Good article.
Anyway if we were to pretend that Apple did indeed go down the route of Consumer Electronics Company and were to enter the video games market, I reckon rather than enter it as a 4th competitor they might combine forces with Nintendo. I've always felt that Apple and Nintendo shared much in common with each other and they both see innovation as an important part of their business, so ideally I would love to see what the two forces combined could do together.
Where will Apple be in 10 years?