Apple Spending Millions of Dollars To Secure New Games for Apple Arcade

Joanna Estrada
April 15, 2019

Several sources told the Times that most of the more than 100 games planned for the service have budgets in the millions of dollars - a lot for mobile and the indie market Apple is targeting, but not extraordinary when compared against the video game industry, where seven-figure budgets or more tend to be par for the course. Add to that, there will be other perks for developers if they launch games exclusive to Apple's ecosystem.

A Financial Times report highlights that Apple is spending hundreds of millions of dollars to secure new games for its Arcade gaming subscription service.

Apple has yet to confirm how much the service will cost, but we do know the company is already working with big names like Konami, PlatinumGames, Sega, Annapurna Interactive, Gameloft, Devolver Digital to bring games to the platform. 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 think Apple Arcade could end up being a bigger victor for the company, revenue-wise. You will find a dedicated tab inside Apple's App Store, a monthly will let you access all the titles available in Apple's gaming service. Those figures are greater than its revenue estimates for Apple TV+, at $2.6bn by 2022 and $4.1bn by 2024, and Apple News+, which it predicts will generate $1.7bn and $2.7bn respectively.

Apple TV+, meanwhile, looks set to reap $2.6 billion in revenue by 2022, according to HSBC. 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.

Other reports by Click Lancashire

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