In terms of casual gaming, the xbox 360's Kinect and Wii have already been wildly successful. One could argue that as an entertainment all in one hub, where the whole household buys casual games over the marketplace and watches TV shows and movies effortlessly, the xbox has failed.

This is the device Apple and Valve might be building. Not only are they going to try and streamline the software and UX of the whole thing to be in line with Apple's standards but I think they are also going to try to make it a replacement for cable tv. This is something Sony and Microsoft have not tried to do with their consoles, which confuses me.

Personally, I think Apple should just make a T.V. Apple has become such a strong brand that people will trust their hardware and software, even if the markup is somewhat outrageous.