Apple’s Public Secret: Macs and PC Gaming

For those financial analysts who took the time to comb through Apple’s fiscal fourth quarter results last year, it was noted that despite overall declines, Apple Services – the division which includes Apple Music, Apple Pay, and the App Store – posted very healthy growth of 24% up to $6.3 billion. If this growth continues the Services division is on track to become a Fortune 100 company in its own right later this year. A decent proportion of that revenue will come from mobile games. It’s fair to say that mobile gaming has a far wider market reach than console or PC, partly due to cost and accessibility; the success of apps like Angry Birds and Pokémon GO are a testament to its appeal. Indeed, mobile gaming is generally seen as socially more acceptable than PC or console gaming, which still has a reputation (at least in many European countries) as being the preserve of the youth and hobbyists where a much larger financial commitment is required.

Despite the importance of gaming to the mobile platform, and increasingly to the stagnating PC market, Apple has resisted overtly marketing towards gamers, instead leaving that up to individual app studios. This is understandable for a brand which positions itself as luxury/lifestyle, the technical equivalent to a designer fashion label, allowing for Apple products to perpetually command high ASPs. Just as the iPhone/iPad is now the gaming platform of choice for many consumers, Macs can be considered a PC gaming alternative. According to the latest survey from Valve’s Steam cloud gaming platform – the most important global online shop for PC games – Mac OSX now makes up 3% of all users, with 50% of those users being Macbook Pro owners. Back in 2015 Valve stated that Steam had over 125 million players, meaning that even two years ago there were 3.75m Mac OS gamers on their platform alone. Looking further into Steam’s data, the top selling games for Mac OSX include all of the world’s biggest eSports titles such as Dota 2 and Counter-Strike: Global Offensive.

A common question repeatedly asked by channel and vendor partners is why CONTEXT includes Macs as part of the PC gaming market. The simple answer is that when the PC market is segmented according to what is gaming capable based upon system specs, Macs are part of the gaming market. At the low-end of the market, Apple has a healthy share thanks to the high number of iMacs utilising the AMD Radeon R9 M390 and similar GPUs. This configuration will not allow for full GFX settings on many AAA game titles, however it will still run popular games with acceptable framerates. Thanks to Apple’s announcement in early June that high-end VR-ready GPUs would soon be available either as a tethered add-on or as a standard system spec, Macs will be better equipped to compete in the enthusiast-end of the PC gaming market. In the case of the Thunderbolt 3 external GPU, this allows for a VR-ready upgrade at $599. This might seem steep given that AMD’s Radeon RX 580 retails for $300, however $599 is still cheaper than buying a new VR-ready notebook, and the dev kit also comes with a $100 discount on the HTC Vive.

blo2.jpeg

In the fashion world, high-end products are sometimes adopted by a non-target market – the story of Burberry’s clothing in the UK is a good example – and PCs have a history of being co-opted for purposes beyond the vendor intention. In the end, consumers will always have the final say on how they want to use a technology; as the Apple Services financials show, a vendor may wish to keep their success a public secret.

by JW

Leave a comment

Filed under gaming, Mobile technology, PCs

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s