A move into the console market from Apple is "a distinct possibility" according to Prudential analyst Jesse Tortora. The analyst believes that Apple could combine technology from its existing products to create a home and portable video game console.
"We think the videogame market represents a distinct possibility for Apple, especially considering that it recently announced the availability of videogames for its iPod through its iTunes store," said Tortora.
"The game console device could be morphed out of some combination of the MacMini and iTV, while the handheld player could be developed as an enhancement for a future version of the widescreen iPod," the analyst explained.
Tortora believes that a reason for Apple to make a move into the video game market would be to protect its position in the home entertainment sector - an area Microsoft is attempting to appeal to with its recent roll out of downloadable movies and TV shows on the Xbox 360. Microsoft themselves have also released a rival to the iPod in the Zune.
"There are no technical limitations to this capability, and Microsoft is already aggressively wooing the movie studios," noted the Prudential analyst. "This could adversely impact Apple's iTunes Movie download business longer-term, along with its iTV and video iPod sales."
Should we hear any more murmurings about Apple entering the video games market with its own system, we'll let you know.