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Apple Potentially Spending Over $500M For Arcade Subscription

17 April, 2019, 12:33 | Author: Rafael Roberts
  • Apple Arcade games

According to sources, Apple is funding dozens of titles that will be exclusive to this new platform and several of them have budgets that run to millions of dollars. Apple claimed that it would give customers "the freedom to try any game from its handpicked collection of titles that are all-you-can-play", in addition to having "no ads, ad tracking or additional purchases", all with an added emphasis on user privacy. Multiple sources told Financial Times that the majority of games planned for the service have million dollar budgets. Games on the Arcade service were announced as exclusive to Apple devices on mobile, so not on Android devices, but the report says that Apple are seeking to make those games exclusive against all platforms - at least for a few months. Apple looks to use that half a billion dollars to secure new games for the service. But to establish itself in the market, Apple is having to make substantial upfront investments without knowing whether Arcade will be a success.

First launched last month, Arcade gives users access to 100 titles from developers like Cartoon Network, LEGO, Sega, Konami and Annapurna Interactive, among others.

The iPhone maker is spending over $500 million in total.

Apple Arcade launches this fall, likely bundled with the inevitable iOS 13 update.

The report details how far the Cupertino brand is willing to go to eke out a strong lineup of games to encourage players to subscribe to Arcade. Nevertheless, analysts at HSBC think Apple stands to generate nearly $400 million in Arcade revenue next year - and nearly $3 billion ($2.7B, to be exact) by 2022. It has been pushing hard to get as many high quality and high profile games for its Arcade Service. However, the rewards of gaming could be larger than those for news and TV subscriptions.

If users see their favorite YouTuber streaming a game, they can click the "play now" button' and, within seconds, it will boot up right on their screen.



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