It's interesting that we haven't seen any major triple-A games shown off as part of today's on-stage demos of third-party applications for the new Apple TV.
Now it's clear why: the existing multi-gigabyte iPhone and iPad games such as the Infinity Blade trilogy, Asphalt 8 and many more must be refactored to fit the inexplicable 200MB limit for an Apple TV app.
This means that assets like new levels and worlds will be retrieved on demand from the App Store, indicating Apple is positioning its new box as a casual gaming device for your living room rather than a full-on gaming console.