Apple Doubtlessly Spending Over $500M For Arcade Subscription

Is Apple doing the right thing by spending millions on new games for Arcade

Is Apple doing the right thing by spending millions on new games for Arcade

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.

Apple is understood to be spending hundreds of millions of dollars to acquire titles for its Arcade video game streaming service. In fact, as gamers become more tired by the inordinate advertising and demands for in-app purchases, Apple is uniquely positioned to offer a breath of fresh air in the form of quality games that make no financial demands on users other than a flat monthly subscription fee for the service as a whole. The advance given by Apple to game title developers is more than enough to cover their game development cost. Apple is offering additional incentives for developers if their game remains exclusive to the service. This budget is lower compared to Apple's investment on the TV+ subscription which reached $1 billion.

Some analysts predict games subscriptions could become a multibillion-dollar business for Apple within a few years. The full Apple Arcade launch lineup will represent the first true test, but as of now it certainly looks like Apple has a victor on its hands. A single subscription will let someone access more than 100 new and exclusive titles.

It's a subscription service coming to Apple's devices later this year that promises to offer premium gaming experiences. 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. If all of that holds true, it may be a result of passivity vs. activity - with TV shows, of course, you watch to unwind, while gaming is a much more active, less passive, endeavor.

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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