Apple has been able to make a killer game console or handheld for a while but they just don't seem to care.
All they really have to do is change the marketing around the Apple TV, put a controller in the box, and start courting developers to port their switch games...
They have done this, albeit half-assed. The AppleTV (and iOS) readily support a bunch of Bluetooth controllers. They tried to get studios to make games for the AppleTV but they mostly just got iPhone/iPad ports.
There's a couple big problems with the AppleTV. The first is poor tooling for graphics and audio development. The underlying frameworks are powerful as is the hardware but it's difficult to debug them or access them at a low level. It's hard to just get an accurate accounting of the timing of draw calls and GPU load on iOS and macOS. The tooling for DirectX is way more powerful.
The AppleTV hardware is also shit. They've always shipped with old Apple Silicon SoCs. So if you've got a game that screams on the latest iPad or iPhone it runs like shit on the AppleTV or you've got to scale back the visuals. Even when a developer manages to make an awesome game for iOS it ends up sucking on AppleTV.
Then there's the tiny amounts of storage. Even the average Nintendo Switch game would find the AppleTV's storage anemic to say nothing of the PS5 or Xbox.
Apple has never courted AAA game development. I don't think any of Apple's C-suite appreciates games. They trot out game developers to do slick demos at one of their events (doting on them in the run up) and then go back to largely ignoring them. The various game adjacent technologies/frameworks are almost always bottom-up initiatives from development teams trying to come up with a new shiny thing for the next OS release.
Not since Jobs returned, anyways. Before that, Bungie was a darling for Apple and they even made the Pippin, which was a games console.
But I would agree Bungie was a AAA studio though in spite of Apple rather than because of anything in particular Apple did. They treated Bungie and their games as a thing to provide a demo but never really anything to actively support or encourage.