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Apple Arcade is the first gaming subscription for mobile and desktop. Users get access to a select number of paid games in the AppStore. According to a new report, Apple is set to invest over half a billion US dollars.
Initially, the library will contain around 100 games - participating developers include Sega, Devolver, Disney and more. Apple supports the development and works with the developers. To ensure a smooth launch in the fall, the Cupertino-based company is sparing no expense or effort. According to a new report in the Financial Times, Apple has already invested over 500 million US dollars in completing the service. Speculation is that total spending will rise by the fall. Apple is offering publishers additional incentives if they make their titles available exclusively for Apple Arcade - according to the report. Some of these premium games could only be available exclusively on Apple's new service for a certain period of time - after that, a release on other platforms would be possible. The strategy is also set to continue after the launch of Apple Arcade, as Apple has promised that the platform will regularly offer new and exclusive games.
analyst assessment
Analysts at HSBC predict Apple will generate $370 million in revenue from Arcade by 2020. The figure is expected to rise to $2.7 billion by 2022 and $4.5 billion by 2024. HSBC believes Arcade has higher profit potential than Apple TV+, which is expected to generate $2.6 billion in revenue by 2022 and about $4.1 billion by 2024. Apple's newly launched news and magazine subscription, Apple News+, is expected to generate $1.7 billion and $2.7 billion in 2022 and 2024, respectively.
Price and Availability
Whether iPhone, iPad, Mac or Apple TV - participating games should not have any advertising or in-app purchases. The game status should be saved in the iCloud and synchronized with other devices - thus ensuring a seamless transition. Apple Arcade is set to launch this fall in over 150 countries. The monthly fee has not yet been commented on.
