Cupertino giant, Apple was seen working on a games service subscription for their App Store. This planned service might function similar to the way ‘Netflix for games’ does, and might allow users to pay a regular subscription fee for a variety of titles. Apple was seen talking to game developers since the second half of 2018 with regards to such a service but no details regarding cost or games has been revealed yet.
A report from Cheddar stated that- “The service is still in its early stages of development and the company might as well decide against it. The sales of iPhone have gone down, and the company has been looking for other ways to continue their growth, like partnering with carriers of Apple Music, video streaming and news subscription services.“
Brandon Ross, an analyst at BTIG that covers the video game industry, during a conversation with Cheddar said- “The vast majority of the revenue that comes out of the App Store is games. Subscription has proven to be one of the successful ways in monetizing on mobile. Nothing regarding games has been proven apart from a few success from Microsoft, Sony, and Electronic Arts.“
With the help of such a service, iApple could give developers more than the standard 70 percent cut from revenues. It could take a 30 percent cut of all App Store purchases even though it lowers this amount by half after the first year subscription, which puts a striking distance of the Epic Games Store’s 88 percent, which is currently on PC along with the plans for an Android launch this year.
Currently, the subscription services on mobile are limited to local efforts which require partnerships with telcos. Mumbai-based Indiagames, for example, can run their own games subscription service for feature phones by the name Games on Demand like how Nazara did with Nazara Club whereas Android phones could have the likes of Zapak and Gamesbond. Apple could quite likely do the same with their iOS. It will be interesting to see how it works and how big publishers like Ubisoft will voice their concerns regarding the existing subscription services like Xbox Game Pass and PS Now.
Ubisoft’s Chris Early during a conversation with GamesBeat said- “I actually view subscription gaming as an inhibition to our progress, and I have two examples. One is with PS Now. I think that it is a great technology that allows streaming content to people, but we don’t make the money as a publisher, we don’t make the same amount of money as we would even if we would put stuff on sale. So why should we even bother, from a publisher’s standpoint? The technology is great for a gamer. I have the option of playing anything anywhere instantly! It is an awesome technology, and it has is inhibited the business model. So charge a PlayStation Plus add-on will be able to stream any game to the user’s very own device they own. This is a great service for the player. It will make people adapt to such a streaming concept in more places. They will be able to get to a place where they will have more people who are focused on streaming.“