Also If you remember correctly when Apple announced OS X the first time they had an enormous amount of BUZZ generated around OS X, and everybody was talking X. Then Microsoft's little gaming announcement wasn't that impressive in the minds of anyone compared to PS2, and they went, and announced they were naming it the X-BOX (putting that big M$ "X"
- BUZZ word out there), and it totally shifted all Apples BUZZ their way. M$ totally stole Apples OS X BUZZ with the X-BOX, and Apple can do the same in reverse this time around if they get to work, and come up with a really cool home media center with iTunes integration, and any number of Apple utilities, and features.
But considering gaming is such a huge industry, and everybody is going to be buying, Apple would be naive to try to go head to head with console gaming without games integration.
They would have to make it the real digital hub with some kind of connection that links up to the M$ 360º device, or even better. All 3 gaming devices. Other options is to partner up with one of the 3 (= 2 not nintendo) And have an exclusive deal with iTMS included that would boost that particular device into the lead category. Now that M$ has shown their hand Apple could team up with sony, and link to their device, or both, and have the real media hub for the home. I know XBOX it's supposed to run with windows Media Center, or something, but you never know. Apple could try and partner up with all 3.
I'd like to see them partner with M$, but I think they (M$) are going to try and monopolize the XP media center thing, around the 360º. If M$ did give Apple an nod in to the 360º with such a device it would hardly hurt M$. Apple could pay some licensing, and M$ wouldn't look like a monopolist, It could still work with the XP media center too. Then Again M$ has shown their hand which could give Apple, and Sony much needed extra time to structure a PS3 / iHome network configuration that would knock the socks off the XBOX and put Sony as far ahead of the XBOX again as they were in year one.
Random thoughts on how Apple could take advantage of the new gaming consoles, and generate an enormous amount of BUZZ, and money for them self's again this X-MAS, and in the following year.
 Probably should have put this in another thread.