Market Overview

Amazon To Launch New Game Console Alongside PlayStation 4, Xbox One

Amazon To Launch New Game Console Alongside PlayStation 4, Xbox One

First Apple (NASDAQ: AAPL) was expected to add apps (and most notably games) to Apple TV.

Then Google (NASDAQ: GOOG) was rumored to be developing its first game console as a counterattack to Apple's efforts.

Now Amazon (NASDAQ: AMZN) is rumored to be getting into the market as well.

According to Game Informer, unnamed sources recently approached the publication with information about the upcoming console.

Related: Google Thinks Apple is Building a Game Console (AAPL, GOOG)

In short, Amazon's gaming machine will be based on Android and arrive before Black Friday (November 29 -- the day after Thanksgiving). It will ship with a controller that's being designed specifically for the console, allowing consumers to play without the need for other devices.

By comparison, many Apple enthusiasts expect the Mac maker to turn the iPhone and iPad into Apple TV game controllers. Users may not be able to buy a separate controller to play games.

According to TechCrunch, Amazon's console will not contain a processor from AMD (NYSE: AMD) or NVIDIA (NASDAQ: NVDA). The graphics engine will be powered by Qualcomm (NASDAQ: QCOM) instead -- a first for the game industry.

Nothing is known about which games may or may not be available at launch. It is also not yet known if Amazon will opt for the online-only restrictions that nearly crippled Microsoft's (NASDAQ: MSFT) Xbox One.

Amazon is likely to build a console exclusively for small downloadable games (think megabytes, not gigabytes), so don't be surprised if it cannot play the next Call of Duty. As a cheaper device, it may not be powerful enough to handle a game of that magnitude anyway.

Instead, the device will reportedly rely on the existing slate of Android games that have already been brought into the Amazon marketplace.

While this unit will face stiff competition from Xbox One, Sony's (NYSE: SNE) PlayStation 4 and Nintendo's (OTC: NTDOY) Wii U, Amazon is expected to compete on price.

Game Informer's Mike Futter speculated that Amazon will also use its position (as a major player in TV sales) to heavily promote the new console to millions of existing customers this fall.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: Amazon AMD Apple Apple TV GoogleNews Rumors Tech Best of Benzinga


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