Apple spending $500 mn over ‘Arcade’ gaming service

Ruben Fields
April 17, 2019

According to the report Apple is spending "several" million dollars per game, and is offering developers perks and bonuses if the games end up being temporary exclusives, away from Google's Play or console services like Game Pass. More interesting however is that Apple is not preventing these developers from releasing their games on platforms such as the PC, PlayStation 4, Xbox One, or Nintendo Switch.

As reported by the Financial Times, which claims to have spoken with multiple sources familiar with the matter, the iPhone maker will "likely" splash out over $500 million to create a tantalizing portfolio of top-notch mobile games.

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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Apple isn't the only tech giant with a game subscription service as big names like Microsoft, Google and Nvidia are all lining up for a piece of the ever-growing $140-billion gaming market. This uses a subscription model which grants users access to hundreds of gaming titles. The Financial Times' also added Apple has possibly surpassed the $1 billion it's believed to have spent so far on Apple TV+, which of course dwarfs the numbers being gossiped about here for Apple Arcade. Arcade is all set to launch in this year's fall.

The analysts are basing this on the presumption of the platform reaching 29 million subscribers paying $12.99 per month by 2024. They're downloaded and installed on the device, not streamed, which means they can be played offline.

Though the price for the monthly Arcade gaming service is not revealed yet, it is expected the rollout in this year autumn. 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.

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