People set themselves up for disappointment when they compare Apple products to the competition based solely on the performance metrics, and expect Apple's effort to be utterly destroyed. There's room for plenty of players in the console space.
We can say games on the Apple TV will "suck," the Android offerings may be "better," that the Apple TV won't hit some FPS or polygon/shader benchmark, but these considerations are minuscule in light of the basic market realities:
- The game-and-app enabled AppleTV is ~$150 and titles will have a sale price of free to maybe $30. The supplementary products from Microsoft or Sony are $350 or more and desirable titles start at $60.
- Android has some STB products but they don't market them effectively, their gaming and app story is completely disorganized and the performance of their flagship equipment is far below that of an AppleTV.
- The largest population of video game players is middle-aged women and nobody presently addresses this market on the TV; Nintendo has tried and failed.
- The AppleTV still probably has the best dumb Internet STB implementation and has the best content agreement.