Apple Planning A Netflix-Like Subscription Service For Video Games

Mobile gaming has become one of the most financially important parts of the video game industry, but Apple has yet to fully embrace games as a company. That could change in the near future, as Cheddar reported on Monday that the iPhone maker is planning a subscription service that could act like Netflix, but for mobile games.

The most pertinent details, like subscription price and the kinds of titles Apple would offer, are still up in the air, according to Cheddar’s report. The company has reportedly been talking to video game publishers since at least the back half of 2018 about the potential subscription service.

Apple could even publish some games, per Cheddar. That would be a sharp pivot from a company that has, up until now, been somewhat hands-off with an industry that has flourished on its mobile platform. Apple could secure platform exclusivity for games by acting as a publisher.

One potential problem with Apple’s idea is that the kinds of games that have historically done well on iOS are free-to-play to begin with. “Fortnite,” for example, has grossed hundreds of millions of dollars on iOS alone for publisher Epic Games.

Apple could theoretically offer free in-game currency or exclusive items in games like “Fortnite” for subscribers, but that may not be enough to incentivize large numbers of people to subscribe.

It is easy to see why Apple is exploring this idea, though. Subscription services are close to becoming the norm in the video game industry, as all three major console manufacturers now offer something similar to what Cheddar’s report describes.

Xbox Game Pass allows Xbox owners to play more than 100 Xbox, Xbox 360, and Xbox One games for a monthly fee. PlayStation Now is a similar service, but for PlayStation 4 owners. Finally, Nintendo Switch Online has a growing selection of retro Nintendo Entertainment System games that subscribers can play.

Both PlayStation Now and Xbox Game Pass have become lucrative revenue streams for their respective companies.

A gaming subscription service would fit into Apple’s booming services sector. Apple made nearly $40 billion in revenue from services alone in 2018, per Cheddar, so it makes sense that the iPhone maker would explore more opportunities along those lines.