>>4
Yeah, and here's the kicker. New iPod with the same hardware as the iPhone 4 is coming out next month, and Apple is also launching their XBox Live like content distribution and online multiplayer gaming service called Game Center.
Here's a screen shot from the iOS 4.1 Beta SDK documentation.
http://imgur.com/yEnBr.jpg
It appears that Apple is about to go head-to-head against Sony and Nintendo in hand-held gaming. And they have the hardware to do it.
Disclaimer: I'm not an Apple fan. I'm an iPhone and Android developer, it's how I make a living, and I also have a Pandora kit at home for hobby programming.