Apple Arcade, Apple’s gaming subscription service, has been grappling with low user engagement and profitability challenges since its 2019 launch. Recent reports indicate that without its inclusion in the Apple One bundle, the service would likely be unprofitable.
In its inaugural year, Apple Arcade attracted approximately 2 million users, with about 25% on free trials. This modest uptake has raised concerns about the platform’s viability as a standalone service. Industry insiders suggest that the service’s sustainability heavily relies on its integration into the Apple One subscription bundle, which packages Apple Music, Apple TV+, Apple Arcade, and iCloud storage at a discounted rate.
The Apple One bundle, introduced in 2020, offers three tiers—Individual, Family, and Premier—providing varying combinations of Apple’s services. This bundling strategy aims to enhance user adoption across services that might not thrive independently.
Developers have also expressed concerns regarding Apple Arcade’s financial ecosystem. Initial generous payouts have reportedly diminished over time, leading to project cancellations and a sense of uncertainty among game studios. One developer described the service as having “the smell of death” around it, reflecting diminishing enthusiasm within the development community.
Despite these challenges, Apple continues to support and expand Apple Arcade. In January, the company added ten new games to the platform, signaling an ongoing commitment to its gaming subscription service.
The broader context reveals that other Apple services, such as Apple TV+ and Apple News+, are also facing profitability issues. Reports indicate that Apple TV+ incurs annual losses exceeding $1 billion, capturing less than 1% of total monthly streaming viewership. These challenges underscore the critical role of the Apple One bundle in bolstering the financial performance of Apple’s service ecosystem.
