Apple will release its device(s) – polished, with unified design, closely integrated with rest of its hardware offerings.
Google can then choose to let its industry partners respond, or actively force direction with a Nexus watch kind of product.
Apple might choose to respond by adopting features from Google where it’s lacking, attacking with lawsuits where it’s leading, and with refining the allure of its own product where it sees the need.
It’s a multi step game, one side has huge brand loyalty and an integrated device-platform play, the other has flexibility in strategy and ability to flank. One wants to maximise earnings from hardware sales, other wants more users on its platform.
Neither will play for a draw, though that’s a result both will gladly (eventually) accept.
Place your bets, buckle up, and get ready for a ride.
It’s Game On. Again.
In fairness, though, the current tussle over Ukraine (Crimea is already lost) is a much more interesting case study for Game Theory 101. Anyone written it yet?