Apple Arcade gaming service could cost company over $500 million

Apple Arcade games

Apple Arcade games

According to reports, Apple is apparently spending millions of dollars securing exclusive games for the Apple Arcade subscription service - possibly as much as US$500 million, or even higher.

Apple is also reportedly offering developers extra incentives if they agree to make their games temporarily exclusive to Arcade. 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. And despite the deep bench of star power that Apple has lined up for its TV service - including everyone from Oprah Winfrey to Steven Spielberg - analysts at HSBC think Apple Arcade could end up being a bigger victor for the company, revenue-wise.

While the company's plans to move into streaming television and films (as well as news partnerships) have drawn the lion's share of coverage, that tally would be a massive investment, covering half of Apple's reported streaming budget of $1 billion. Some developers are also signing on for lucrative deals with the company to keep their games exclusive to iOS for a period of at least "a few months", meaning the titles would not initially be available on alternate platforms like Android or the Xbox and PlayStation game stores, the paper wrote.

BTS Fans Left Hypnotised as K-Pop Boy Band Makes SNL Debut
The band released the official video for Boy With Luv on Friday, and it's already had more than 109 million views. BTS is expected to hit the road for their worldwide " Love Yourself: Speak Yourself" tour on 3 May.

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.

Apple TV+, meanwhile, looks set to reap $2.6 billion in revenue by 2022, according to HSBC. 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. The full Apple Arcade launch lineup will represent the first true test, but as of now it certainly looks like Apple has a victor on its hands.

Recommended News

  • OnePlus 7 details may be officially revealed on April 17

    OnePlus 7 details may be officially revealed on April 17

    In the photography hardware, OnePlus 7 is said to boast triple camera - 48MP + 20MP + 5MP and a 16MP pop-up front snapper. He also spoke about building office products for the cloud-connected era, combined with advancements in 5G and AI.
    South Africa Blitzboks win Singapore Sevens

    South Africa Blitzboks win Singapore Sevens

    The series will next head to London (May 25-26) before the finale in Paris (June 1-2). But the Africans hit back with 20 unanswered second half points to claim the final.
    Microsoft reveals that hackers had access to some Outlook email accounts

    Microsoft reveals that hackers had access to some Outlook email accounts

    However, what the hackers could not access were the users' emails or the attached content within those emails. Some reports suggest Microsoft's email, ironically, is ending up in spam folders for some users.
  • Extinction Rebellion: Environmental protests halt traffic

    Extinction Rebellion: Environmental protests halt traffic

    A spokesman urged travellers to allow extra journey time as road closures and disruptions to the travel network were expected. Roadblocks will continue night and day at each site and the demonstrators say the protests could last at least five days.
    Family's plea for New Zealand nurse held by Isis

    Family's plea for New Zealand nurse held by Isis

    It's been revealed Louisa Akavi, who was taken by Isis had her identity hidden in fear she would be killed by her captors. Ms Akavi's ordeal has been kept secret for years, including by 1 NEWS, because of concerns for her safety.
    Top 5 Best Xbox Spring Sale 2019 Deals to Jump on ASAP

    Top 5 Best Xbox Spring Sale 2019 Deals to Jump on ASAP

    These offers even extend to Game Pass subscriptions, Xbox Live Gold, consoles, and controllers, so there's plenty to see here. If you own an Xbox One or Xbox 360 then you'll likely want to check out the spring sale that Microsoft has just launched.
  • Oil rig workers rescue dog 137 miles off coast of Thailand

    Oil rig workers rescue dog 137 miles off coast of Thailand

    A dog that was castaway in the ocean has been brought to safety after a miraculous rescue by Thai oil workers. Payalaw said that he plans to adopt Boonrod if no one claims ownership of her, the Bangkok Post reported .
    God Of War Celebrates Anniversary With Free Stuff

    God Of War Celebrates Anniversary With Free Stuff

    As a special anniversary gift to God of War fans, Sony is giving PS4 owners an wonderful new dynamic theme for free. Additionally, starting Wednesday 17th April, players can also download a free set of PS4 avatars, seen above.
    Crowds flock to hear Pope launch Holy Week

    Crowds flock to hear Pope launch Holy Week

    The scandals have engulfed even bishops and cardinals and shaken the trust of the countless rank-and-file faithful in the church. Worshippers carried palm fronds and olive branches and marched from the top of the Mount of Olives to the Old City of Jerusalem.
  • Disney stock soars after release of streaming service

    Disney stock soars after release of streaming service

    Check out The Cheat Sheet on Facebook! However, some of these films will still be available on Netflix through 2020. Disney also picked up FX Networks and doubled its ownership in Hulu to a controlling 60% stake through the deal.
    Rahul, Karthik make the cut, Rayudu, Pant left out

    Rahul, Karthik make the cut, Rayudu, Pant left out

    Naturally, Prasad had to field the maximum questions on Pant's omission and the explanation was Tamil Nadu stumper's experience. The pace trio of Mohammed Shami , Bhuvneshwar Kumar and Jasprit Bumrah have also been included in the squad.

    What is the strongest message from the Finnish election result? | GME

    A strong result for the Finns Party could bolster a nationalist bloc threatening to shake up European Union policy-making. But after declaring victory on Sunday, Rinne did not rule out a collaboration, saying he "has questions" for the party.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.