Rumours about what Apple is going to do next are as common as bad weather in winter and just about as accurate as the weather forecast. The latest supposition is that Apple is planning to enter the lucrative console games market.

According to Wall St analyst, Jesse Tortora at Prudential, there is distinct possibility ever since Apple said that users will be able to get iPod games via iTunes, that it could combine technology from existing products to create its own console offering. Tortora said:

“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. 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 reason given for Apple’s supposed entry, according to Tortora, is that it needs to protect its position in the home entertainment market which is currently dominated by Sony and Microsoft. Microsoft in particular has made some aggressive moves, with the launch of its iPod rival, Zune, and the new offer of movie and TV downloads to Xbox 360 console owners.

“There are no technical limitations to this capability, and Microsoft is already aggressively wooing the movie studios,” he noted. “This could adversely impact Apple's iTunes Movie download business longer-term, along with its iTV and video iPod sales.”

Frankly, I don’t see Apple launching its own console since most console makers lose money on the hardware. It’s also a very crowded space. That said, the software games side of things makes a lot more sense and wouldn’t require the same kind of investment. Still, it is only a rumour, eh?

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