Analysts Report Apple’s Games Subscription Service Will Spend Over Half a Billion
Analysts from Financial Times reported that Apple may end up spending over half a billion dollars on their upcoming games subscription service, Apple Arcade, according to Gizmodo.
If true, Apple Arcade’s budget would be half of Apple’s current TV and films streaming budget, which is reportedly $1 billion. Multiple sources told Financial Times that the majority of games planned for the service have million dollar budgets.
Some analysts believe that Apple Arcade will bring in more revenue from subscriptions than its current streaming service. Reports from developers signing exclusive iOS deals for specific lengths of time are also said to help grow the platform.
Financial Times stated that analysts at HSBC estimated revenues will rise from $370 million in 2020 to $2.7 billion by 2022, and almost doubled again by 2024. Their predictions are based off of 29 million users by 2024, paying a subscription price of $12.99 per month.
Shortly before Apple’s announcement of their games subscription service, Google announced Google Stadia, their own games streaming platform, which is said to be more powerful than both PS4 and Xbox One combined.
While we wait to hear more details about Apple Arcade, read about how we’re not sure if it can save mobile gaming and check out everything we know about Google Stadia.
Let us know your thoughts on both gaming services in the comments below.
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Jessie Wade is a news writer for IGN. Chat with her on Twitter @jessieannwade.
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