Apple spending USD 500 mn over Arcade gaming service

Apple Arcade games

Apple Arcade games

The news suggests all the games in the Arcade subscription will be added as a dedicated tab on the App Store, which will be exclusive to the service. Big industry names such as Cartoon Network, LEGO, Konami and Sega are some of the few which plan to release games on this new platform. But this is based on an estimated monthly subscription fee of $12.99, though Apple has not said how much the service will cost. Multiple sources told Financial Times that the majority of games planned for the service have million dollar budgets.

According to analysts at HSBC, Apple Arcade subscription could bring in more revenue for the company than Apple TV+ streaming video service. With Apple Arcade, the company seems to be trying to change that perception.

Sources familiar with the matter told the FT that many high-profile games selected by Apple have budgets in the "millions".

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.

The release of Apple Arcade comes as Google unveiled "Stadia, ' a service that lets users 'play, watch and build" games on any device.

Of course, both Sony and Microsoft also have competing subscription services in PlayStation Now and Xbox Game Pass. People aren't willing to pay good money for mobile games when there about a million free-to-play games available. Nevertheless, analysts at HSBC think Apple stands to generate nearly $400 million in Arcade revenue next year - and nearly $3 billion ($2.7B, to be exact) by 2022. All games on Apple Arcade are handpicked by the company and the option to play and access these will be limited to the company's devices. An estimate by HSBC foresees Apple's gaming service becoming larger than the TV+ service by 2022, and becoming a $4.5 billion business by 2024.