The Apple Home Entertainment system can be produced in time for the holiday season. I would speculate that the first step will be an upgrade of the existing iTV box into a full set top box with a large capacity 4Tb video server, iPad/Siri remote control and gaming features. A partnership or acquisition of Tivo would deliver agreements with some content providers and a slew of valuable patents whose worth has already been demonstrated in legal settlements, some of which are still underway with more successes predicted:
ZDnet has speculated that a Tivo agreement might even be announced at this year's WWDC.
The many useful features discussed here-in that will transform the TV and gaming market can then be introduced in a step wise fashion beyond that. I would be very surprised if Apple is not already well down this path. The more complete system, maybe one year out, will include more pay for view content and an optional state of art sound system and ultra HD display:
Additional disclosure: I bought TIVO stock and a TIVO Jan 2015 LEAP option yesterday