Apple is paying developers several million dollars for exclusive rights to each game joining its service, according to Financial Times. This information comes from “people involved in the project’s development,” not official sources.
These same unnamed insiders say games don’t have to stay exclusive to Apple Arcade for more than a few months. After that, titles can appear on Android, Xbox, etc. This implies Apple intends to frequently add new offerings to its service.
Arcade is a big loot box for Apple
Apple is gambling that enough people will join Arcade for its initial $500 million investment to pay off. Analysts with HSBC think they will.
They predict revenue from this gaming service will total $370 million in 2020, and will expand to $4.5 billion by 2024. That will require 29 million subscribers.
These same analysts predict Apple TV+ will generate $4.1 billion in 2024.
At the official announcement last month, the monthly subscription fee for Apple Arcade was kept secret. HSBC analysts predict it will be $12.99.