The gaming industry is a gigantic market, and as the article points out Apple already has an incredible, widely-deployed touch-based platform on which to build games. As far as I know none of the other mobile gaming devices are touch-screen based. This opens up new possibilities for gaming that could be immensely profitable, and so I don't see why pitching a fourth functionality - mobile gaming device - onto to the iPhone's existing three - cell phone, iPod, Internet device - is that much of a stretch to you. Even if it just means aggressively recruiting third party developers to port their already existing mobile games to the iPhone device, and developing a special gaming SDK on top of their iPhone SDK, I could see Apple wanting to increase their already-impressive revenues by tapping into the enormously profitable gaming market through marketing the iPhone as a gaming device...

We've already seen Apple's interest in selling games for the iPod through ITMS. Clearly SJ has some interest in monetizing games and sees the obvious ways in which Apple could revolutionize the gaming market.