Apple needs to make Apple TV that can run AAA games, challenge Xbox and Playstation

Apple needs a gaming boost for its devices. Until now, its devices might not have been powerful enough for AAA games. Now they are, and Apple might do well to create a new Apple TV that can challenge Xbox and PlayStation in gaming.
Technology journalists who closely monitor Apple know one thing with certainty every time they cover the company’s call analysts after its quarterly results. They know that Gene Munster, an analyst, would ask Apple when the company is releasing its television. Munster has done that for years, quarter after quarter. But so far no television from Apple has appeared. Now, there are reports again that an Apple TV—the actual big-screen television and not the streaming box that Apple already sells—is in work again. We may see an Apple television come out of the company’s labs and factories in a few months or, more likely, in a few years. However, it should create a different Apple TV than a television.
A different Apple TV that is more than a streaming box is now such low-hanging fruit that it would be almost sacrilege for Apple not to develop it. Apple has all the ingredients to create an Apple TV that is both a streaming box and a gaming console, similar to the Microsoft Xbox and Sony PlayStation.
Look at it from this angle: A device like the Xbox Series X or the PlayStation 5 Pro has three essential components: the chipset that allows these consoles to run games, the gaming ecosystem and the availability of desired games, and the willingness of people to buy them. I believe Apple already has two of these components.
In terms of hardware, Apple is already at the latest Xbox and Playstation levels. The Xbox Series X has a chip made by AMD. It has a performance of around 12 Tflops. The PlayStation 5 Pro, a slightly beefed-up variant of PS5, also has a chip made by AMD, which performs at around 16 Tflops. These numbers align with what the M4 Pro and the M4 Max, the latest Apple chips, can offer through their graphics units. The numbers for Apple chips range from 8 Tflops to 17 Tflops depending on the variant, but it is safe to say that if Apple wants to have a chip that is equivalent to the chips in the PS5 Pro and Xbox Series X, it can do so tomorrow just by tuning and binning one of the M4s.
Apple has significantly faster chips. The Ultra variant of the M3 has a graphics core that is already over 20 Tflops. Some variants of the M4 Ultra, released in 2025, will likely be close to 30 Tflops, offering almost double the horsepower that PlayStation or Xbox can manage.
An incredible list of AAA games—think the latest Call of Duty—will make Apple computers even more attractive than they are. And an Apple TV with a robust graphics chip might entice more game developers to come to Apple camp and create games for it.
In a way—but not entirely because I think matters of business, Apple’s cut in purchase and the entire cost-benefit ratio are also there—the lack of AAA games on Apple platforms could be a chicken and egg problem for game developers. What comes first? Games or the devices that can play them? Previously, Apple didn’t have chipsets that could be used for serious gaming, and while it could always use a graphics chip by AMD or Nvidia to make its platform more gaming-friendly, probably the math never worked out. Now, however, Apple has an opportunity to do so.
In my drawing room, under the TV, I would love a device that can be a do-it-all box. Apple, I believe, has an opportunity to create one such box. The company can potentially call it Apple TV Pro. The price will increase because such a box would need a bigger chip and associated gaming hardware, such as more storage. But if it competes with the Xbox Series X or PlayStation 5 Pro, which are priced above Rs 50,000, I am not sure if consumers would mind a reasonable hike in price.



