A free or really cheap ad-funded console from Google, that would be interesting. But I think a cell phone will come first, maybe that will expand into portable gaming. Stationary console next? Not sure.

A SNES-level console at $10 and free games, would it sell? Just going out on a tangent here...

 I doubt Walmart would go into the console business. Sure they have enough money too, but really they make enough profits off of just selling them. 

On the assumption that Xeon and Core 2 are similar performers (same core) and likewise for Bareclona/Phenom:

In server benchmarks, 2.0GHz Barcelona = 2.0GHz 65nm Xeon. Therefore 3.0GHz Barcelona is roughly 3.0GHz 65nm Xeon. 45nm Xeon is 10% faster clock-for-clock on average than 65nm Xeon. Therefore 3.0GHz Barcelona is roughly 2.72GHz Xeon. Therefore, per above, 3.0GHz Phenom is roughly 2.72GHz Penryn.

We have seen Phenoms at 3.0GHz with triple Crossfire and no special cooling or overclocking. Therefore the fastest Phenom at launch (3.0GHz) will be 91% of the speed of a QX9650. In fact, Barcelona has HT3 disabled, but Phenom has it enabled which will raise performance to parity I believe.

Seeing as both 3.0GHz Phenom and QX9650 will cost around $1000, which is totally out of most people's price range, Phenom will be absolutely competitive in the <$250 mainstream desktop space with 45nm Penryn. It also has slightly lower power consumption due to High-k metal gate on Penryn.

Apple would probably expand an ipod to also play games, but i cant see it being actually aimed at the DS market, just making the ipod a more attractive mp3 player.

I cant see any company, especially an american one even attempting it, they only heve to look at how much MS have thrown at the the idea so far.

http://www.anandtech.com/cpuchipsets/showdoc.aspx?i=3092&p=7

Intel wins.

Don't be stupid. That's nowhere near what Phenom will launch at. That's actually an immature stepping and later steppings have showed up to 3.0GHz as I said. In fact, I used that very article to prove my first point, which is that if Phenom is at 3.0GHz then it will be parity with Penryn at 3.0GHz.

 If they do what Sony SHOULD have done, they will be fine. Offer 3 devices: one with multimedia, one with just games, and one with both. Apple already has their stright multimedia device. So they Could have an iPlay and and iPlay core. iPlay could start at $300, the core at $150... or something. Above 150 for a handheld is a bad move though Imo. Sony should have started with a

$250 all in one device

$150 gaming device

$175 stragiht multimdia device- with 2 GB memory stick duo (when other get a $50 price cut, this unti gets a $25 cut, and memory is doubled)

Apple has shown they have already learned from Sony's mistake. They figured the iPhone was too higly priced, so they cut it by $200- AND gave thier earlybirds and $100 rebate- which hopefully keeps 75% of them early adopters in the future. 

just thought of something:games
Where would apple draw support? They would surly get initially strong 3rd party support, but what about first party?
Microsft, GE, Sony and Apple are basically in a media war, no way they are helping each other. So none of those title. Nintendo will always help themselves... and Microsft supports Nintendo thanks to Nitendo being enemies with everyone Microsoft's is enemies with... the enemy of my enemy is my friend :)
So what would apple do about 1st party exclusives/exclusives in general?
Also I think Apple needs to start with handhelds then grow... they failed with consoles once, remember? :P

 Phenom, is MUCH bigger. It also uses ALOT more power, and thus creates ALOT more heat.

More expensive, more power, more heat. Same performance.

Intel = Cheaper, less power, less heat. Same performance.

If I was to say a winner, I'd say intel.