Apple is spending $500 million on "Arcade" gaming service

Apple is spending $500 million on

The service will launch in fall and, by the looks of it, the company is now investing heavily into making it successful: according to a report from The Financial Times, Apple is pouring in no less than several millions each in over 100 games.

Arcade is set to arrive this fall and will let users play exclusive games ad-free on mobile, desktop, and Apple TV - meaning you can stop playing on one device, and pick up where you left off on another. Brands like Disney, Konami, Sega, as well as smaller shops that have done well in Apple's App Store like ustwo (which developed the hit game Monument Valley ), are all said to be taking part in Apple Arcade. According to certain sources that spoke to the FT, several of whom are involved in the Arcade project, the company is spending several million dollars on for each of the games that will populate the platform.

At the launch of the service last month, where Apple also showed off its much-hyped TV+ service, the company confirmed that Arcade will be integrated into the App Store and won't feature any advertisements or in-app purchases. But to establish itself in the market, Apple is having to make substantial upfront investments without knowing whether Arcade will be a success. The total budget is expected to clear $500 million.

Of course, both Sony and Microsoft also have competing subscription services in PlayStation Now and Xbox Game Pass. Users will be able to play these games in the offline mode as well. All games on Apple Arcade are handpicked by the company and the option to play and access these will be limited to the company's devices. They estimate that Apple could earn revenues of around $370m from Arcade service in 2020, which will increase to $4.5bn by 2024.

The service, which was announced at the Apple event in March, is launching sometime between September and November this year.

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