Although teraflops (1 teraflop = one million floating point operations per second) are not the best way to rate GPU performance, it can provide a decent baseline of raw compute power. With that said, The M1 chip still only has about 25% of the compute power of a Playstation 5.
Apple M1 = ~2.60 teraflops
PS5 = 10.28 teraflops
PS4 Pro = 4.2 teraflops
XBox X = 12 teraflops
RTX 3080 = 29 teraflops
Intel integrated graphics, up until the new Xe line, have only provided about .4 teraflops of compute power, so this is a monumental leap. Even Intel's discreet GPU provides less power (2.4 teraflops) and it draws about 25 watts. The entire TDP of the M1 is 10 watts, and that includes the CPU/GPU/Memory. This is where the M1 shines: Performance per watt is simply unmatched.
Note that a LOT of other things matter here: Memory bandwidth and shader accelerators, of note, can vastly improve the performance of a card even with similar raw compute power, so these specs are not to be taken as the only assessor of performance.
As for Apple TV, it's not a big leap to say that we could see PS4 performance within two years and PS 5 performance within four. I actually think this is what drove them to release Apple Arcade before any huge third-party titles were available... Knowing that they will have the power to compete with consoles soon could make them a major player in the video game industry.
Can you imagine an Apple TV competing with PS6? It'd be interesting.