Apple Arcade crisis: the service would have been unprofitable if not for integration with Apple One
Apple Arcade, a subscription mobile gaming service, is among several Apple services facing profitability and user engagement issues. According to recent reports, payments to developers have been steadily declining, and without integration into Apple One, the platform would likely be unprofitable.
Here's What We Know
According to The Information, Apple loses more than $1 billion annually on its Apple TV+ streaming service, and Apple Arcade also shows weak financial performance. Insiders claim that in the first year after its launch in 2019, the service had only 2 million users, with about 25% of them on a free trial period.
The report also states that without Apple One, a subscription package that combines Apple Music, Apple TV+, Apple Arcade, and iCloud storage, and in the premium version, Apple News+ and Apple Fitness+, some services, including Apple Arcade, would hardly be profitable.
Launched in 2019, Apple Arcade aimed to become a premium competitor in the mobile gaming market by offering a catalogue of games without ads and in-app purchases. The company's partners included major publishers such as Capcom, Sega, Bandai Namco, and Devolver Digital.
Source: Insider Gaming
