OK, but you could do iPad-style games. All you need is a cool input device. I'm thinking a webcam, and gloves with a specific bandwidth of color. Though the image processing might be too much.
Maybe for the input device just attach it to a big multitouch screen. Toss in a battery, wifi (maybe 3G?), ~32GB of flash memory. Then people could use one portable device and developers could write games and publish them to a central store for only ~1-5USD a piece.
