Apple seems to be taking its entry to the gaming service arena very seriously, obviously hoping that it would generate significant revenues.
The Financial Times is reporting that Apple is spending hundreds of millions of dollars secure new games for the upcoming Apple Arcade service.
“Several people involved in the project’s development say Apple is spending several million dollars each on most of the more than 100 games that have been selected to launch on Arcade,” the publication reports. “Its total budget is likely to exceed $500 million.”
The annual market for video games is bigger than that of any other content type, including Hollywood movies.
Apple Arcade will most probably target casual gamers who choose the iPhone, but that mainstream audience is inarguably the biggest part of the market.
Apple previewed the service service without providing details, and most importantly, how it would monetize people who aren’t attuned to paying a monthly fee for playing caual games.
The Financial Times says that Apple plans to give developers more money when they create games exclusively for Arcade and forego rival platforms like Google Play.
In any case, the Apple will have to compete with established video game giants like Nintendo, Sony, and Microsoft, which are all also working on their own services.