This sets the platform, which was launched at the beginning of October, apart from other games flat rates. Does this mean the games market is facing a major upheaval? You won't find big titles like "GTA", "Fallout" or "FIFA" in Arcade. Instead, Apple is focusing heavily on small development studios, unusual game concepts and lots of story. The catalog is intended to appeal to as wide an audience as possible, explain the people behind Arcade.
Customer loyalty
The company does not provide any information on how much money Apple has invested in Arcade, what remuneration and support the developers receive and what profit expectations the company has for the service.
However, making a quick profit is not necessarily the primary goal of such offers, says analyst Liam Hall from market researcher IDC. They also serve to increase customer loyalty and, as Hall puts it, make the fenced garden more attractive.
Independent developers
While the fixed-price game catalogs from Sony or Microsoft for PC and consoles also contain larger titles and usually cost from 10 euros upwards per month, Apple is working in a different field. "Apple focuses more on family-friendly games and small and independent developers," explains Hall.
The offer costs 4.99 euros per month in Germany and 6 francs per month in Switzerland. This makes the Arcade relatively inexpensive. At best, up to six family members can play for the monthly price - provided they all have an Apple device.
Arcade makes owning an Apple device more attractive, says Hall. He sees the games flat rate as a further step towards tying Apple customers more closely to the company through services and securing additional regular income beyond the approximately 30 percent share of the sales or subscription price via the App Store. This is similar to what has already been achieved with the 60 million users of the Apple Music streaming service, according to Apple. The video-on-demand area is also currently being expanded. The Apple TV+ subscription service will be launched in November.
Large customer base
The analyst does not yet want to estimate what impact the game flat rate will have on game developers. Just this much: "It could be a good way for studios to expand their customer base." The calculation: anyone who gets to know a studio through a game in the flat rate catalog may also buy other titles.
Managing Director of the industry association GAME, Felix Falk, believes that subscription models for games are still in their infancy. However, he already recognizes the impact on developers. This is because the competitive situation on the market means that platforms are vying for the best or most successful games. Falk sees such models as an opportunity for studios to market their games.
Apple emphasizes that developers can continue to upload their games to the store as usual. Arcade stands for a curated offering with quality standards and a binding business model. There will be no additional purchases, advertising or data collection.
Industry still in its infancy
It is not yet clear how successful games flat rates for Apple and the like will be. According to GAME Managing Director Falk, the industry is still in its infancy. However, revenue from online services in general, including cloud and subscription services, grew by 52% in the first half of 2019 - to around 228 million euros in Germany.
GAME does not share fears that the trend towards gaming platforms will harm diversity or marginalize certain topics. Platforms have existed in the past and, on the contrary, have made it easier for developers to access the market, says Falk.
And Apple is not the only provider courting small developer studios. Microsoft and Sony also have corresponding programs for their ecosystems. Felix Falk does not see developers in the position of supplicants when working with the platform giants. In order to keep their subscribers happy, the operators are dependent on unique game ideas. This is why we can talk about negotiations at eye level. (SDA)