Apple TV to challenge Xbox and PlayStation with gaming-focused 4th gen device

Apple looks set to announce a new Apple TV at a press event taking place on Wednesday 9 September and it will reportedly focus on gaming in an attempt to challenge the dominance of Microsoft's Xbox One and Sony's PlayStation 4 in the home console market.

The new Apple TV is said to include a remote which doubles as a controller, extra processing power for improved graphical prowess and an App Store for people to buy and download their games. The details were revealed to The New York Times by "people briefed on Apple's plans who spoke on the condition of anonymity".

Jan Dawson, chief analyst at the technology research firm Jackdaw Research told NYT: "I think Apple's going to create a big new category in gaming, one that others have tried and failed to create before. What the Apple TV has the potential to do is to bring casual gaming to the living room and make it a much more social activity."

Whether Apple can make a dent in the market of more "hard-core" gamers who play on these devices remains to be seen, but it would seem unlikely and a lot will depend on exactly how Apple approaches the new device. Will we see games developed specifically for Apple TV to complete with the Halos, Call of Dutys and Fallouts of the world, or will it essentially be an additional portal for existing iOS games? How too, will it differentiate from similar platforms like Amazon's Fire TV.

Apple, almost accidentally, changed the gaming industry with the release of the App Store in 2008, which caused the mobile games market to explode in popularity. Games like Angry Birds, Clash of Clans and Hearthstone have proved hugely popular in the years since, generating billions of dollars in the process.

The cheaper price point of around $150 (£99) according to those anonymous sources who spoke to NYT will be appealing to a more casual audience compared to the Xbox One and PS4, which are at least twice that price.

"It's a totally different experience," added James Gwertzman, chief executive at PlayFab – a company that helps developers with online functionality. "Xbox and PlayStation have been very successful at building those living room experiences, and Apple and Android have been very good at 'play a game on the bus' experiences."

Apple is expected to reveal the new apple TV at its event taking place on 9 September at 6pm BST.

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