Apple pouring a fortune into original games — Financial Times

Sonic Racing from SEGA on Arcade.                  Apple

Sonic Racing from SEGA on Arcade. Apple

The service will launch in fall and, by the looks of it, the company is now investing heavily into making it successful: according to a report from The Financial Times, Apple is pouring in no less than several millions each in over 100 games. According to sources at the Financial Times, the budget is "likely" to exceed $500 million, and is spending a reported average of "several" million for each title that it secures, as well as granting developers temporary exclusives. The advance given by Apple to game title developers is more than enough to cover their game development cost.

The Apple Arcade subscription may not only signify the company's interest in venturing into the services industry, but it may also take back its advantage over Google Play in terms of games. Now, to fix a problem it's partially responsible for creating, Apple is launching Apple Arcade. The partnerships announced so far all come from developers with established track records in mobile gaming, many of whom have already released hit titles on the App Store.

Apple plans to release more details about Arcade, including subscription plan pricing, later this year.

The analysts are basing this on the presumption of the platform reaching 29 million subscribers paying $12.99 per month by 2024. Building a compelling cloud gaming service requires some complicated back-end work, which both Apple and Google, with its Stadia platform, are now working hard to build. 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.

Instead, users can play games with their existing laptops, desktops, TVs, tablets or phones and use their own keyboard or mouse. 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. They can download and play as many as they want across multiple Apple devices, either online or offline.

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