Sources say Apple is spending hundreds of millions of dollars, and may exceed half a billion dollars in total funding, for its upcoming Arcade game subscription service, the Financial Times reported this weekend.
While most of the focus right now is on Apple's TV and news services, the substantial amount of money Apple is giving to developers shows how serious it is about making video games a new source of subscription revenues, the Financial Times said.
The Apple Arcade games will not be available on the Google Play Store or the App Store, and, while the developers will be allowed to launch their games on game consoles like PlayStation, Xbox or Nintendo Switch, Android is out of the question. This is a promise the company plans to keep with its latest investment.
Apple Arcade will roll out in more than 150 countries later this year. The exclusivity will only be for a few months though and after that, they will be free to release their games on any platform they want.
The report details how far the Cupertino brand is willing to go to eke out a strong lineup of games to encourage players to subscribe to Arcade.
Additionally, Apple Arcade games will not be offered on the App Store as normal downloads.
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. 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. A single subscription will let someone access more than 100 new and exclusive titles. The company is yet to reveal the price for the monthly Arcade gaming service, which is expected roll out in the fall of 2019.
Apple Arcade without any confirmation date for unveiling is still considered as victor despite the fact that its full launch lineup will reveal is true face when undergo the first true test.