Apple Arcade: The New Ecosystem
For the past two weeks or so I’ve been extremely addicted to playing this game called Crossy Roads Castles. It serves as a simple activity that can be had with friends across the screen, better adjacent to a Facetime call. I’ll have time to rave about the game in a later post, but one thing I noticed is that the game doesn’t offer any in-app purchases (I wanted the llama really bad). This piqued my interest as I began to explore what was seemingly a new ecosystem of mobile game development. I sat down with fellow Lehigh alum and Apple PM Irene Gao to understand more about the ecosystem of Apple Arcade.
Apple incentivizes certain developers to create titles exclusive to Apple Arcade. In my specific example, Hipster Whale, the developer of the popular platforming mobile game Cross Roads, was encouraged to release their next Crossy title exclusive to Apple Arcade. The ecosystem works as follows, let’s start with the incentives:
Upfront Funding: Apple provides funding to developers for the development of games for Apple Arcade. This can cover various stages of game development, reducing the financial risks for developers and allowing them to focus on creativity and innovation without the immediate pressure of monetization through in-app purchases.
Revenue Share from Subscriptions: Developers receive a share of the revenue generated from Apple Arcade subscriptions. This revenue share model is based on various factors, including the engagement time or popularity of their games within the service, offering developers a continuous revenue stream as long as their games remain popular among subscribers.
Exposure and Marketing: Being part of Apple Arcade gives developers significant exposure through Apple’s marketing channels. Apple promotes Apple Arcade games through the App Store, online, and in various other marketing materials. This exposure can lead to increased recognition and prestige for developers and their games.
Support for Quality Control: Being part of Apple Arcade ensures that games meet high-quality standards, as Apple is known for its stringent app review process. Developers also receive support from Apple in terms of development tools, resources, and potentially in resolving technical challenges.
In return, Apple has some requirements for developers as well:
Exclusive to Apple Arcade: Games developed for Apple Arcade must not be available on any other mobile gaming service. This exclusivity helps ensure that Apple Arcade offers unique content, enhancing its value proposition to subscribers who are looking for novel gaming experiences they can't find anywhere else.
Free of Ads and In-App Purchases: Apple insists that games on its Arcade platform must offer a seamless, uninterrupted gaming experience. This means no advertisements to detract from the game or in-app purchases to progress or unlock content, ensuring that the focus remains solely on the enjoyment and completeness of the gaming experience.
Family-Friendly: Ensuring that content is suitable for all ages, Apple Arcade games must adhere to guidelines that promote inclusivity and safety. This commitment not only broadens the platform's appeal but also aligns with Apple's broader mission to provide entertainment that can be enjoyed by the whole family.
Cross-Platform Compatibility: To cater to the diverse ecosystem of Apple products, games on Apple Arcade are required to support seamless play across iPhones, iPads, Macs, and Apple TVs. This interoperability ensures that users can enjoy their favorite games on any device, anytime, enhancing the unified Apple ecosystem experience.
My dive into Crossy Roads Castles illuminated a fascinating ecosystem that contrasts drastically with the conventional game development market. Now don’t get me wrong, paying developers for exclusive access to their titles has been around since the early 2000s. However back in those days, these exclusive deals usually meant acquiring a stake in the studio or simply buying them outright, notably Microsoft’s deal with Bungie for Halo and Sony’s deal with Naughty Dog in response. Xbox and Playstation are no strangers to the subscription service either, with each launching their own platforms: Game Pass and Plus respectively. However, both have been severely outclassed by Arcade in terms of metrics. In a study done by iMore in 2023, Apple Arcade has reached a subscriber count past 100 million, stark contrasts with Game Pass’s 25m and PS Plus’ 45m (to be fair, the amount iPhones in the world drastically outpace the number of gaming consoles.) No matter what, the growth of Apple Arcade suggests the beginning of a shift in how games are developed, distributed, and consumed. The rise of subscription services may lead to a more sustainable model for mobile game development, where consistent revenue streams support ongoing content creation and innovation. However, it also poses limitations in revenue potential compared to traditional models. Does it also limit game diversity with it’s restrictions? In addition, it also remains to be seen whether this format is the right direction for bigger developments such as AAA titles. What do you think?