Google isn't looking to take on Microsoft (NASDAQ:MSFT) or Sony's dominance in the space. Both companies have sold about 70 million units each of their latest consoles, and they're firmly planted within the gaming market with both their fan base and game makers. Google's angle would be to create an inexpensive console for playing Android games, rather than an expensive box for top-tier gaming.
It's not a revolutionary idea, but it's a good one. The daily revenue from the top 200 grossing apps in the Google Play store is $1.1 million. Obviously not all of those are games, but the majority of them are.
But it's likely that Google's entering the gaming space because it's afraid Apple (NASDAQ:AAPL) is moving in that direction, too. Apple released some specs on a gamepad controller just last month, proving Apple TV is one step closer to becoming a gaming console. The new game controller standard would bring all of Apple's game developers onto the same page and create a unified gaming experience for its customers.
Back in February, MacRumors mentioned that one of the first engineers to work on the original Xbox posted this on his blog:
Why can't I write a game for Xbox tomorrow using $100 worth of tools and my existing Windows laptop and test it on my home xBox or at my friends' houses? Why can't I then distribute it digitally in a decent online store, give up a 30% cut and strike it rich if it's a great game, like I can for Android, for iPhone, or for iPad?
When you put it that way, it seems like a no-brainer for Apple and Google to release console-like gaming.
The rumored Google device will be designed and marketed by Google, which would give the company Apple-like control over the device. Google has opted to hand over Android to OEM vendors in the past, but a 100% Google console would likely receive far more attention than releasing the device through another company.
A Google console could bring in obvious revenue from app sales, but it would also bring Android one step further into the home market. So far, Android has been incorporated into a few home devices, but a Google console is the most logical progression, since games are already a popular part of the OS. Going forward, investors and consumers need to keep an eye out for how both Apple and Google approach in-home gaming, as it's a new area for both of them -- and one with lots of future potential.
Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.