John Gruber on a possible Apple TV with games:

I think there’ll be just one model, $99 (or even less). The only upsell for gaming would be optional controllers […]

Games are just apps. There’s no more reason to make a games/no-games split with Apple TV than there is to make an apps/no-apps distinction with the iPhone.

I think the Apple TV will remain at $99 and there will be just one model. Apple will sell gaming controllers separately for $29-49 and I expect developers would be able to develop multiplayer games giving Apple the opportunity to sell multiple controllers to each Apple TV owner.

The only question that I still have is whether Apple would decide to sell a bundled version of the Apple TV that came with one controller at a reduced price (and by reduced price I mean the bundle would cost less than the combined price of one Apple TV and one game controller). I think that Apple would manage to upsell a lot more buyers this way, but I don’t think they would like to introduce the frustration that would occur when a buyer of an unbundled Apple TV comes back in the store to purchase a controller.

Why should someone who decides they want to play games later on be “punished” by having to pay a higher price than someone who knew they wanted gaming at the initial purchase?