Conceptually, Apple could make an AppleTV "pro" and put maybe a M1/M2 MAX chip in it. Then it would have plenty of processing and power for just about any game.
The primary problem with the concept is not so much hardware, it's MONEY. What the dedicated game consoles have and what PC gaming has that Apple gaming doesn't is a gigantic flow of cash to "sponsor" AAA game creation. This is not so much money flow at and after launch from gamers buying games but the- what might be called- "seed" money to basically buy exclusive AAA game creations for consoles and PC.
This is very visible through acquisitions of big gaming houses by who: Sony & Microsoft. They buy the big game producers, take those teams onto their payrolls and then own the releases of spectacular games for their systems.
- What was the last major gaming company that Apple acquired?
- What was the last major single AAA game that Apple purchased as an exclusive?
That's practically the sole issue with AAA gaming on Apple hardware- Apple TV or Mac. If Apple went at gaming like it's going at original video creation for AppleTV+, you would have a flow of AAA games for Macs and iOS/tvOS, etc.
Too many of us have some kind of illusion that programmers choose to code based on the power of the hardware: "if Apple built a AppleTV M1 Pro/Max/Ultra certainly the big game programmers would shift to coding for that super-powered hardware." But that's not it at all. Just like Apple,
programmers want to make as much MONEY as they can. Coding for a slice of all AppleTV owners which is a slice of all macOS owners which is a slice of all iOS owners probably doesn't make them a fraction of what they can get for coding for middling+ PC specs... and certainly not what they get for coding an exclusive sponsored by Sony or Microsoft.
This problem wouldn't even get solved by charging $100 per game, $500 per game or $1000 per game to rich gamers... unless a big volume of those gamers could be moved to buy an AppleTV "pro" and then pay much more than the same game on a PS5, XBOX or PC.
To "fix" this needs Apple to allocate a pile of cash in the vault much like they allocate a pile of cash to AppleTV+ for video. Instead, each bit of news about this "major game developer" being acquired is pretty much always Sony, Microsoft or one of the major game houses still independent but with extensive "exclusive" relationships with Sony and/or Microsoft. What news is about Apple and major game developers: ongoing legal war fighting over a portion of a commission.
Do a search for "how much does it cost to develop an AAA video game?" The answer may surprise you. But what you'll also learn is that for the money Apple spent on the Beats acquisition, they could sponsor about 60 AAA games for Apple devices. Would 60 AAA games establish Apple gaming in a big way? Seems likely. Is what they spent on Beats too much for Apple? Obviously not. Now do a search for "how much is Apple spending on AppleTV+ content" and consider the 2 numbers head-to-head.
More simply: "show us the money." Who does that now are NOT entities interested in games for AppleTV, iOS, pro/max/ultra, etc. Apple can fix this by showing programmers the money much like they are showing video producers the money now... more money than they can get from the alternatives. Apple clearly has the cash to compete here... but consistently lacks the will/interest.