it would fail.

No chance in Japan, just like MS with Xbox1. MS made some steps with the Xbox360, but still nowhere near the Japanese competition.
No franchises at all.
No relationship with 3rd parties
No online network except iTunes.

I want Apple to try and fail actually. They need to realise that overpriced products do not always sell on design alone.

It would push Sony out of the console business. It would sell like hotcakes among Apple drones and casual gamers, and the trend in the industry tends to be towards casual gaming. Microsoft, wth Natal, seems to be following that trend more than Sony is with its wand.

In short, it'll be just like the Wii.

This. If you think about this as apple making a pure gaming console, then no, you'd probably either see it not happening or as an inevitable failure.

You're funny

It would be overpriced and underpowered. Hipsters would love it because you could toast bread and do other useless things with it.

it would fail, Apple's philosophy dosent apply to the games industry.

People are looking at iPod touch and iPhone and thinking that the sales of those would translate to an iConsole sales. How many iPhone / iPod users have apple computers? The vast majority of iphone/pod/touch users have not surrendered their lives to Apple. Without a competitive price it'll only be true believers who are gamers who will buy, and that probably isn't enough

If you want to get a feel for how the iConsole would sell then look at the desktop devices Apple makes, not the handhelds.

If anything it will be a multi-media device that plays games, a bit like how Sony tried to market the PS3 (and failed in that approach).