Yep! Some more details, many of which kill it:

The Apple TV chip is currently quite old. It would be fine for much indie stuff or streaming but pales against a modern phone/iPad.

Have to buy games from the App Store meaning limited selection. Few bother because no one plays games on Apple TV. And since it’s the same as the iPhone app it’s often optimized for that even if the Apple TV was more powerful.

The other big Apple sin is Apple tried a push but (at the time, later changed) demanded games worked with the Apple TV remote only. At least for Apple Arcade. They “had to” because they’ve never sold a gamepad. Only 3rd party ones which weren’t very good.

So you have to buy games from Apple that are either super simplistic (to work well on phone) or advanced but old (RE VII), play on an old chip, on a TV while it was probably designed for a phone, and pay $70+ to Nintendo/Sony/MS to buy a good quality game pad.

Surprise. It never went anywhere.

There was a rumor that they’re going to try again with a first-party controller. If they’re smart they will just white label one from a good company. And they should absolutely push cloud gaming with PS/MS. Steam Link is a good idea.

A new Apple TH is rumored any day now (and has been for a long time) but between the high original cost, the insane cost increases due to RAM/storage, and the price of buying a controller, it just doesn’t seem worth it. Buy a Series S or Switch 1/2 and be happier.