Apple is spending hundreds of millions of dollars to get new video games for its upcoming Arcade subscription service, according to some people who are unfamiliar with the dealings.
The substantial disbursement of developers shows how seriously Apple is taking games as a new source of income subscriptions, despite the fact that the public is paying more attention to television and news.
It also shows the increased competition in Silicon Valley for exclusive rights of the best material, as an iPhone manufacturer makes offers against other new games platforms from Google and Tencent, as well as the Nintendo console manufacturers, Sony and Microsoft.
Apple's Arcade Exposure last month at an event in Cupertino, California, where Hollywood celebrities including Oprah Winfrey and Steven Spielberg went to fight with his TV + platform. Apple hopes to drive new and more predictable sources of revenue from online services as sales growth grows for the iPhone.
Some analysts predicted that games donations could be a multi-dollar dollar business for Apple within a few years. But to establish itself in the market, Apple has to make significant investments in advance without knowing the success of Arcade. Some people who are involved in the development of the project say that Apple is spending several million dollars on most of the selected 1
This compares with the $ 1bn told to Apple in 2017 that they had budgeted for the original content for TV +, although analysts believe that its video expenditure has already exceeded that level.  Apple is offering an additional incentive if they agree that their game will only be available on Arcade, keeping their release back in Google's Google app store for Android smartphones or other subscription gaming parcels such as Microsoft's Xbox game pass. But after several months of exclusivity, developers will be allowed to release their games on PCs or other console games such as Nintendo's Swtend or Sony Swatation.
Apple refused to comment.
The titles already announced for Apple Arcade include established brands as Sonic the Hedgehog Sonic the Hedgehog Cartoon Network and Lego, as well as new games from independent developers such as ustwo games, Annapurna Interactive and Bossa Studios. This was a great success with most of those selected on the iPhone's App Store. Apple's advances cover the cost of developing a typical indie game, according to people who are familiar with the terms.
Apple's Arcade focus on indie games is in contrast to major Hollywood names that are connected to TV +, and it has left some developers careful about what people will pay for the service.
“It's ] As it was,” said one of the games industry executive, referring to the independent Oscar winning film series in California's wine country.
Still, and now games as the most lucrative part of the entertainment business, Arcade could take over TV + in the coming years.
Apple has not said how much it will charge for Arcade or TV + subscribers, but HSBC's analysts have estimated that Apple's Arcade revenue will grow from $ 370m in 2020 to $ 2.7bn by 2022 and $ 4.5bn by 2024, and HSBC by 2024 by then it predicts that 29m users will pay $ 12.99 each month. These figures are greater than their revenue estimates for Apple TV +, at $ 2.6bn by 2022 and $ 4.1bn by 2024, and Apple News +, which predicted to generate $ 1.7bn and $ 2.7bn respectively.
In addition to encouraging its business services, Apple's main ambition with Arcade is to achieve the advantage in using it on Google Play.
For many years after the App Store was launched for the first time, mobile games on iPhones would reach Apple's high-quality customers. The developers also hoped that Apple would get rewards for prioritizing its devices with a prominent placement in the marketing of the App Store.
Today, a much larger share of the global smartphone market means that large developers usually develop their titles on both stores. This is especially true for free games such as Candy Crush Saga, Clans Clash or Fortnite, which makes most of their income from advertising or from in-app power purchases, extra lives and character personalization.
“People who play games are often highly praised and love them, but it is difficult to compete with free, so there is only a smaller audience in these games,” said Apple as Arcade announced.