The huge spending shows that despite increased public attention to Apple's star-studded television and news business, Apple has high hopes for gaming-generated subscription revenue.
In addition, Apple also announced the launch of the Apple TV original video service. Hollywood celebrities, including Oprah Winfrey (Oprah Winfrey) and Steven Spielberg (Steven Spielberg), are promoting the company's Apple TV platform.
As iPhone sales growth slows, Apple hopes to bring new and more predictable revenue sources through online services. Some analysts predict that within a few years, game subscription services could become Apple's multi-billion dollar business. But in order to gain a foothold in the market, Apple had to make a lot of upfront investment without knowing if Arcade could succeed.
Several people involved in the development of the project said that of the more than 100 games that have been selected for release on Arcade, Apple will spend millions of dollars on most games, with a total budget of more than $500 million. Most of the selected games have been successful in the iPhone app store before.
If developers agree that their games will be released only on the Arcade platform and not on Google's Android smartphone app store, Google Play, Apple will offer them additional rewards.
But after months of exclusive licensing, developers will be free to release their games on the (PC) or other consoles, such as Nintendo's Switch or Sony's PlayStation..
However, as games become the most profitable part of the entertainment business, Arcade may exceed TV+ in the next few years.
Apple has yet to say how much it will charge subscribers to the Arcade or TV, but analysts at HSBC estimate that Apple's Arcade revenues will grow from $370 million in 2020 to $2.7 billion in 2022 and $4.5 billion in 2024. HSBC forecasts that Arcade will have 29 million users who pay $12.99 a month.
These figures are higher than Apple's revenue expectations for Apple TV + and Apple News +. The company expects Apple TV+ to generate $2.6 billion in revenue by 2022 and $4.1 billion in revenue by 2024; Apple News+ expects to generate $1.7 billion in revenue by 2022, which will be generated by 2024. $2.7 billion in revenue.
In addition to boosting its service business, Apple's main ambition is to win back the advantages of the game through its Arcade game subscription service. (Little Fox)