. A workable solution, Tim says, but it could make the device materially more expensive and draw comparisons to (and competition from) the major consoles.

Streaming games could eliminate those costs but at the expense of beefing up iCloud for broadband data delivery in real time, which, in turn, would force heavy investments in data center technology. yet there's reason to believe Apple is already making precisely this sort of commitment. Capital expenditures have come in around $8 billion in each of the past two fiscal years. For comparison's sake, Google (NASDAQ: GOOGL  ) doubled its investment in capex last year yet managed to spend only $7.4 billion.

Tim says beefier data centers should deliver for Apple investors. Why? Streamed games and video aren't the only needs. There's also a rich revenue opportunity to be had in transforming Time Machine into an online backup service similar to that offered by Carbonite and its competitors.

Now it's your turn to weigh in. Do you want an Apple TV that streams games? What about beefier iCloud backup service? Please watch the video to get Tim's full take and then leave a comment to let us know what you think, and whether you would buy, sell, or short Apple stock at current prices.

A proven strategy for grabbing Apple-sized gains
Think Apple's multi-year, multibagger performance under the late Steve Jobs was an anomaly? Think again. David Gardner has demolished the market time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 10, 2014, at 8:06 PM, demodave wrote:

    I'd definitely like a remote back-up service. My Time Machine/Capsule is a nice combo, but it (the Capsule) doesn't travel with me. I am told that I can set it up to work remotely, but I haven't been successful at it yet.

    Gaming could be interesting, but for me it's just not all that important. I'm all in favor if it helps generate more revenues, though!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2832993, ~/Articles/ArticleHandler.aspx, 8/30/2015 6:58:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tim Beyers

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at or send email to For more insights, follow Tim on Google+ and Twitter.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****
GOOGL $659.69 Down -8.27 -1.24%
Google (A shares) CAPS Rating: ****