Financial Times: Apple pouring a fortune into original games (video)

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FT’s Tim Bradshaw estimates the initial investment is likely to exceed half a billion dollars.


From Apple spends hundreds of millions on Arcade video game service, posted Saturday:

Apple is spending hundreds of millions of dollars to secure new video games for its forthcoming Arcade subscription service, according to several people familiar with the deals.

The substantial outlay to developers shows how seriously Apple is taking games as a new source of subscription revenues, despite the public paying more attention to its star-studded push into television and news.

It also reflects the increasing competition in Silicon Valley for exclusive rights to the best content, as the iPhone maker bids against other new games platforms from Google and Tencent, as well as the console makers Nintendo, Sony and Microsoft.

Apple Arcade was unveiled last month at an event in Cupertino, California, where Hollywood celebrities including Oprah Winfrey and Steven Spielberg touted its TV+ platform. Apple is hoping to drive new and more predictable sources of revenue from online services as sales growth wanes for the iPhone.

Some analysts predict games subscriptions could become a multibillion-dollar business for Apple within a few years. But to establish itself in the market, Apple is having to make substantial upfront investments without knowing whether Arcade will be a success.

My take: Want to see who’s spending Apple’s money, and how? Que the video: