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Bodhesatva said:
Please people, this almost certainly wouldn't be a traditional console. I would expect handheld gaming (or even just a more game-oriented iPhone) and a casual orientation. Nintendo is the company that should be concerned here.

I agree that this wouldn't be a traditional console -- Apple doesn't have the first party game developing muscle to get a traditional console on the market.  However, I don't think Nintendo needs to be weary.  This is a way for Apple to get video into the home that happens to have the extra profitability avenue of very casual gaming.  Perhaps mostly downloaded.

meh apple tired once and failed. Their products suck beyond anything. Unreliable iPods unrealible phone and well you see the picutre.

Apple never released anything with even close to the reliability problems of the Xbox 360.  If they did, there would be huge piles of broken ipods everywhere, as far more ipods have been sold than Xbox 360s will ever be sold.