Is Apple Arcade a threat to gaming companies?



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Apple Arcade (AAPL) is the company's subscription game service that was unveiled at Apple's annual event last week. The service will be launched on September 19th. At launch, subscribers will have unlimited access to more than 100 games on the Apple platform. So, what are the important features of Apple's gaming service?

Apple Arcade is a subscription game service

Apple Arcade is an "all-in-one subscription platform". It is ad-free and users will not have to shell out money for additional purchases or microtransactions. In addition, users will be able to download games for offline play. In addition, it will be available on all Apple devices such as iPhone, iPad MacBook and Apple TV.

The Apple Arcade subscription can be shared with up to five family members. The subscription costs $ 4.99 a month. In addition, Apple has partnered with leading publishers and will leverage global video game growth to gain ground.

According to this TechRadar report, "Apple has not announced a specific Apple Arcade controller, but the wireless support of the PS4 DualShock 4 and Microsoft's Xbox One controllers is coming on tvOS, iPadOS and iOS 13 on September 19 – launch date Apple Arcade – you will be able to associate the joysticks with these devices. In addition, some games support Bluetooth MFi controllers. "

Apple rivals a billion dollar industry

It's official. The game has stormed the world. It is one of the main forms of entertainment. And the global market for online broadcasting is about $ 22.6 billion. By comparison, global movie ticket sales are expected to reach $ 13.6 billion in 2019. For this reason, AT Kearney estimates that spending in the traditional sports industry will range between $ 480 and $ 620 billion. .

Newzoo recently estimated that the global gaming market will reach $ 152 billion by the end of 2019. There are more than 2.5 billion players in the world. It is quite possible that the gaming industry doubles by half by the end of 2025 due to its growth rate and increasing number of players.

Subscription gaming, like Netflix for gaming, is still in the early stages of growth. In addition to the new addition of Apple Arcade, Sony Corporation (SNE) and Microsoft (MSFT) have been offering subscription gaming services for some time, but the trend has not yet gained popularity among gamers.

Leading gaming company Electronic Arts Inc. (EA) is also studying the cloud gaming market and has been a pioneer in this area. Shares in gaming companies such as Electronic Arts (EA), Activision Blizzard (ATVI) and Take-Two Interactive Software (TTWO) posted respective returns of -0.05%, 2.5% and -4.3%, respectively. . Will Apple Arcade have an impact on the sales of traditional game publishers?

Why Apple Arcade will be successful

Apple Arcade will be able to leverage its vast customer base with Apple devices. Apple has sold billions of devices over the years. Each of them can be a potential subscriber to Apple Arcade.

We saw that the Apple Arcade subscription costs $ 4.99 a month, which is very convenient. Plus, the move to the subscription game could grow at an exponential rate because players are not stuck with one game that they've bought. Subscribers will have access to several other games on the Apple Arcade platform.

Apple Arcade is Apple's fourth subscription service. The other subscriptions of the company include Apple Music, iCloud and Apple TV +. Apple is optimistic about the growth of subscription gaming. In addition, the company could also be an engine of innovation in this segment.

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