According to the British "Financial Times" report, Apple is investing a lot of money for the upcoming Apple Arcade game subscription service, in order to ensure that Apple Arcade can have more than 100 games in the same period, the investment is more than 500 million US dollars.
According to the new report, part of Apple's strategy is to provide developers with sufficient funds that will outpace the development costs of typical indie games. Disney, Konami, Sega and other brands, as well as small and medium independent studios that perform well in the Apple App Store, such as ustwo (Monument Valley Developer), are reported to have joined Apple Arcade.
Currently known games to join Apple Arcade include some well-known brands or IP, such as Sega's Sonic, Cartoon Network, LEGO, and new games from independent developers such as Annapurna Interactive and Bossa Studios. Most of the selected games have achieved good results on the App Store. According to informed sources, Apple's advance payment is enough to support independent developers to make quality games.
These well-known IP masterpieces, new tours and indie games will form the Apple Arcade game library, which analysts believe can even be a multi-billion dollar service platform in just a few years.
Of course, compared to Apple's $1 billion in Apple TV+ so far, Apple Arcade is only half the investment. But HSBC analysts believe that by next year, Arcade will bring nearly $400 million in revenue to Apple, and by 2022 its revenue will be close to $3 billion (exactly $2.7 billion), while Apple TV+ Revenue for 2020 is estimated at $2.6 billion.
The game content market is more popular than the TV content market, and Apple has a dominant position in mobile game distribution, and TV+ needs to face competition from all sides. Therefore, investors are generally optimistic that Apple Arcade's future revenue potential is greater than Apple TV+.
With the sales of hardware products not as good as in the past, Apple is naturally under pressure to maintain its performance growth, so recently there is no shortage of news that they want to move to more different fields. Apple Arcade may be just part of Apple's new service plan in the gaming arena. It is said that Apple has discussed with developers in the past few months and is interested in the commercial game distribution field like Sony, Nintendo, Microsoft, EA and other game giants.