I guess it's possible. A more powerful Apple TV positioned as an all-in-one living room box would be a compelling alternative. People could use their iPhones and iPads to download games, then use them as controllers to play those games. And they could stream games [i]from[/i] their mobile devices when they go to a friend's house. An included remote/controller - just as uncomfortable as Apple's headphones - could work for those without an iDevice. Apple would have to decide what it wants to do with games like CoD, though. While having big titles would help it out at first, one of the advantages to developing for mobile devices is that you don't have to go up against huge juggernauts. I think Nintendo should've done something like this with its new console. The dinky tablet controller is a gimmick like the Wiimote, except it's worse. And, just like the Wii, nobody's bringing their awesome third-party titles because they don't want to have to deal with the gimmicks. Unlike Sony and MS, Nintendo has no ecosystem of services or hardware to fall back on. All they've got are really good, really popular first-party titles. So, fine, say -blam!- the haters and go full wiitard. Build a 7" Android tablet that streams to your TV, and unleash the mobile developers (and their payment model) on the living room. Stick games and apps and shit online and make up any losses on hardware by overcharging for software. Break $50 Mario into 5 successive games and charge $12 for each because who's going to know the difference. Little Bobby's mom will think it's better than paying $60 for "that violent Playbox 350 game".