Apple Arcade, a new game changer

Foreword: The following article is based on my own analysis. The exercise consists in determining the reasons that would have motivated Apple to launch the Apple Arcade service, then to analyze this service in its current form (as of March 21, 2021) in order to identify new growth drivers. This article is a translation of an article I wrote in French.

Apple and video games: the story of an unstable couple

Since its creation, Apple has maintained, more or less, a close bond with video games. When the Apple II was launched in 1977, the company clearly made video games a marketing argument with the slogan “The home computer that’s ready to work, play and grow with you” and praised the possibilities of playing Pong but also to create our own video games. Also, the fact that the technical architecture has been made public and thanks to its programming ease, the number of video games developed for Apple II, especially indie games, has steadily increased over the years. Finally, the plethora of software and compatibility with floppy disks have helped expand the installed base of Apple II, which has given visibility to developers, like Jordan Mechner and his famous Prince of Persia.

Apple II

If Apple II could be considered as a gaming platform, like the Commodore 64, it wasn’t as much the case for the Macintosh thereafter. Change of microprocessor, closed ecosystem, high price, there were many obstacles for video game developers, who would prefer to continue developing on Apple II, or even switch to PC Compatible. It was in the 90s, with the arise of PC computers sales and the commercialization of graphics cards, that video games on PC experienced an unprecedented boom, to the despair of Apple, which again changed the type of microprocessor, once again pushing developers to review their programming routine on the Macintosh. We will also pass the bitter failure of the Pipp!n, a video game console launched in collaboration with Bandai in 1996. Note that with the return of Steve Jobs at the helm of Apple, the awareness of video games importance remains palpable in Apple’s strategy, and the introduction, by the CEO himself, of Halo on the MacWorld stage in 1999 proves that.

Macs still undergoes a reputation of a platform unfavorable to video games, especially with high budgets games, and have to settle with PC ported games on a very limited choice of titles and with delays that can reach two years (essentially ported by two specialized companies: Feral Interactive and Aspyr Media). This situation is not only linked to an installed base that is smaller than the PC (90% of the computers in the world are PCs), but the majority of the installed base of Macs does not have sufficient technical power to support “Triple A” games. Concerning indie games, technically less needy, there have been simultaneous ports with the PC in recent years, especially thanks to Apple’s efforts in developing more accessible development kits (Metal tool).

So, today, can we say that Apple has become an outsider in the video game industry? Yes and no. Yes, concerning the computer gaming market, and this since the 90s, but no, concerning mobile gaming (smartphone and tablet). Indeed, if it‘s the iPhone that allowed Apple to take on the economic proportions that we know today, it is also this product that helped the company to reconnect with the video game sector.

iPhone, the king of mobile gaming

Since the early 2010s, revenues from applications sales through the App Store have been much higher than those generated through Google Play, including for video games, even though Android’s market share is higher than iOS’s worldwide. According to figures for the first half of 2020 released by SensorTower, mobile games spending stands at $ 22.2 billion on the AppStore compared to $ 14.4 billion on Google Play, or nearly 30% more. To illustrate this, Genshin Impact, released on iOS, Android, PS4 and PC, yield a profit of $874 million, of which $521 million, or nearly 60%, was generated through the App Store.

Another major fact is that revenues from mobile gaming represents more than 67% of the total revenues generated by applications on the App Store. So the figures speak for themselves, mobile games are undoubtedly at the heart of App Store strategy, and Apple demonstrates this during its communications’ high points. Thus, we were able to attend game presentations during major Apple events, by famous people from the video game industry. Here are a few examples:

• Nintendo Creator and Producer Shigeru Miyamoto appeared on stage at the Apple Special Event in 2016 for Super Mario Run, which was exclusive to iOS for 1 year;
• Jenova Chen, founder and CEO of thatgamecompany, which is behind the famous Journey, appears on the Keynote stage in September 2017, to present his next game, Sky: children of light, exclusive to iOS for 1 year;
• Todd Howard, director and producer at Bethesda Game Studios, takes the stage at the September 2018 Keynote to present The Elder Scrolls: Blades.

Another key finding is that mobile holds 48% of the video game market in terms of revenue, while the remaining 51% is shared between PC and consoles, with the latter dominating by 28%. Note that Mac gaming is not mentioned, and could be drowned out in PC revenue with a negligible share.

Given Apple’s dominance in the mobile gaming market, one would think it would be enough for the company to stick to its current strategy. This would consist in continuing, with the same pace, the reception of third-party games on the App Store, to occasionally negotiate temporary exclusives, while communicating regularly on the releases of famous games and graphic capabilities of its devices, like it was done with League of Legends: Wild Rift during the Keynote 2020. However, it is not that simple and therefore a SWOT analysis is required to fully understand Apple’s position in the current market and thus identify Apple’s ambitions.

1. Apple’s strengths in the mobile gaming market

• A domination in the mobile gaming market in terms of revenue, espacially thanks to a strong presence of the iPhone in the USA and Japan, the two countries that spend the most on mobile gaming;

Market share of mobile game revenue worldwide from 2014 to 2020, by country (Statista, 2021)

• A customer base more inclined to purchase application and in-app content, which is explained, among other, by a higher concentration of iPhones in developed countries (At the end of 2020, the iPhone market share was 48% in the USA and Japan, and 46.7% in the UK and Australia);
• A strong presence of successful freemium games with recurring in-app purchases (example: PUBG);
• The proprietary SoCs in Apple’s mobile devices are the most powerful on the mobile market, enabling the most advanced graphics experiences on mobile;
• The continuum of technical architecture in Apple devices allows high compatibility between different generations and categories of devices, and only marginal adjustments by developers may be necessary;
• A very large game offering, with a lot of quality games highlighted through content marketing in the App Store;
• The integration of Apple Silicon processors in Macs makes possible to play mobile/tablet games on Mac directly, with no additional development.

2. Apple’s weaknesses in the mobile gaming market

• The iPhone market share in the two countries that spend the most in mobile gaming, after the USA and Japan, which are China and South Korea, is very low compared to Android (China: 16, 6%, South Korea: 19%);
• The market share of iPhones remains lower than Android’s in many developed countries (25.3% in Germany and 24.5% in France, for example);
• A brand image that is not necessarily associated with gaming, unlike Microsoft, for example, which has developed the Xbox brand beyond consoles with Game Pass and xCloud. This can be due to a very few high budget games on Macs;
• A very large game offering that can drown out many quality games, including premium games without in-app purchases such as console game ports (Examples: Bloodstained, Wonder Boy, Dead Cells, …).

3. Threats that may slow down Apple’s growth in mobile gaming

• A Chinese market subject to risks of economic conflicts;
• Steady growth in revenues from mobile gaming on Android (+19% from 2019 to 2020), with a pace that is close to iOS’ (+22.7% from 2019 to 2020);
• The emergence of cloud gaming on mobile with several players (Google, Amazon, Microsoft), accessible via web browser;
• Many successful games have a business model based on loot boxes, which can be assimilated to gambling, and therefore brings legal issues, particularly related to usage by minors;
• Improvement of the competing SoCs performance, especially Qualcomm’s, which offers SoCs tailored for gaming with improved graphics performance (Snapdragon Elite Gaming) and the upcoming Samsung Exynos coupled with a GPU part designed by AMD;
• Competition from Android smartphones designed for gaming, offering a series of dedicated accessories such as removable controllers (example: Asus ROG Phone);
• Qualcomm plans to launch a console similar to the Switch (added 03/24/2021);
• Complaints for abuse of dominant position such as the one filed by Epic Games;
• Nintendo Switch sales figures prove that handheld consoles can stand up to smartphones if they offer home console / handheld flexibility.

4. The opportunities that can maintain or even develop gaming on Apple devices

• The integration of the latest generation PowerVR GPU with Ray Tracing capabilities in future Apple Silicon processors could allow the development of higher graphics quality games and console game ports;
• Unity in terms of technical architecture may encourage developers to port their games to all Apple devices to maximize profits, which could enrich Apple TV and Mac catalogs;
• The development of gaming accessories by Apple could reinforce the perception of Apple devices as machines suitable for gaming;
• More regular and broader communication on social networks;
• An incentive for successful console games ports through a reduction in Apple’s commission temporarily or permanently;
• Developing more immersive augmented reality experiences using LiDAR and an AR/VR headset.

This analysis was undoubtedly carried out by Apple, and it is probably not exhaustive. My goal is to “reverse engineer” the product designed by Apple to assert its dominance in mobile gaming, address its weaknesses and threats and harness its opportunities in mobile gaming. This product is none other than the Apple Arcade.

The Apple Arcade service launched in Fall 2019 in over 150 countries in a new App Store tab on iOS, macOS and tvOS.

Apple Arcade: Premium games highlighted as they deserve

In March 2019, Apple announced Apple Arcade, a subscription service providing access to a catalog of video games playable on devices running iOS 13, iPadOS 13, tvOS 13, and MacOS Catalina or later. For the launch, Apple does not skimp on the means, and offers games developed and/or published by big names in the industry such as Sega, Namco Bandai or Square Enix, but also major players in the independent scene such as Annapurna or Klei Entertainment. The special thing about these games is that they are accessible indefinitely as long as you are subscribed, they are complete, without in-app purchases and are compatible with MFi controllers, but also PS4|5, and Xbox One|Series controllers. We are therefore closer to a console experience, and as a bonus, we have an “ubiquitous” experience, since Apple Arcade’s games are playable on most of Apple devices.

To analyze Apple’s offer, we can approach it via the 4Ps:

1. A subscription with unlimited access to more than 100 games without in-app purchases

Apple offers a wide choice of games of all kinds (action-adventure, puzzle, RPG, sports, etc.) and for all ages. Apple chooses which publishers to work with and partially funds their projects, likely in exchange for permanent or temporary exclusivity. The projects are obviously approved upstream according to well-defined criteria. The strong argument of this subscription offer is visibility. Indeed, premium games are often drowned in the hundreds of freemium games, and premium games are often of much better quality, and emerge from the fertile imagination of independent developers. This visibility takes on its full extent with the tab dedicated to Apple Arcade in the App Store, and it benefits both the developer whose game is displayed in a dedicated showcase, and the consumer who finds in this showcase games cherry-picked, away from the ocean of free-to-play games.

Thanks to its partnership strategy, Apple has endowed its catalog with eclectic titles:
> Several licensed cartoon games are available (Samurai Jack, SpongeBob, …) to reach the youngest.
> Several sports games are offered and benefit from licenses from the main American sports federations to reach the American market.
> Several games developed by Japanese studios to reach the Japanese market in the first place, but also countries with a large community of gamers fond of J-RPG and Visual Novels. For that part, Apple has made a smart move because they have negotiated games from prestigious Japanese studios or renowned creators such as:

• Various Daylife, developed by the creators of Bravely Default and Octopath Traveler;
• Fantasian, directed by Hironobu Sakaguchi, the creator of the Final Fantasy license;
• World’s End Club, by the director of Daganronpa.

> Quality games from major independent game publishers like Annapurna (Sayonara Wild Hearts rated 88% on Metacritic) and Devolver.
> Games from independent developers who have produced renowned mobile games such as usTwo which has previously developed Monument Valley, and has developed Alba: A Wildlife Adventure for Apple Arcade (84% on Metacritic).

The Apple Arcade catalog is compatible with all Apple devices equipped with a screen or that can be connected to a screen (Mac Mini and Apple TV). However, the iPhone is the most popular Apple device on the planet and is therefore the primary vehicle for purchasing Apple Arcade subscription. Therefore, developers must tailor their games to be playable primarily on a smartphone, and must compromise with the touch interface. In other words, a game that requires 10 buttons, will not run properly on a smartphone. Although, the technical power of Apple devices is able to offer games with high-end graphics, it remains that ergonomic limitation, which could prevent Apple TV, iPads and Macs from benefiting from console games. Apple even compared the power of the iPad Pro to an Xbox One S during the keynote at the end of 2018.

2. Over 100 games at the average price of one mobile game per month

The cost of the Apple Arcade subscription is € 4.99 / month, with 1 month free trial as standard, and 3 months trial for new Mac buyers. This subscription is included in the Apple One offer which includes, in addition to Apple Arcade, Apple TV +, Apple Music and 50 GB of iCloud for € 14.99 / month. Alone or integrated with Apple One, this offer is very competitive compared to what is offered on the video game market in general. Note that the subscription benefits from family sharing, and it can therefore be used by up to 5 members.

Also, all Apple Arcade games are complete, with no in-app purchases and no ads. A distinctive characteristic on which Apple insists since most of the successful mobile games are freemium with in-app purchases, which are sometimes frowned on by the gaming community because they can become financial pitfalls. These include games where purchases are based on loot boxes, which offer random rewards for a fee. This type of game is currently at the heart of controversy, and is the subject of legal proceedings and political debates, because it is assimilated to gambling and is prone to addictions. Apple has also been sued for allowing these kinds of games on its App Store. Moreover, free games displaying advertisements deteriorate the gaming experience with unwanted pop-ups that cannot be interrupted for at least ten seconds.

3. Communication based on Apple Arcade highlights and advertisements via YouTube
Apple promotes Apple Arcade during its keynotes, including its announcement and launch. The other main promotional channels are YouTube and Twitter. YouTube is used to publish ads announcing the arrival of new games or to focus on a particular game. Twitter is used for regular news about the service. Apart from these channels external to the Apple ecosystem, the Apple Arcade benefits from a highlight on the news page of the App Store, and even inside the Games section while the Apple Arcade has its own section.
Beyond these channels, there is no particular highlight in the Apple Stores or in the Apple areas of authorized resellers. Also, there is no specific communication via specialized video game media, Instagram or YouTube and Twitch video makers.

4. Distribution only via the App Store
Apple Arcade subscription is only done through the App Store and games can only be played on Apple devices running iOS 13, iPadOS 13, tvOS 13, and MacOS Catalina or later.

A competition on all sides

1. Mobile competition, the great rival goes on the offensive

On the mobile side, Google was quick to go on the offensive with the announcement of the “Google Play Pass”, a subscription offer to a catalog of more than 300 premium games aligned with the price of the Apple Arcade on the monthly offer, namely €4.99 / month.

On the other hand, Google is more competitive on the annual offer with a price of € 29.99 compared to € 49.99 at Apple. Unlike Apple Arcade, there are no exclusives on the Google Play Pass, but games already available in the Play Store section. Google’s offering features quality and critically acclaimed games like Stardew Valley, Limbo, Star Wars: KOTOR, Monument Valley and more. However, these games have already been around for several years on the Apple and Google stores.
There is also an alternative mobile game subscription offer accessible through the App Store and Google Play, called GameClub. This deal also offers games with no in-app purchases and no ads at € 4.99 / month, but the quality and scope of the games falls far short of Apple Arcade and Google Play Pass games.

2. Cloud gaming on mobile: the other GAFAMs on the cloud

Google with Stadia, Amazon with Luna, Microsoft with xCloud, and Facebook with Facebook Gaming, they all have their cloud gaming services. If the first three offer, more or less, similar content with mainly triple A games that are usually found on PC and consoles, Facebook is still in a trial phase with mobile games like Asphalt. Google, Amazon and Microsoft have the most mature proposals today, with deployments already made (for Amazon and Microsoft, it’s still beta phases, and Amazon is still limited to the US). However, their business models are different:

• Amazon offers the Luna service, unlimited access to a catalog of games via a subscription, which can be extended to additional packages, at an additional cost. For example, the Ubisoft package giving access to the games of the French firm.
• Google offers, Stadia, a catalog of games to be purchased individually as on a Steam store. It is also possible to take out a subscription giving access to two games per month.
• Microsoft offers xCloud as an integrated service with the Xbox Game Pass Ultimate subscription which already provides access to a catalog of games for download on Xbox One S / X, Xbox Series S / X and Windows 10 PC.

The special thing about these three offers is that they will all be accessible via the Safari browser on iOS and iPadOS. However, Google is experiencing difficulties with Stadia, due to a not very encouraging business model for the customer who sees himself buying games which are only playable if your internet connection speed is enough. Aside from these players, Sony has offered PS Now for many years, but is only accessible via a Playstation console or on a PC.

3. Consoles and PCs, the unbeatable veterans

With the ability to play Apple Arcade games on Apple TV and Mac, the PS4/5 and Xbox One/Series controllers compatibility in addition to MFi, and the offer of games usually launched on PC and consoles like Shantae, Apple is obviously trying to scrape market share from classic video game platforms (penetration strategy). But Apple’s direct competitor may end up being Nintendo, especially in the indie and multiplayer market. Indeed, the Kyoto firm offers the Switch, a home console, convertible into a portable console, when Apple Arcade is playable on both iPhone and iPad as well as on Apple TV. It is also possible to connect iPhone or iPad to the TV screen via an HDMI or through AirPlay. Moreover, the Switch has become a prominent place for indie games and Nintendo Direct promotes it consistently. Nevertheless, the consoles enjoy their status as specialized machines and offer a catalog of dedicated games, exclusive IPs, and the comfort of play with a controller.

Apple Arcade: An upgrade and a better visibility are needed to face the competition

1. A need to diversify the offer and move upmarket

The Apple Arcade catalog features exclusive, quality games for all tastes at a great price. However, there are three elements that suffer by comparison to the competition:

• Apple Arcade does not offer games sold in the App Store, contrary to the Google Play Pass, or Xbox Game Pass that offer games that can be purchased separately (at the time this article was written).
• Some exclusive IPs offered by Apple Arcade are temporary, and will be available on PC and consoles one year after their release. In comparison with Nintendo or Sony, the games from their internal studios remain confined to their consoles (even if the situation begins to change for Sony, which multiplies more and more the ports on PC, but not on the competing consoles).
• The games offered in the Apple Arcade are low budget games, with a large majority of indie games, which, even if they are on trend, remain games that rely on their creativity and artistic direction, and very little on graphics. In November 2018, during the keynote, Apple announced that the A12X SoC gives the iPad Pro a power equivalent to the Xbox One S. Today, we are at the A14 generation of Apple’s SoC, and yet no games does not seem to be fully exploiting these processors.

2. A need to multiply the communication’s channels

Apart from the advertisements posted on Apple’s YouTube channel and Twitter account, Apple Arcade does not have a presence on other channels:

• In addition to YouTube and Twitter, Nintendo, Playstation and Xbox are present and very active on Facebook and Instagram, and the latter two are present on TikTok.
• When the PlayStation 5 and Xbox Series were launched, manufacturers sent consoles to major medias and video makers/influencers to present them on their Twitch or YouTube channels. Video game publishers are sending download codes for games about to be released for testing.

Apple Arcade: four potential initiatives, conditioned by content and “containers”

Prerequisite: Reinforcement of communication & creation of an Apple Arcade’s hub application
Before discussing the different suggested initiatives, two initiatives should be undertaken to ensure the growth of the Apple Arcade offering :

1. User experience improvement through a dedicated app

The creation of an application dedicated to gaming on Apple products would establish an ecosystem dedicated to video games to convey the perception of being on a console. It would be a hub that contains Apple Arcade games, games sold on the App Store and Game Center (friends, leaderboards and achievements). This type of application already exists for video streaming with the Apple TV application which aggregates Apple TV+, third-party services, and movies and series purchased through iTunes. Part of the failure of the Xbox One was due to communication focusing on multimedia aspects, which dispersed the interest of gamers no longer seeing it as a console.

2. Diversification of communication channels and creation of an Apple Arcade community

Apple should launch an Instagram account dedicated to Apple Arcade, like it’s already done for Apple TV+, but also a TikTok account in order to reach the youngest. Like console manufacturers and video game publishers, it would be a nice move to provide devices, an Apple Arcade subscription, and possibly a sponsorship, to influencers to promote Apple Arcade games to their audience. Communication should also be strengthened in Apple Stores and approved resellers with a layout space with an Apple TV for demonstration. Finally, like Nintendo, Xbox and Playstation, which all have online platforms for selling clothing and accessories, Apple could do the same around Apple Arcade to strengthen the community aspect.

Initiative 1: Continuation of the current strategy

This initiative consists in continuing to invest in temporary, low-budget exclusives with big publishers (Sega, Square Enix, etc.) and famous independent developers, and to continue with the current subscription options. A monitoring should also be done to detect weak signals on games with high potential, such as Among Us which has been successful more than a year after its iOS/Android release, via streamers. This monitoring must also be done on PC games via Steam trends for example. Finally, it would be interesting to get closer to well-known game designers who have started a freelance careers, such as Ikumi Nakamura and Jade Raymond who recently left their workplace to start their own business.

Initiative 2: Continuation of the current strategy (Initiative 1) & introduction of accessories for gamers

This initiative consists in reinforcing the gaming aspects of Apple products in consumers’ minds through accessories aiming at improving their gaming experience. It particularly involves an Apple designed controller, with a button giving a direct access to a hub for Apple Arcade games (like the Apple TV+ tab), to the Game Center and why not a button to share screenshots. Apple could also offer a dock allowing 4K upscaling of iPhone/iPad games to television and automatic access to the hub. Also, “Arcade” bundles containing an Apple TV with a controller and 3 months of Apple Arcade would be a good idea.
Note that third-party accessories from GameVice, SteelSeries and Razer has been marketed, but their success or failure remains unclear.

Initiative 3: Continuation of the current strategy (Initiative 1) & enrichment and diversification of the game catalog

1. Including “System sellers”

Throughout the history of microcomputers and consoles, it’s the software offering, in quantity and quality, that has conditioned the future of the machine. Sometimes just two or three apps can be used to attract the customer, these are called “killer apps”. On the console side, we also talk about “System sellers”, in other words a game which by itself will justify the purchase of the console, such as Mario and Zelda games on Nintendo consoles or Gears of War and Halo on Xbox.
Today, in the subscriptions’ era, the stakes for Apple are twofold: to sell Apple Arcade subscriptions to owners of Apple devices and to push Android gamers to switch to iOS/iPadOS by attraction to Apple Arcade. For this, strengthening the content and getting “system sellers” are mandatory, and exclusives, or even permanent exclusives could help a lot. Hironobu Sakaguchi’s next game, for example, “Fantasian” may boost the Apple Arcade by attracting J-RPG fans, provided the reviews are rave.

2. Including games already published on the store
Like the Google Play Pass and Xbox Game Pass, it would be a good idea to include some handpicked games in the Arcade offering. Games like Monument Valley, Dead Cells, Wonder Boy, or Bloodstained are critically acclaimed games and deserves their place in this subscription service which aims to give visibility to excellent games drowned int the App Store ocean with the profusion of free-to-play games.
Finally, some games are published on the Japanese App Store, but arrive in the West market on consoles and PC only but not on the Western App Store. This is the case with 428: Shibuya Scramble, which has been very well received by critics, and therefore, could be integrated into Apple Arcade.

3. Creating a retrograming section
Retrogaming is on the rise. Playing on the nostalgia of customers about their thirty and forty, who grew up with 80s and 90s video games, has become a commonplace : compilations, remakes, and mini consoles have abounded in recent years and with a great success. Retro games already exist in the App Store (Sega, SNK, Dotemu, Bethesda…). Adding a retro section with games from the App Store or unpublished ones after negotiation with the publishers, could be an unstoppable argument for nostalgic gamers. In addition, these games require a limited number of buttons which would be appropriate with touch buttons and above all only require low GPU power.

4. Including bigger budget games
The technical capabilities of Apple’s SoCs undeniably make it possible to offer games that are much more technically advanced than the games currently available in Apple Arcade, or even in the App Store in general. Thus, ports of triple A console games are largely doable, and the Nintendo Switch is proof of this, even if for the latter the downgrade is important. If the ergonomic limitations related to touch screens becomes an obstacle, it would be necessary at the launch of the game in question, to put a warning on the need for a controller to play. These games may be available as a complementary offer to the current Apple Arcade and which could be called “Apple Arcade+” or “Apple Arcade Pro” for example, for a higher price, about € 9.99 / month.
Note that in the days of the iPhone 4, games like Infinity Blade were technical showcases to demonstrate the superior graphics capabilities of the iPhone 4, which was the first device to be equipped with the Apple‘s own chip.

5. Adding games with a retention potential
Apple Arcade needs to have a game that will retain the player and thereby push them to stay subscribed to Apple Arcade. This type of game is essentially multiplayer games with frequent updates, adding new quests or granting regular rewards. These include games such as MMORPG, MOBA and battle royale, which also have a competitive aspect that can result in e-sports tournaments. Also, the episodic format like the TellTale or DontNod games can push the player to continue his subscription.

Initiative 4: Strengthening the current strategy (Initiative 1), diversification and upgrading of the offer (Initiative 3) and introduction of hardware for gaming (Initiative 2)

This initiative consists of combining the three aforementioned scenarios, and even going further in the development of the hardware, for example offering an Apple TV Arcade Pro which would have a similar size as the Mac Mini with an Mxx chip, more powerful than the Axx chips in order to run the triple A games to the maximum of their graphic settings, and which would be accompanied by a controller,. The launch of an AR / VR headset would also come into play with the launch of appropriate games in Apple Arcade.

Conclusion

The constant growth of Android in mobile gaming, which is reinforced by hardware initiatives (Samsung-AMD collaboration, Qualcomm SnapDragon Elite Gaming, etc.) is among the threats to Apple. Beyond the threats, Apple has several opportunities and strengths that would allow it to take market shares to game consoles. Thus, there are a plethora of reasons that motivated Apple to launch Apple Arcade, but as noted, there are still many areas for improvement. In addition, choosing not to go into cloud gaming turned out to be relevant given the fiber coverage, and the difficulties associated with 5G (very low coverage, expensive subscriptions, drastic autonomy reduction ,…).

In view of the different initiatives mentioned above, it would seem that initiatives 3 and 4 are the most appropriate if Apple wishes, in a medium term, to confirm its domination in mobile gaming, but above all to take consoles’ market share. Initiative 3 is the less risky of the two in terms of investment, but it may not provide a sufficient gamer-oriented image. At this step, a business modeling is necessary for the two initiatives to identify the methods for Apple’s fee and the commissions on the new software side, and the price positioning for the hardware in initiative 4. For the two initiatives, a an optimistic scenario and another pessimist will finally give a better assessment on the viability of these projects.