So I just got a 4K TV and I never really looked until now...this thing doesn't do 4K?
Of course it doesn't, New Apple TV 2 will!
What would power a 4K Apple TV? And how much would it cost? As I said to someone else:
Depends, how you look at it. If it was just a media streamer - yes they could've gone 4K. But with the gaming aspect I guess it becomes a bit woollier.
Even the PS4 and Xbox One - dedicated gaming machines with a much higher cost - don't do 1080p at 60FPS all the time (not even 4K - just 1080p):
http://uk.ign.com/wikis/xbox-one/PS4_vs._Xbox_One_Native_Resolutions_and_Framerates
The new "4K" Fire TV doesn't bring all the benefits of 4K for even media playback:
"Despite being introduced as a home entertainment tool with some excellent killer specs like a powerful new processor, support for streaming 4K content and even an Alexa personal assistant software inclusion, the Fire TV apparently won’t support high dynamic range! Even worse, the box doesn’t even support transfer of 4K ultra HD at 60Hz.
The reason for both of these major holes in the design of the Fire TV is a simple one: a more detailed look at the boxes specs reveals that Amazon decided to give their new device
HDMI ports with the old 1.4 standard instead of the new 2.0 version or the 2.0a standard necessary for 4K UHD + HDR encoding."
http://4k.com/news/amazon-fire-4k-tv-box-doesnt-support-hdr-or-hdmi-2-9836/
I think the 'handicapping' of 4th Gen Apple TV was to keep a fluid, lag free experience across games, movies and the UI. I hope once the next version is released it has the SoC (similar to iPad Pro?) to do it all in 'full' 4K.
Then there's the fact that so few people have 4K TVs and there is so little 4K available to view right now.
Reminds me of Jailbreak tweaks and Android features. I usually get features first on them devices, but that doesn't mean it is well implemented.