Apparently it has Intel Integrated Graphics... ;-)
Of course it's an April Fool. On the wider issue of whether Apple would ever sell such a thing, I suspect not for a while. They would probably follow the same path as Sony if they ever did, releasing a regular console and working on building a reputation for it. Nokia tried the "Let's jump right into games" thing, and failed miserably despite a fairly reasonable product, 1st generation flaws notwithstanding.
Pippin isn't really relevent here. Pippin was an attempt to build a platform, by a company which bears little resemblance to the Apple of today. Pippin's failure was the strategy, timing, and product design, not the notion of consoles. More important is the fact it's a crowded market, with Nintendo, Sony, and Microsoft at each other's throats. There's little evidence there's room for a fourth platform. There's actually virtually no evidence that there's room for a third platform in portable gaming given the PSP's increasing problems in that area. Sony will continue to throw money at it, but it seems to be doing better as a portable video player, bizarrely enough, than a games machine.
Nice spoof though. Perhaps a forthcoming Apple "Nokia 770" will be functional enough to make a good portable games player.
