$500 non-upgradeable ipad vs $400 console. Console wins out.
If anything, it might create competition for portable platforms, but even then, on-screen movement controls suck on such small screens. I play 1 or two games on my smartphone, and it's generally when I'm in the bathroom for a while =P

The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey
http://www.thecarnivalofshadows.com
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