Opinion: High Hopes and Realistic Expectations of Apple TV

Apple is holding a special event tomorrow in San Francisco. As a longtime Apple shareholder--17 years and counting-- I usually don't get too excited about these events. If my expectations rise, I tend to end up disappointed. The company's recent moves in acquisitions could signal any number of massive changes to its business, from Apple TV incorporating gaming to more pie-in-the-sky hopes. While hopes are high, I'd like to keep my feet planted firmly on the ground with more reasonable hopes.

To the credit of the various rumors, Apple has made quite a few acquisitions that could be applied to gaming. Apple acquired PrimeSense in 2013 for somewhere between $300 and $400 million. This is the company that provided technology for the first iteration of Xbox's Kinect motion sensor device. The company has yet to use any PrimeSense technology in their devices, but it seems like they have been waiting for all the right parts to fall into place. At the very least, this is an interesting nugget for us to hold onto as I make the case for Apple creating a living room entrant in the gaming space.

Apple acquired augmented reality firm Metaio in May of this year. We have seen early examples of augmented reality being brought into gaming with PS4 and their camera as well as Nintendo and the 3DS. It remains to be seen if Apple is interested in using augmented reality in the iPhone, Apple TV, or the whole ecosystem. Let us consider this yet another nugget in our case for an Apple TV with gaming capabilities. 
Outside of the many acquisitions made by Apple Inc., there is further evidence that Apple plans on taking gaming more seriously. The company has filed two patents related to game controllers over the last three years. The first, for controlling portable devices with a controller. The second, for a snap on game controller for touch-screen devices. The company has also filed a patent for 3-dimensional user interface session control.

During the courtroom bickering between Samsung and Apple regarding patents, an email from Steve Jobs was uncovered where he referred to a human interface device for Apple TV called the "Magic Wand." Such a device could work in conjunction with the above mentioned patents to create a user interface that is truly new to the set top box product category. 

A few more patents from Apple suggest the company has been experimenting with projection. One is for a 3D mapping laser beam projector system and yet another for a glasses-free 3D projector display. There are a lot of patents that I could continue to go through in and around the gaming space (including Apple patenting a Beats branded gaming headset).

Any of that could come into play tomorrow. But it probably won't.

I would love for Apple to reinvent how we interact with our televisions the way that they did with tablets in 2010, smartphones in 2007, portable music players in 2001, and personal computers in 1984. I believe very strongly that this can be accomplished if the company is ready to combine the above patents along with an a la carte television subscription service that has been rumored for awhile. Who wouldn't want a glasses-free 3D projector that works with a range of human interface devices as well as a button-free user interface akin to Kinect? 

However, it seems more likely that Apple is going to release an improved iteration of the Apple TV set top box tomorrow. An introduction of some PrimeSense 3D motion sensor technology, an improved remote control by way of the "Magic Wand," and opening the Apple TV up to developers via an App Store would probably be sufficient for this year. The company recently opened up a dedicated Twitter account for App Store Games, and apparently is finally taking games more seriously. There is an outside chance that if Apple does announce App Store support for Apple TV that they could get a big developer on stage. Nintendo's recent entrance into developing for iOS definitely leaves a slight crack in the door for an OMG moment where Miyamoto or Reggie are on stage to announce Nintendo's support. Then again, that might be too much for this Apple and Nintendo fanboy to handle.

Tomorrow Apple will show us the next generation of iPhones and potentially some upgrades to the MacBook Pro and iPad lineups, but it is my hope that they have "one more thing" in the living room for gamers. I know that companies file patents for all sorts of things that never see the light of day, but I hold out hope that Apple still has a few disruptive products left in its pipeline. This hope could very well lead to disappointment tomorrow if Apple chooses to do a less impressive refresh of the Apple TV product.

Asif Khan, his family and his company Virtue LLC owned shares of Apple at the time of this article.

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.