Apple Considering Game Subscription Service, Says Report
An Apple a day.
Apple is reportedly considering its own video game subscription service. The proposed service would pair a subscription fee with all-you-can-eat access to a bundle of games, and the company has begun exploring publishing opportunities with developers.
Cheddar reports that Apple began talking with developers in late 2018, and that the idea is still in the early stages of development. Right now it's unclear what kinds of games Apple would include in such a service. The early uncertainty means Apple could ultimately choose not to pursue it to completion. But games are a big business, and analysts say the majority of their App Store revenue is coming from games. Functioning as a publisher could allow Apple to negotiate with cuts to its own fees for costs like distribution.
Apple has begun to adopt other subscription models, like Apple Music, following industry trends. It is also reportedly working on original entertainment programming to rival the likes of Netflix and Hulu. Adding a game subscription service would similarly position it against rivals like Microsoft and Sony, which offer Xbox Game Pass and PlayStation Now, respectively.
The company recently announced it would be bringing in less revenue than expected, based on weak iPhone sales. That announcement was met with a hit to its stock value, so it makes sense for Apple to be looking into other new revenue streams.
This news comes just as more companies are looking into video game streaming as a potential model going forward. Last year Google partnered with Ubisoft to test Project Stream, allowing you to play Assassin's Creed Odyssey in your Chrome browser. Shortly after, Microsoft announced its own cloud-based streaming service, called Project xCloud, which promises console-quality games on PC, consoles, and smart devices. If that becomes the new frontier for competition among game publishers, Apple would be uniquely positioned thanks to its existing smart device business.
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