Published: Wed, April 17, 2019
Industry | By Dora Warner

Apple invests more than $500m in new gaming service

Apple invests more than $500m in new gaming service

Apple Arcade will be a subscription based service that houses high quality games, which are often outshone on the traditional App Store by free-to-play titles.

The developers may release the same game on other gaming consoles such as Sony PlayStation and Nintendo Switch a few months later.

The Financial Times report that Apple up-front investment in gaming venture could become a multibillion dollar service for the company within few years.

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The company is also offering developers extra incentives if they keep their game exclusive to Arcade and don't release it on any other platform like Google Play or Xbox Game Pass.

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. Which still doesn't have a launch date other than the understanding that it's coming later this year, but it seems that the iPhone maker has made a decision to spend several hundred million dollars on more than 100 games, for a total spend of more than $500 million on this offering that users will pay a monthly fee for. This uses a subscription model which grants users access to hundreds of gaming titles.

If Apple has set aside roughly $500 million for Arcade, that's half the $1 billion budget it previously established for original content production.

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There is no firm launch dates for the Arcade yet, but it will launch sometime in Fall 2019.

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. They can download and play as many as they want across multiple Apple devices, either online or offline.

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

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