I think so. I doubt the console market will see growth in the next generation.Apple will coil around them like a python and squeeze them all simultaneously.
That's what I think will happen. Tim Cook was hinting back in January that they are thinking about a big push for some sort of TV-based product, and there are a lot of rumours swirling about this. With the position they are in with iOS and Apple's focus on bringing the same sort of experience across their platforms, it would only be natural for gaming to play a part.Apple's really only in the mobile space right now though. If they go big in TV gaming Nintendo is the most vulnerable.
There's also the iPod Touch pinching from...the side? Since Apple's products are convergence devices, it's hard to make direct correlations with gaming products.In handhelds that I'd say they're pinching sort-of from above since ipads cost a lot more, but also from the side because you need an iphone/ipad for other things (negating the up-front cost for gaming to some extent because you already have it) and can just have a game or two as well.