Consoles come with a controller and enough storage to be usable for games. The largest Apple TV 4K is 128GB and it's really common for games to easily be 50+ GB or even considerably more. 100 GB is not even that uncommon anymore (e.g., Call of Duty, FF7 Rebirth, Baldur's Gate 3).

When Apple first launched the Apple TV game store they required games be playable with the horrible remote. Understandably even games that would have been fine on the hardware didn't bother and while Apple later relented and allowed games to require a controller it's still an extra purchase that's needed.

Call of duty is kicking close to 500GB to 1TB depending what you have installed.

That said, I think the hardware is totally capable they just don't have a layer to run win32 or Linux apps natively (like proton for m series) so they'd have to commit to what valve is doing for linux, for macos