Looks like they're getting serious about the Arcade service with new hardware to back it up along with "Breath of the Wild"-tier titles for it. Guess we'll see. IMO Arcade hasn't been very compelling so far, mostly just iOS/mobile games.
Their last console effort was the Pippin, a miserable failure. Could this be a new chapter? I really don't have faith in them to pull this off lol even with their billions.
Here's more perspective from MR:
Fudge mentions that Apple is working with developers to bring console-level games to Apple Arcade as means of bolstering the gaming service. Notably, the tweet points out that some games would only be able to be run on the A13 Bionic chip or later, so an upgraded Apple TV would be necessary to access the new Apple Arcade additions.
A13 bionic is what's in the 2019 iphones IIRC. I think it's currently the fastest mobile chip in the world.