“Q: What do you think of the tablet PC?
Jobs: We’re not sure the tablet PC will be successful. It’s turned into a notebook that you can write on. Do you want to handwrite all your email? We have all the technology ourselves to do that–we just don’t know whether it will be successful.”

–Apple CEO Steve Jobs, International Herald Tribune, Sept. 2002

“There are no plans to make a tablet. It turns out people want keyboards….We look at the tablet and we think it’s going to fail.”

– Steve Jobs, D: All Things Digital Conference, 2003

At a 2007 all-hands meeting to discuss the iPhone, Apple CEO Steve Jobs remarked on the company’s product roadmap. The machines Apple will bring to market in the years ahead, he said, would be “off the charts.”

This morning, Jobs made good on his word, unveiling a new multimedia tablet device called the iPad.

As predicted, the Apple iPad is a portable gadget that falls between the iPhone and Apple’s laptop line. So far, Apple (AAPL) has been highlighting the machine’s ability to deliver audio and visual stuff, including a new way to view the New York Times (NYT) via a custom-made app, games designed by Electronic Arts (ERTS), and an iBook store supported by five major publishers and designed to rival Amazon’s (AMZN) Kindle platform.

The hard facts: IPad sports full multitouch functionality, includes 16 to 64-gigabyte flash storage, and provides 10 hours of battery life and one full month of standby time. It is one-half inch thick, weighs 1.5 pounds and comes with a 9.7-inch IPS display, which looks quite sharp.

The standard OS X applications look and work much the same as on the Apple laptop and iPhone. Using a pixel-doubling function, the iPad scales iPhone apps to full-screen without losing much in translation. A new iPhone software development kit geared specifically to the iPad aims to encourage development for its larger screen and is being released today.

Jobs unveiled two big surprises: The lowest-priced version of the machine will cost $500, well below the $800-$1,000 price point pundits had predicted. The lowest-priced 3G-capable machine will be $629. The top-priced device, a 64GB version equipped with 3G capability, will be $829.

Rather than go with Verizon (VZ) as a wireless carrier, Apple is sticking with much-maligned AT&T (T). Wireless services don’t come with the device, but will be sold on a monthly basis. A 250-megabyte plan will run $14.99 in the U.S., and an unlimited plan will go for $29.99.

The complete liveblog of this morning’s Apple iPad event can be seen here.

What happens when that changes?

We might find out sooner than we think. Nielsen’s newest “Three Screen” report, which measures video consumption on TV, the Web, and mobile devices, shows that TV-time did indeed drop–slightly, but still a drop–during the last three months. Here’s the table (click to enlarge):

If you make your money in the TV business and you want to sleep better at night, you can tell yourself that this is just a single report, and that a 0.4 percent drop isn’t that big of a deal. And you can note that people are still spending almost all their time in front of the TV–129 hours a month is 32 hours a week, which is basically a second job.

But if we see more of these declines? That’s a problem, and it’s probably an inevitable one: It just stands to reason that the more time people spend logging on at Hulu or Google’s (GOOG) YouTube, the less time they’ll have for the boob tube.

If the TV industry is smart and lucky, it will be able to navigate this transition by making sure that much of what people end up watching, and/or paying for, on the Web is their stuff anyway. There’s even a scenario where the TV guys end up getting more per eyeball via the Internet, but that seems fairly far-fetched to me.

But game sales have been weak in 2009, even as movie theaters set box office records. What gives?

I’ll let someone else try to explain the movie side of the ledger (although those box office numbers aren’t always what they seem to be). But it turns out that there’s a simple explanation for game slump: It’s that gamers are huddled in their basements playing Grand Theft Auto over and over and over.

Gamers are indeed spending more time playing videogames, say new data from Nielsen. It’s just that gamers aren’t spending more money on games. Instead, they’re playing the games they have, buying used games, and increasingly turning to game subscription services.

Here’s the argument in chart form–you can get a summary here or download the full report here (PDF). Click on the charts to enlarge:

Hours played:

Used games purchased:

Subscription rate:

All of which explains why Best Buy (BBY) and Wal-Mart (WMT) are both getting into the used game business and why Blockbuster (BBI) and GameFly are expanding their game rental business. Now, if you’ll excuse me, I’ve got to get back to my game of Hover Kart.

This is old news, literally: Chen left his spot as chief technology officer last fall, though he remains employed at Google (GOOG), which bought his company for $1.65 billion in 2006. “Steve shifted his focus to help with some Google engineering projects. He’s still involved with YouTube and invested in its success,” says YouTube spokesman Ricardo Reyes via email.

Google hasn’t officially named a replacement chief technology officer for Chen, and people at the company say the job no longer exists. But the highest ranking engineer at the company is now Louis Perrochon, who has been at Google since 2003.

Chad Hurley, who co-founded YouTube with Chen and Jawed Karim in 2004, remains the company’s CEO. But it’s not unusual for founders to move on from their companies within a few years of selling them.

The fact that Chen’s move  has gone unreported until now should underscore that his departure didn’t represent a major org chart reshuffling. The technical challenges of the site have long been handled by a large engineering team, which makes sense considering that the challenges themselves are large. YouTube now uploads 20 hours of video per minute.

Chen was reportedly working on a technology incubator project last fall along with BitTorrent co-founder Ashwin Navin; no word on what Chen is actually doing at Google now.

Here are Chen and Hurley in a video they shot and uploaded on Oct. 9, 2006, the day they sold their company to Google.