Originally Posted by iStevo
Steve Jobs is right, this new Apple TV will not be mainstream yet.
It will only be one of the building blocks in the right direction, by changing the platform to iOS/ARM/iApps, and lowering the entry price to $99. TV show rentals is a good thing, but not a game changer.
It will only go mainstream when Apple TV can really embrace 3 big industries:
1. Cable TV;
To challenge Cable TV, iTunes needs to offer On Demand Ad supported TV, TV subscriptions and Live Sports Streaming.
To challenge Game consoles, Apple TV needs more power from the ARM/GPU chips than currently available, and also needs to support games that play on Apple TV's big screen, but use as inputs the iPhones/iPad and iPod touches accelerometers, gyroscopes and touchscreens. Game center and support for multiplayer gaming are an integral part of these building blocks.
To take some market from the Telecommunications industry, Apple TV needs to offer Facetime conferencing, with multiple simultaneous users.
As we are observing, Steve is putting in place the required building blocks for Apple TV, and competition is just trying to stop pieces of it, instead of building an equivalent ecosystem. When they realize what Apple has done, they will be too far behind, just as Apple did with the iPod (MP3 player), iPhone (smartphone) and the iPad (tablet), markets that existed before Apple, but no one had a really successful product before.
Steve has already conceived the whole ecosystem, he is just putting it in place piece by piece.
Until then, Apple TV will look just like a Hobby, but someday it will become lethal to competitors.
There are certainly other new products in Apple's radar, like an iOS device for the car and an iOS based interactive table/surface (Apple's version of MS Surface).
But the market for these two products is still immature, because the ecosystem is not ready for them yet, needing some other building blocks before Apple's intentions become clear.