said by inteller:No one will want to play craptastic iPhone games on a large screen and Microsoft is already killing them in the app space with stuff like Crackle and HBO GO. Sure the paywalls suck, but that can change over time. Microsoft was willing to deal with the cable devils in order to get a foothold.
Actually tons of people buy "iPhone games" for the large screen. PlayStation sells "PSN minis", Roku 2 has games. Hell, the
Angry Birds Trilogy is coming to the PS3 and XBox 360. That's the pinnacle iPhone game.
As for things like Crackle and HBO2Go. Both also exist on iOS devices.
If Apple were to ever enable apps on their Apple TV hardware, they would increase sales on them exponentially.