Mezzotint

I believe they could make better use of themselves by teaming up with someone else, like Sony. I highly doubt that Microsoft would (Obvious reasons) and Nintendo to my belief seem to keep to themselves.   
 
Ow and I didn't know about the  Pippin, sounds like something the Angry Video Game Nerd should cover.

If Apple were to create a Games Console (home system) what do you think they would bring to the table over other companies? 

I bet theres a ton of people that would still pay it, kinda depends if Microsoft wants people to hate them or not.