Games

Apple Arcade reportedly struggles as a standalone service, hit with ‘low usage and profits’

BBG News

Story Highlights

  • Reports suggest Apple Arcade struggles to stay profitable without the Apple One bundle.

Apple Arcade, often chosen by iOS gamers, provides an impressive array of games as part of its subscription service. However, despite appearing to be an excellent value, there are some underlying issues. It seems that Apple Arcade struggles when presented individually and may not function effectively without being bundled with other services.

Apple Arcade seemingly relies heavily on Apple One to maintain both user numbers and revenue

Based on a report from The Information, it appears that Apple’s standalone gaming subscription service may struggle to generate sufficient revenue. The reasoning behind this is that the success of Apple Arcade seems heavily reliant on the Apple One bundle to maintain both user engagement and financial stability. Without the Apple One bundle, it could prove challenging for Apple Arcade to cover its expenses.

In my initial remarks, I mentioned that things may not be flawless. However, Apple Arcade consistently provides robust choices each month, such as the recent addition of Piano Tiles 2 and an impressive April lineup featuring games like Katamari Damacy Rolling LIVE and puffies. Yet, it appears that this isn’t quite enough to satisfy everyone.

It’s slightly troubling to note that, despite the efforts mentioned earlier, the service appears to have low user interaction. Initially, it attracted approximately two million users in its first year, though only a fourth of these were on complimentary trials.

For a standalone cost of $6.99 per month, Apple One is more popularly chosen by many users due to its starting price of $19.95 per month. This bundle offers extra services such as Apple TV+, Apple Music, and iCloud+.

Developers had previously raised concerns about delayed payments, poor communication, and lack of support

Approximately a year back, developers collaborating on Apple Arcade started expressing worries about late payments, inadequate communication, and insufficient technical assistance. They shared experiences where Apple would disregard emails for extended periods, while meetings turned out to be fruitless and chaotic.

Some have likened collaborating with Apple to a “toxic partnership,” underscoring the challenges faced by developers working on Apple Arcade and Vision Pro projects. Given these deep-seated problems, it could prove challenging for Apple Arcade to launch superior products, particularly since it’s yet to establish a strong foothold in terms of user base.

The report additionally highlights issues affecting other Apple services. Specifically, it suggests that Apple TV+ is experiencing annual losses of approximately $1 billion. Although Apple Arcade continues to expand with new games and features, its long-term viability as a standalone service remains uncertain. Here’s hoping for better days ahead.

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2025-03-25 17:11

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