The current Apple TV contains the same cpu and graphics chip, and amount of memory as the iPad[1]
Given that the iPad has decent games performance at 1024x768, I could see the Apple TV handling most iPad games at 720p, or running them at a lower resolution and upscaling (as the consoles do with many games, for example Halo 3/ODST[2] and GTA IV[3]).
Given that the iPad has decent games performance at 1024x768, I could see the Apple TV handling most iPad games at 720p, or running them at a lower resolution and upscaling (as the consoles do with many games, for example Halo 3/ODST[2] and GTA IV[3]).
[1] http://en.wikipedia.org/wiki/Apple_TV#Technical_specificatio...
[2] http://en.wikipedia.org/wiki/Halo_3#Graphics
[3] http://www.ripten.com/2008/04/29/confirmed-gta-iv-ps3-is-not...