We've reiterated quite often that the new Apple TV announced in the company's recent San Francisco press release will not be a contender for console gaming and will instead, cater to casual gaming. Yes, the device has a lot of potential and it may start out like a Wii device that could evolve into something else. But there are a lot of factors that Apple has to overcome in order to compete with Microsoft and Sony in the never-ending console wars.

Availability of Titles

So far, Apple only has a couple of titles that are even compatible with the new Apple TV. Racing games and some odd titles fit the bill, all of them are casual games. In order for Apple to compete with the giants, it would have to allow other software gaming companies to port to their system and possibly open their programming to said companies; a practice Apple is never known for.

It also may altogether say no to the idea of any other form of installation apart from the online store format they currently use. This may be a deal breaker for some games that go well beyond the 20 GB requirement as DVD installations are a far quicker option for installation.

Apple is also known for trying to do everything on its own. It's possible that they would only allow games that were developed in-house.

Change in format and Backwards Compatibility

In its current state, the Apple TV operates similarly to the Nintendo Wii. In order to properly compete, it would have to shed that format and operate on similar terms as Sony and Microsoft or innovate and create a niche for itself. If Apple hopes to dethrone anyone, it may have to make considerable breakthroughs in VR gaming.

Apart from all that, Apple needs to be open to the concept of backwards compatibility. Until recently, every new iOS that comes out virtually makes older units obsolete. Gaming consoles may not be as expensive as the latest iPhone, but there aren't as many payment options.

Apple has a lot of barriers to break down in order to be considered a contender. Most of the changes it has to make contradict with the very core of how they operate as a company. Apple is in a very good position to take over everything; they have the market, the technology and they have funding. How they choose to evolve the Apple TV would be an interesting story to follow.