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Witchy Woman

by M.G. Siegler


Apple Spends Hundreds of Millions on Arcade

Tim Bradshaw:

Several people involved in the project’s development say Apple is spending several million dollars each on most of the more than 100 games that have been selected to launch on Arcade, with its total budget likely to exceed $500m. The games service is expected to launch later this year.
That compares with the $1bn that Apple was said in 2017 to have budgeted for original content for TV+, though analysts believe that its video spending has already exceeded that level.
Apple is offering developers an extra incentive if they agree for their game to only be available on Arcade, withholding their release on Google’s Play app store for Android smartphones or other subscription gaming bundles such as Microsoft’s Xbox game pass. But after a few months of exclusivity, developers will be free to release their games on PCs or other games consoles such as Nintendo’s Switch or Sony’s PlayStation.

If true, that's a massive commitment -- on both sides. And:

Apple has not said how much it will charge subscribers for Arcade or TV+, but analysts at HSBC have estimated that Apple Arcade revenues will grow from $370m in 2020 to $2.7bn by 2022 and $4.5bn by 2024, by which time HSBC predicts it will have 29m users paying $12.99 each month. Those figures are greater than its revenue estimates for Apple TV+, at $2.6bn by 2022 and $4.1bn by 2024, and Apple News+, which it predicts will generate $1.7bn and $2.7bn respectively.

The projections are silly but the price point is interesting to think about -- Apple, of course, did not give a price during the preview event. I bet Apple could get away with charging even more.

And certainly if Nintendo is in the mix, in some way.


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