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Gotta agree with FishyJoe, comparing Apple entering with iPod + iTunes is nothing like entering the video game market with a multipurpose device. At this point of time, the DS is unbeatable by anything else than DS2.

And on another note, while Nintendo is quite clearly stated that they are targeting everybody with their strategy, I believe Apple's strategy to be completely different. They are not targeting everybody with their products, each of which has been designed for a different use and different target market. And they are highly succesful in doing that, so they have little reason to change. Right now, they are just building the blocks they need to expand their offering, but not downmarket, instead they are expanding laterally.