Also, holy crap:Newell expects Apple to disrupt the living room platform with a new product that will challenge consoles, although he doesn't have any particular knowledge of that new product.
"I suspect Apple will launch a living room product that redefines people's expectations really strongly and the notion of a separate console platform will disappear," he said.
Newell reiterated his concerns about a closed model being the "wrong philosophical approach" but one that people will emulate because of the success of Apple and Xbox Live.
"I'm worried that the things that traditionally have been the source of a lot of innovation are going - there's going to be an attempt to close those off so somebody will say 'I'm tired of competing with Google, I'm tired of compeitng with Facebook, I'll apply a console model and exclude the competitors I don't like from my world.'"
Fries asked Newell to clarify whether he sees Apple as being a closed platform.
"I consider Apple to be very closed," Newell said. "Let's say you have a book business and you are charging 5 to 7 percent gross margins. You can't exist in an Apple world because they want 30 percent and they don't care that you only have 7 percent to play with."