They actually did exceptionally well to crack a market that had two main players in it and was dominated by Sony. If you are going pay anyone out, pay out sony, how they managed to loose the huge market share and come in third. Nintendo rocked the Market with the Wii but Microsoft can consider their entry into the console market to be a success, yes it cost them, but they choose to enter at a time where Sony dominated the scene. 2nd is damn good.
Apple will not be entering the console market, what they will be trying to do is push gaming on the portables (iphone, itouch). Though good luck with that, the Nintendo DSi is 10x the gaming device that an iphone is, I do not care if you can get an external controller post 3.0, the last thing people are going to want is to carry a controller around with thier portable gaming device.
If Apple were to try to crack the console market, it will be a good reality check for them.