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Is The iPhone Apple's Key To The Living Room? (AAPL)

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Apple's (AAPL) Apple TV set-top box hasn't taken off. So might Apple's best entry into the living room be via some of its portable gadgets -- the iPhone and iPod touch?

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Below, a video of a very early example of what that could look like: Freeverse Software's Moto Chaser game being played on a flat-panel TV, via a simple A/V cord, via an undocumented bit of code in Apple's latest iPhone firmware.

It's not perfect, and not even ideal. Blown up to hi-def TV size, Apple's graphics probably look more like a Super Nintendo than a PS3. Lots of room for performance improvement, provisions for battery life, etc.

But we would spend $20 or $30 for an adapter in a heartbeat to play our iPhone RealSoccer game on our HDTV at home, watch iTunes movies, etc. And even if Apple decides to bake this sort of feature into Apple TV -- with multiplayer gaming, perhaps? -- it'd be a compelling, unique selling point.

See Also:
Steve Jobs: We Still Haven't Figured Out The Living Room
Estimating Apple iPhone App Sales So Far: $50-$100 Million In Revenue
Apple: 300 Million App Downloads, But Growth Flat

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