The tech giant is also working on a new controller for the upcoming set-top box which would be an updated Siri Remote or a new, Apple-designed game controller.
All the new updates are exclusively designed to support upcoming games on Apple Arcade, the company's gaming service. The company is working with developers to build console-level games to boost the gaming service, reports MacRumors.
Signs of a new Apple TV with an A12 bionic chip were uncovered in the iOS 13.4 beta in February. In addition to an updated processor and a "T1125" codename, previous rumours have indicated that the refreshed Apple TV may feature higher capacity 64 and 128GB storage options.
In May, another leaker Jon Prosser corroborated the report and said that the aforementioned model of the Apple TV box was ready to ship.
Apple launched its A14 Bionic chip alongside the redesigned iPad Air at its September "Time Flies" event, and new benchmarks indicate that the chip offers significant performance improvements over the previous A13 Bionic.