Apple spending $500 mn over 'Arcade' gaming service

Sonic Racing from SEGA on Arcade.                  Apple

Sonic Racing from SEGA on Arcade. Apple

The tech giant unveiled Apple Arcade, a gaming subscription service which is set to feature more than 100 new and exclusive games, last month.

Apple is willing to spend "hundreds of millions" of dollars to fill out its Apple Arcade premium game subscription service with quality titles. In fact, as gamers become more worn out 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.

These games are made using much smaller teams and it looks as though Apple has brought on board some established talent to handle the task.

Apple recently announced plans for a subscription-based games service, Apple Arcade, which will offer games across iPhones, iPads, Macs and Apple TVs for a single monthly fee - with no advertising or in-app purchases. During the announcement of its new service, Apple also promised it would release over 100 exclusive titles on Apple Arcade. The FT's report goes on to note that Apple has likely already exceeded the $1 billion it's believed to have spent so far on Apple TV+, which of course dwarfs the numbers being talked about here for Apple Arcade.

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HSBC analysts anticipate that the firm could count 29 million Arcade users in 2024, who would be paying subscription cost of $12.99 per month.

Stadia builds on Google's "Project Stream" initiative, which let users play high-quality games in Google Chrome. Each game will sync between devices to allow players to pick-up where they left off.

The service, which was announced at the Apple event in March, is launching sometime between September and November this year.

Although Apple Arcade is a bit of a moonshot on Apple's part, many industry analysts have been predicting that subscriptions are the future of mobile gaming.

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