Analyst Jesse Tortora is saying that Apple could possibly expand into the gaming market.

“The game console device could be morphed out of some combination of the MacMini and iTV, while the handheld player could be developed as an enhancement to a future version of the widescreen iPod.”

Many people have already been taking some of Apple’s ideas when it comes to consoles; downloading demos, games etc. via Internet. Nintendo seems to have borrowed a lot from Apple, especially their white porcelain design. It would definitely be an interesting move on Apple’s part.

“The video game console market is notorious for subsidizing hardware to sell profitable games… Apple would then have to either rely on the sales of its games and downloadable movies to make enough profit to cover losses on hardware or figure out a strategy to make profits on hardware itself.”

Remember that Apple already offers game downloads for the iPod, which can be considered as signs that they’re thinking of something.
Via Evil-Avatar