As reported by the Financial Times, which claims to have spoken with multiple sources familiar with the matter, the iPhone maker will "likely" splash out over $500 million to create a tantalizing portfolio of top-notch mobile games. The exclusivity will only be for a few months though and after that, they will be free to release their games on any platform they want.
Apple is willing to spend "hundreds of millions" of dollars to fill out its Apple Arcade premium game subscription service with quality titles. The company did just that by launching a slew of services including a gaming service Arcade.
According to the Times report, some forecasters believe Apple's push into gaming will deliver more subscription revenue than its streaming service - and thus the big-budget strategy is an attempt to blast its way into a crowded game market. The advance given by Apple to game title developers is more than enough to cover their game development cost. Brands like Disney, Konami, Sega, as well as smaller shops that have done well in Apple's App Store like ustwo (which developed the hit game Monument Valley), are all said to be taking part in Apple Arcade. 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.
Meanwhile, Apple refused to comment. A surprising one, at that, given how much attention has surrounded the launch of its Netflix rival. The full Apple Arcade launch lineup will represent the first true test, but as of now it certainly looks like Apple has a victor on its hands.