[note: I did not read the article posted above before replying to this thread]
I'm not sure where everyone got "console" out of the "entering gaming market", but I've read a lot on this today while at work(other articles & replies), and it seems like Apple wants to expand what they are already doing with iPod and possibly start making exclusive gaming content for the "all-but-dead" Mac gaming scene.
It could even be possible that iTV will let the user play some non-grafix-intensive games on their tv from the computer using the remote control. There is absolutely no way Apple will spend $$$ doing R&D to make a console(2010?) to compete in a market where Nintendo is the only profitable contender and Sony & MS are bleeding money out of their ears fighting for the living room space.
What I would like to see happen is Apple team up with Nintendo and release the iWii, which will be the Wii Premium, with full iTunes support(iTV built in?), 100GB HDD (for music, videos, pictures, game saves, VC games, DVR, etc. etc.), more RAM, and whatever else you could think of and maybe release it for $499-$599. But nothing of that sort will ever happen.