Analyst Jesse Tortora recently told several Apple clients that the software and hardware giant may be entering the video game industry using it’s leading brand name from the music market… xPod 360?

From TeamXbox:

Over the last few months, Apple has hired engineers with experience in both game software and console hardware. Back in September, the Cupertino-based company announced a bunch of games for fifth generation iPods, including Tetris, Texas Hold ‘Em and Pac-Man.

Tortora sees a scenario in which Apple could have both a home video game system and a handheld console.

“The game console device could be morphed out of some combination of the MacMini and iTV, while the handheld player could be developed as an enhancement to a future version of the widescreen iPod.”

Even Sony is taken Apple’s entrance in the video game market into consideration for that reason a Sony Computer Entertainment executive said:

“We have known for some time of Apple’s interest in the games market however it will be tough for them up against Sony and Microsoft and of late Nintendo. We believe that they will come into the games market late in 2007 but not with a pure gaming console. We are told that they are looking at a pretty powerful media centre with a big gaming capability. This is one of the reasons that we are looking at significant firmware upgrades between now and then to deliver a better media centre capability via the PS3.”