Did anyone think that Apple could enter the console market successfully if they start with the Apple TV? Open up the Apple TV to allow 3rd party developers to make apps, namely games. Have those games use iPad/iPhone for controllers. With this start, people would still see it as an Apple TV, but with some games that are exclusive to Apple TV. Users are now playing games on their TV. (Even though some already are, like MetalStorm) After users see the device as a gaming console and home theater, they could start to make their own games, and physical controllers, and would hopefully get market share of gaming consoles.