Apple invests more than $500m in new gaming service

17 April, 2019, 12:33 | Author: Sammy Rose
  • Sonic Racing from SEGA on Arcade.                  Apple

With extreme competition from gaming heavyweights Nintendo, Microsoft, and Tencent, as well as Google, Apple is spending hundreds of millions of dollars securing exclusive games for Arcade, the Financial Times reports. While games such as the anticipated Beyond a Steel Sky will be allowed to go to PC and consoles, there will have "a few months of exclusivity" on Apple's service first. Despite this investment Apple will also invest in many other brands like Konami, Disney, Sega, and some smaller shops like ustwo (which developed Monument Valley), to be part of this gaming venture.

While Apple has commented on the financial Times report, if it's accurate then Apple is putting aside half a billion dollars to make Apple Arcade a success.

At the launch of the service last month, where Apple also showed off its much-hyped TV+ service, the company confirmed that Arcade will be integrated into the App Store and won't feature any advertisements or in-app purchases.

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When Will Apple Arcade Launch? Apparently, Apple is incentivizing developers by actually spending money on some of the games set to release with the service.

Aside from large companies and indie developers, experienced video game developer veterans like Mistwalker Corporation are also planning to enter this platform. A single subscription will let someone access more than 100 new and exclusive titles.

This subscription-based gaming service will look to compete directly with Google who recently unveiled their own gaming service Stadia which looks to bring 4K-streaming to the gaming experiences of their subscribers. HSBC analysts assumed Apple is looking forward to make more or less $400 million in Arcade revenue in 2020 and from $2.7B to $3 billion, by 2022. Apple has made it clear that it plans to not merely curate games for Apple Arcade, but actually actively participate in their development. They can download and play as many as they want across multiple Apple devices, either online or offline.

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