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Any new console/platform should get a warm welcome from the gaming community. We came pretty close to a Sony monopoly these past few years and a world with one single console is not a fun place to be. I don't think gaming should be a "winner takes all" market and there's always room for more players, especially if they bring something new to the table.

Consider Apple entering the gaming arena as a win-win situation. We'll either have some great games to play with or we get to see them crash and burn. The iPhone runs on hype and apparently hype sells. More than 13 mil. iphones world wide in the first 15 months.

Having said that I recommend you take a look at the charts of iPhone games (at the Apple site). This is what casual gaming looks like. Games that you can pick up and play for less than a minute and with no learning curve whatsoever. Are they fun? They look like they are! Innovative? Some of them are. Cheap? Dead cheap. You can buy the whole top10 for less than 24 USD.

Is this good for us? Cheap never hurt the consumer.
Is it good for Apple? They make money anyway.
Is this good for the developers? If you are new and small this very good because it looks like the iphone leveled the playing field. If you're big (call me EA, ) can you really afford to develop games for a 0.99 market?