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I could see them making an app based console where games would be very cheap (1-20$) where their huge games would be around 21-40$, depending on demand. They would design their controllers to be Kinect like to surf round the apps and games and stuff. They would push the download distrubtion heavily for their console, too.

Their marketing strategy would probably be more like we have very cheap games, clean user intefernce, and a large variety of games. Their console may be rounded around 500$, depending on what they do with it.

oh, and they will probably port all those iphone games to their console.

it would do better the ps3 if it did all of that, that I am certain.