According to the recent leaks, it looks like there might be a cheaper ATV coming soon.
Max Tech thinks that there will be two ATVs, a cheaper and lower powered model to replace the ATV HD, and a higher end model to replace the current ATV4K2.
The cheaper one, keeping the A12, will be USB powered, and will not come with a remote. Max Tech think it will be priced @ $80.
The high end one, maybe with a M1 and bundled with a controller.
I personally wouldn't want an ATV without a remote, and having to using your phone. That was my biggest complaint about the original Chrome Cast. I know, you could most likely buy a Siri Remote, but the new Siri Remote is very expensive for what it does.
I definitely feel like Apple had a 'build it and they will come' mentality to gaming on this device but when the floodgates didn't open up in 2015 with the launch of the AppleTV 4 they've basically given up.
I agree, except I wouldn't say they gave up with the ATV4, but probably after the ATV4K1.
The problem with gaming on the ATV4 was that the A8 was underpowered compared to the rumors (Xbox 360 quality graphics) leading up to the announcement, and more so, Apple's limitations on tvOS apps, such as the tiny static storage size of 200MB and the Siri Remote requirement.
These things killed a lot of the momentum for gaming development for the tvOS.
Apple later walked back all of the things I listed, increasing the static storage size to 4GB, and allowing controller-required apps. Then later on, Apple released the ATV4K, with the A10X and its killer GPU, way overpowered to be used for just a streaming device.
But sadly, it appears the damage has been done, the few developers that gave tvOS a try, and now leaving it behind.
I have mentioned several times over the past two year on the forum that gaming developers are abandoning or pulling their tvOS version of apps, while continuing to support their iOS, iPadOS, and MacOS version of their games.
Who can blame them since Apple doesn't seem to care about it.
Maybe Apple could turn it around, but if they don't have developers on board, it wouldn't matter. Apple could have the best gaming device in the world, but no one would get it if there was no games for it.