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How Apple Arcade Could Change How Apple Makes Money from Games

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Apple’s latest push into gaming is a subscription service

Apple (AAPL) does make a good chunk of money by charging a healthy cut for paid games. However, such games face stiff competition from free games. Thus, Apple doesn’t monetize a huge chunk of games on its App Store. The company may be close to a solution.

Among the many services that Apple unveiled at its keynote event on March 25 was Apple Arcade, its biggest push into gaming yet. Apple Arcade is yet another subscription service that gives its customers access to a huge repository of games, which can be accessed through iPhones, iPads, Mac, and Apple TV.

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Apple is beginning to build tomorrow’s businesses

However, we don’t know how much the subscription will cost, or how Apple will be splitting its revenue with game developers. Apple Arcade will feature games that will be exclusive to Apple and can’t be played elsewhere. Apple revealed that Apple Arcade will offer more than 100 new and exclusive games.

In the future, the new subscription services that Apple introduced on Monday could make a material difference to its bottom line. However, in the short term, Apple’s outlay to get the services, especially its streaming service, going will likely be massive and will be a drag on its bottom line. That said, Apple has unrivaled financial strength, and can afford to go through a few years of huge outlays.

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