Please ensure Javascript is enabled for purposes of website accessibility

Apple Reportedly Changing the Strategic Focus of Apple Arcade

By Eric Volkman – Updated Jul 1, 2020 at 8:36AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company thinks that some games under development lacked "engagement."

Apple (AAPL -2.98%) apparently believes that adjustments are in order for Apple Arcade. According to a report from Bloomberg citing "people familiar with the matter," the company has modified the development strategy for its gaming subscription service.

The tech giant wants to change its development slate to concentrate on games that have a better chance at retaining subscribers. Retention is key to a subscription service like Apple Arcade; if customers lose interest, it's very possible they will abandon the platform.

The article's sources added that Apple canceled development contracts with several game studios earlier this year. Apparently, the company told some that the titles they were developing lacked the "engagement" needed to retain subscribers. It has notified them of its new approach. No specific examples were cited, and none of the developers concerned were identified.

Apple Arcade game Enchanted World being played on a phone.

The Apple Arcade game Enchanted World. Image source: Apple.

Apple Arcade is one of many efforts by the company to reduce its dependence on sales of hardware such as the now 13-year-old iPhone line.

The gaming service was launched with characteristic Apple bravado last September and costs $4.99 per month for a subscription (inexpensive considering the company's premium prices for its goods), with the first month free. Late last year, it began offering an effective discount with a $49.99 annual subscription option.

In contrast to its generally hands-off approach to third-party app development, the company has been directly involved in the development of games for Apple Arcade. Over 100 titles of various types and genres can be accessed through the service.

Apple has not released subscriber numbers for Apple Arcade. It also hasn't yet commented publicly on the Bloomberg report.

On Tuesday, Apple's stock inched up by 0.8%, lagging the gains of the major market indexes.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$141.09 (-2.98%) $-4.34

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.