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News January 29, 2019

Report: Is Apple planning a gaming subscription service?

Staff Writer
Report: Is Apple planning a gaming subscription service?

Game streaming is seen as a key to major future growth, so it’s not surprising that Apple began conversations with game publishers last year to create a “Netflix for games”.

Like Apple Music, it would allow subscribers access via their iPhone, iPad and, where available, tvOS and macOS titles.

The report, which surfaced in Cheddar overnight, emphasised that discussions are still in their tentative stages and the tech giant has no timetable to launch the service.

Apple’s earlier attempt to turn the Apple TV into a gaming device failed after a lukewarm response from developers.

But analysts say it makes sense: most of the App Store’s revenue comes from games, and subscription may be a successful way to monetise on mobile.

Cheddar said: “A subscription service for App Store games could provide a boost to Apple’s recurring revenue at a time when iPhone sales are slowing and gaming and esports are booming.”

“Game streaming services will be the ultimate driver of a rapid transition from the sale of games in boxes to digital consumption,” Yosuke Matsuda, president of game company Square Enix, said this month in a 2019 analysis.

“Streaming also lends itself to new subscription-based business models, so we believe deciding how to engage with these forthcoming trends will be key to future growth.”

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