Apple Inc (AAPL)

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12:31 AAPL Apple Computer rumored to be eyeing video game market - AppleInsider (91.43 +0.31) -Update-

According to Apple Insider, a recent series of checks by Prudential analyst Jesse Tortora indicate that Apple Computer has hired video game designers and may have aspirations of entering the video game market in long-term.

We think the video game market represents a distinct possibility for Apple, especially considering that it recently announced the availability of video games for its iPod through its iTunes store," the analyst told clients in a research note on Monday. He said the company could approach the video game sector in one of two ways -- via a home game console or a handheld device.

Tortora says such a move "would introduce a complex set of market conditions" for Apple, which has traditionally made its real money through hardware sales. Given the challenges presented by the video game market, Tortora said the company's decision to enter the video game market could depend on its need to defend its position against the competition in the battle over the digital home.