The last time Apple released a TV was in 2016. The company's updated TV has been long-awaited by consumers and long overdue compared to its competitors. Amazon, Google, and Roku among other traditional TV makers have been actively growing their offerings and features.
The concept of an Apple TV with a camera and speaker is compelling. This would allow FaceTime calls to be conducted on a larger screen.
Nothing is confirmed with the project and could still be discontinued if the market for the product doesn't make sense.
However, Apple is expected to announce a new Apple TV with minor improvements later in 2021.