It's not going to get any easier for them: iPhone 4S and iPad2 apps that play with Apple TV look to encroach on living room consoles. http://www.engadget.com/2011/10/07/real-racing-2-shows-off-i... Fortunately for them, the iPod Touch can't do the mirroring so they have a year to defend the living room.

Project forward a generation or two, though, with improved and widespread Apple TV and better graphics, and it's hard to see how the Xbox and Playstation won't be affected - the Infinity Blade 2 demo might not be state of the art, but it be enough for functionally similar ports of console games. I think we're at most 3 years away from having iOS be the lead platform for Madden and/or FIFA.