Apple's gaming subscription service Arcade is facing challenges with low engagement and revenue, primarily sustained by subscribers of the Apple One bundle package, according to recent industry reports.
The gaming platform, priced at $7 monthly as a standalone service, has encountered several obstacles since its launch. Most notably, developers partnering with Apple have reported issues with game discovery and delayed payments. Some industry insiders have even described working with Apple as an "abusive relationship."
While Apple aimed to create an alternative to the freemium gaming model dominated by in-app purchases, Arcade has struggled to gain traction as a standalone product. The service remains buried within the App Store's interface, making it difficult for users to discover new game releases.
Despite these challenges, industry experts believe Arcade shows promise. A potential solution could involve creating a dedicated app for the service, similar to Apple TV+, which would improve visibility and user engagement. This could transform Arcade into Apple's version of Xbox Game Pass, providing a centralized hub for gaming content.
The service's current integration with Apple One bundles, which include iCloud storage, Apple TV+, and Apple Music, has helped maintain its subscriber base. However, this arrangement masks the platform's difficulties in attracting dedicated gaming subscribers.
Recent exclusive game launches, including the first new Katamari Damacy title in nearly eight years, have been met with mixed reactions. Rather than generating excitement, these releases are often viewed as content locked behind a subscription barrier.
Apple's historical relationship with gaming has been tentative, despite Steve Jobs' earlier vision of making Mac "the best gaming platform in the world." While Arcade represented a step toward serious gaming commitment, its current state suggests a need for strategic reorganization to realize its full potential.