My prediction is that Apple has been biding their time and preparing to dominate the console gaming market. Think about it- the iPod touch and iPhone are becoming more and more robust in terms of hardware, I don't know the benchmarks but I'd wager they're close to consoles in terms of actual power. Apple has enabled "AirPlay" through AppleTV, which allows the iPhone/iPod to stream directly to the TV. So what you have…
http://en.wikipedia.org/wiki/Apple_Bandai_Pippin
It was an unmitigated disaster the likes of which wouldn't be repeated until the CueCat 5 years later, but it was their first foray into the gaming market.