Not necessarily. But I think the market for gaming-only consoles has peaked. That’s why it’s smart for Xbox and Playstation to focus more on all forms of entertainment in the living room.
Console gaming will long have its die-hards. But casual gamers already far outnumber them. I think focusing on a dedicated gaming controller is the wrong way to think about it. Apple already has controllers in the shape of iPhones and iPads. Maybe a slightly re-worked iPod touch does come with a television device one day. But all they really need to do is open up an SDK for the Apple TV and the flood of games will follow.