iPod, The Gaming Console

Why would Apple want to introduce a video iPod? My theory is, Apple is going after the portable gaming console market.
Olga Kharif

Although it's a near-certainty that Apple will soon introduce a video iPod, many analysts are wondering why exactly anyone would want a digital music player that can also play video files. I mean, would someone really want to carry around a home video of a family vacation in Florida?

Actually, a video iPod makes a lot of sense if considered in the following light: With this product, Apple is edging into the portable gaming console market.

Portable gaming is huge. Nintendo DS was a hit. So has been pretty much every other major-brand portable gaming console that's come out in the past few years. Interest in video games is on the rise. Video gaming is more mainstream nowadays. Lots of users like playing on the go.

Apple, with its tremendous brand -- particularly amidst the same geeks who like playing video games -- could make inroads into that market fast. Sony, Nintendo, beware!

Even if Apple makes a few simple games available on its video iPod, that could lay a good foundation for entering mobile gaming as well as the portable gaming markets.

Before it's here, it's on the Bloomberg Terminal.