[smackfu]

These are two hard issues though.

1) The main thing people are complaining about in "TV" UIs is the cable box UI. If you want to replace that, you need to do the whole CableCard thing, and now DVR is a requirement since most cable boxes have that. And your TV doesn't work for satellite TV, sorry.

2) You integrate the game hardware into the TV and now you have lifespan issues. Is Apple going to support games on your TV for the 10 years you own the TV, as hardware continues improving? Or are you just going to end up with something that theoretically can play games but none are actually supported on your old hardware?

[Unoeufisenough]

You don't integrate the game hardware into the device. It's relatively easy for the cableco to give you fast, low ping bandwidth to a local cable switch within their network. That's where you put the game hardware. You create a new gaming platform and virtualize the console to a cluster hosted by the cableco. This game-rendering cluster is scalable, upgradeable and on demand. You don't need to distribute a lot of expensive, loss-leadin, power-hungry silicon to every house - that ends up sitting idle 90% of the day.