Apple is reportedly working on the next iteration of its Apple TV due out in the first half of 2014 with integrated App Store featuring native games.

An Apple iTv has been rumored about for a long time. The successor to the current Apple TV is said to be a set-top box with added fun and games, instead of a fully fledged TV and is likely to hit the market in the first half of 2014, sources familiar with the progress of Apple iTV, told 9to5Mac. The next-generation Apple TV is rumored to feature a redesigned OS, which may be identical to the one on iOS7 devices. More importantly, the TV box is set to feature a dedicated App Store or a "Game Store."

Apple has not made significant changes to its current Apple TV since 2011, when the second generation of the device was released. Since Apple TV competes with the likes of Roku, Google Chromecast, it is highly important that it builds some new excitement around it. Adding native games or an exclusive "Game Store" would be a good start. The current models of Apple TV STBs do not feature an official App Store, but depend on the pre-installed apps and stream iOS content via AirPlay on mobile devices.

According to iLounge's sources, Apple TV will get an update that adds games natively by March. In fact, the company developers are reportedly working on Bluetooth controllers compatible with the upcoming Apple STB. This would juice up the game play experience for users without having to depend on other iOS devices.  

If the tech giant does release a new Apple TV with rumored features, updated hardware and software, chances are that the customers will lineup to grab one. Even without the controller, the Apple TV may have a chance to take a hit on Roku 3 and Chromecast.