Are the rumors true that Apple is designing its own video game console.?

Numerous rumors all over the internet that by 2016 Apple could have its own Video game console. More intuitive than Microsoft and Sony combined. is this really true or are they going to merge with other companies to develop it.
Update: The PipPin sucked obviously. But today apple products are amazing they sure could design a video gaming device today. This isn't Macintosh of the 90s this is Apple of the 2010s. They sucked in the 90s today they are better than ever.
Update 2: If Apple and Nintendo paired up i'm sure they would create something amazing. Next generation of gamers who have never even herd about the PipPin would play it. Companies learn from their mistakes. Apple computers have flopped before. Every single technology company has had products that have flopped. That... show more If Apple and Nintendo paired up i'm sure they would create something amazing. Next generation of gamers who have never even herd about the PipPin would play it. Companies learn from their mistakes. Apple computers have flopped before. Every single technology company has had products that have flopped. That doesn't mean they would flop today.
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