As I wrote already Apple TV 4 isn't a "threat" (yet). But things may change with Apple TV 5. My feeling is that Apple is anticipating what will be the next video games consoles generation. That thing of allowing a maximum size of 200MB for the core of the applications in a device that must be always connected by its own nature, where everything else is cached is smart. With a minimum 32GB mass storage the Apple TV can't compete with the modern consoles. It simply doesn't have the space (nor the specs) to run some (most?) AAA games.
But sure it will have its space in many living rooms. Some people may buy it out of curiosity to finally own an iOS device without selling a kidney. Others to play their iTunes music and videos. Unlike the PS4 and XB1 it won't waste dozens/hundreds of kWh just to watch movies.
About games, what looks great on a 5" screen may look like crap on the larger televisions. But it has plenty of RPGs and RPGs have never been really about graphics. Plus it has all the small idiotic but addictive games for cheap, if not for free. But it won't have Bloodborne. Or FF XV. :D
To me Apple TV and consoles can peacefully coexist today. In a couple of years it will be another story, though.
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