EA seems to think so. Electronic Arts VP Eric Soderlund told industry site MCV that he believes the iCompany could successfully break into the home gaming console market, even though it would be no easy task.
Personally, I think Apple has a great thing going with it's iPhone/iPod/iPad line of devices and entering into the battle for the living room might not be the greatest move right now. While it may be true that there are a lot of fun games on the App store- there are also an awful lot of clunkers... and a metric ton of shovelware.
I would like to see Apple clean the shop up a bit and commit itself to real, retail quality, titles (at least for the iPad, the iPhone is just a mobile platform at heart) before they entered into another level of hardware competition.
At the end of the day there's really nothing to this yet. I don't doubt that Cupertino has plans somewhere, on some shelf, for a game console, but at present this is just a third party publisher waxing poetic- food for though though it may be... don't rush it Apple-