Apple Could Be Spending Up To $500 Million On Apple Arcade
Apple Could Be Spending Up To $500 Million On Apple Arcade
Sonic Racing from SEGA on Arcade. Apple
17 April, 2019, 12:35
The iPhone maker took the wraps off of its game subscription service, dubbed Apple Arcade, late last month at its "Show Time" event, where it also unveiled news and video subscription offerings. We already knew that Apple was investing a lot of money into persuading developers to make games for the service, and the last we heard these games were also allowed to come to PC too at the same time - but this may not be the case. While some were concerned that Apple was going to simply hand-pick its own exclusive development partners by invitation only, the company began inviting developers to apply for Apple Arcade a few days after the announcement, but the "application" process is really just an opportunity for game developers to put their titles up for Apple's consideration. This is a promise the company plans to keep with its latest investment.
For it be successful, the Apple Arcade needs to have a strong library of games. They're downloaded and installed on the device, not streamed, which means they can be played offline.
Stadia builds on Google's "Project Stream" initiative, which let users play high-quality games in Google Chrome. It's believed that Arcade will give the game developers ongoing revenue based on how much time the users spend playing the game, but the exact details are unclear at the moment.
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Meanwhile, the Apple App Store needs users to purchase specific games and find the ones that aren't clones of the popular apps.
Pricing for the new service hasn't yet been announced.
Apple Arcade launches this fall, likely bundled with the inevitable iOS 13 update. And despite the deep bench of star power that Apple has lined up for its TV service - including everyone from Oprah Winfrey to Steven Spielberg - analysts at HSBC thinkApple Arcade could end up being a bigger victor for the company, revenue-wise. The advance given by Apple to game title developers is more than enough to cover their game development cost.
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