APPLE IS REPORTEDLY PLANNING to throw more than $500m (around £381m) at its incoming Arcade game streaming service.
So says the Financial Times, which reports that new service's budget is "likely to exceed $500m" as Apple looks to acquire more than 100 new and exclusive games that will debut on Arcade when it launches in October this year.
At the launch of the service last month, where Apple also showed off its much-hyped TV+ service, the company confirmed that Arcade will be integrated into the App Store and won't feature any advertisements or in-app purchases.
The company also announced some titles for the service, including Beneath a Steel Sky, Sonic the Hedgehog, and games from Giant Squid, Cartoon Network, Snowman, Konami, Lego, as well as several titles from independent developers such as Boosa Studios Ltd, Annapurna Interactive and ustwo.
Sources familiar with the matter told the FT that many high-profile games selected by Apple have budgets in the "millions."
Apple is also reportedly offering extra incentives to game developers for granting temporary exclusive rights for their games to Apple. That means developers - who will reportedly be paid based on how much their games are played - will have to hold back from releasing their games on other platforms such as the Play Store.
But games would stay exclusive to Apple Arcade for just a few months, according to reports, after which developers would be able to release them on computers or other gaming consoles such as Sony's PlayStation or Nintendo's Switch.
According to analysts at HSBC, Apple Arcade subscription could bring in more revenue for the company than Apple TV+ streaming video service. They estimate that Apple could earn revenues of around $370m from Arcade service in 2020, which will increase to $4.5bn by 2024.
In comparison, revenues from Apple TV+ in 2024 will be around $4.1 billion, according to analysts. µ
'Some of us like the misery'
That'll surely affect its credit score