Apple goes big on video games
Apple is understood to be spending hundreds of millions of dollars to acquire titles for its Arcade video game streaming service.
The Financial Times reports that the tech giant is making a big bet on games, following the unveiling of Arcade last month in California.
Apple is taking on existing players such as Sony, Microsoft, and Nintendo in its fight for the increasingly competitive but highly valuable video games market.
But it will also face competition from new entrants including Google and Tencent, both of which are developing their own platforms.
HSBC predict that gaming could be worth almost $5 billion to Apple by 2024, but in order to make the model work it is having to invest heavily in the immediate term.
Inventory is seen as a crucial factor in success, with consumers likely to choose their preferred platform based on the titles it offers.
Apple’s investment comes during a period of growth for the UK video games market. As previously reported, games were worth a record £5.7 billion to the UK ecomomy in 2018, up 10 per cent on the previous year.