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If Apple enters the market, I can see them making something to compete for the casual gamer. That's where all the money is at the moment, and if you have no IP's to start with, mine as well go that direction.

Apple is the best in the world (by a mile) at inventing UI. I could see them putting all there effort that direction, and staying away from high end hardware. They also have Apple TV, and I can see whatever they deliver including that appliance.

So something like the Wii+Apple TV.