Arcade: Apple Shuffles To Get The Strategy Right (Video)

It looks like Apple Arcade has accumulated more failures than successes in its short lifespan of less than 1 year. Now, Apple needs to “change the tires with the vehicle in motion”.
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The problems keep rolling in. First, Apple Arcade suffered from unenthusiastic reviews. Then, users seemed unhappy that new titles were not being introduced fast enough, as originally expected.

Now, the Cupertino company is pulling the plug on several developer contracts. Allegedly, Apple is looking for “titles that will keep users hooked, so subscribers stay beyond the free trial of the service”. Apparently, the company is not getting enough of it from its developers.

It seems clear that Apple Arcade is going through an identity crisis of sorts and looking for a new direction. In the process, developers claim to be “faced with financial woes, compounded by the pandemic” – in yet another clash between Apple and its independent app and software makers.

Does it matter?

A question that may be lingering in investors’ minds is: does Apple Arcade even matter? My best answer to this one is “maybe”.

I discussed in my most recent Apple Arcade article that this new venture would probably amount to a mere 1% of 2020 revenues. That is, if the platform can rake in my projected 12 million subscribers. Add in the cost to run it, and we are probably looking at a minimally profitable business.

So for now, I believe that the appeal of Apple Arcade is largely as another piece of the ecosystem puzzle. Should the gaming platform ever become popular and more desirable by gamers, consumers will be more willing to own an Apple device and spend more time on it.

Don’t forget to watch the video above.

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