There was only one word I could think of reading this entire post, and it was this:

"Steam"

Not relevant to consoles I know, but you're talking about Apple's delivery systems in the forms of iTunes yeah? Are you talking relatively of digitally distributed games for a specific console? If so I don't think that's going to happen for a long time yet in the gaming world.

Maybe Apple could test the waters though, in producing a Steam like system for iMacs to begin with, and whilst it probably wouldn't hit huge numbers of people, it'd certainly be possible for them to maybe intergrate a system into iTunes, they've already got TV and Movies in there alongside music right? PC / Mac games would be a step towards domination, but getting past Valve on that front would be a war already lost I imagine. 

I they are going into it, they need to be careful. Both Sony and Microsoft spent huge amounts of money and MS (having it's other businesses to back it up luckily) have lost billions.

If it's only a handheld they have a better chance of breaking it but Nintendo are too powerful in this market. It also might only be popular in the West...Or just a status symbol like the iPhone seems to be.

Apple in game? Eh? Windows was synonymous with gaming machines and they had a rough transition with few exclusives for the first few years.
Right now Apple computers really aren't made for gaming, how can they survive in a business that deals with, you know, games?

Hey Apple, want to get into gaming? Start putting games on your PCs.

Man you folks just don't get it,Nintendo has broadened the market by going casual,cheap and fun,and is now rolling in the dough.

How soon everyone forgets that sitting in the wings with a whole library of IP's is SEGA whose last console(DREAMCAST) coulda,shoulda,woulda won the last generation war if they had had the money to promote it to the masses.Sony ran roughshod all over the DC with all kinds of lies and promises that Sega could not combat because they were broke.

Apple and Sega are a natural match as Apple has the money and Sega has the games.Sega also just renewed the Dreamcast trademark,and they do want back into the console market,even though they are but a shell of their former self.

If Apple also wants in with decent launch titles,they should be talking to Sega!

@amcdc - Can't see it. Sega seems quite content to treat the Wii like the DC2. They seem to slowly be bringing all their series over to the Wii as is, and quite successfully too.

Why risk going exclusive with a system by Apple? What could they possibly gain?

I would love to see Apple try and enter the video games industry but four competitors rarely survive successfully side by side one always gets killed off.

In this case I think Apple should tackle gaming on its Mac computers before tackling the entire industry. The industry relies heavily on first party content and Apple has no history in creating high quality first party games. infact other then contracting Bungie I'm not sure Apple is even making games internally. I heard of the small games for IPOD but any functional full fledged internal studios at Apple?

 Fact is it takes guts to enter the industry and take on the likes of Nintendo and Sony. Microsoft had the balls and the internal studios and money to throw away. But Apple doesn't have the internal studios or the money at their disposal to truly compete in the industry.

That being said if Apple enters the industry and can give me some new high quality first party IP's I'd be glad to pick up their new console! 

Now that I think about it, I can't see Apple being successful as a gaming company. Their whole strategy with computers is making a really good OS people love with very reliable hardware which is pretty looking and then overcharge for it.

Same thing happened with iPhone, they charged more than 50% more just because they could. In gaming that wouldn't work at all. No one really care much what their console looks like, just how well it performs, how many good games it has and how much it costs. Plus they have no internal game development.

@Gamerace-you are right that Sega is treating the Wii as if it were DC2,but really only one game (M+S at the Olympic Games)has sold very well for them.Most of their other games on the Wii are not selling as well as they would if they were on their own console.
Apple does have a ton of money,but as it has been said no internal game division,and even though Sega is but a shell of their former self,they do have a ton of IP's,so Apple could treat them as if they were first party.

What kind of console do you think they would bring out?

Handheld or home console?

didnt apple make a system in the 90's but failed, and werent they making an igame?

I doubt Apple would be as stupid to enter the console market.

Apple entering the handheld market, however, is very likely.