Apple Inc. (AAPL), Google Inc (GOOG): A Winner in the Battle for the Living Room

Industry giants like Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) are stepping up their efforts to win the living room war, an area that could have huge financial and strategic implications over the years to come. It´s still too soon to tell who the winner will be, but one thing is looking quite clear, though: Netflix, Inc. (NASDAQ:NFLX) seems to be in an outstandingly strong position to profit from the future of TV.

Microsoft Corporation (NASDAQ:MSFT) is having a hard time lately: sales of Windows 8 have been a disappointment since tablets have continued displacing PCs over the last few quarters, and the company is having serious troubles in mobile with lackluster demand for its Surface tablets.

But the company has always remained strong in gaming with its Xbox console, and it’s trying to leverage that strength to expand into computing and TV with the new Xbox One. The new console is intended to be an all-in-one entertainment solution combining games, music and online video with the ability to jump from one to another as simply as changing a TV channel.

We still need to see how the Xbox One resonates among consumers, but Microsoft has a product that sets it apart from the set top boxes built by competitors like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). If the company succeeds in its attempt to make the new console a Trojan horse to conquer the living room, this could be a real game-changer for Microsoft.

Apple Inc. (NASDAQ:AAPL) knows it needs to do much better in TV if it wants to be at the same level it has achieved in smartphones and tablets, and the company is admittedly working on that area.

Tim Cook has said on several occasions that the company has “intense interest” in smart TVs, and a full-blown television set from Apple Inc. (NASDAQ:AAPL) has been rumored for a long time. The company has only taken modest steps, like improving its $100 TV box so far, but according to reports from The Wall Street Journal, Apple Inc. (NASDAQ:AAPL) is also collaborating with cable companies and TV networks for a new online TV service,
which may even include a premium option allowing users to skip ads.

Apple Inc. (NASDAQ:AAPL) is a famously secretive company, but one thing looks quite clear: the Cupertino giant is moving forward with its plans to revolutionize the TV.