Apple Cancels Developmental Contracts With Game Developers

In the wake of a new strategy to increase subscribers, Apple Inc. has announced significant changes to the strategy of Apple Arcade gaming service and to start; they have cancelled contracts for games that are still in the development stage. An investment follows this in other titles that the company feels will affect increased subscribers. A California-based technology giant, The Cupertino, announced the scrapping of contracts with multiple game studios. The people involved and affected were informed on the latest developments and new approach of the company.

Apple is looking to get people hooked!

The new approach is obtaining titles with a high retain percentage of users. A creative producer at the Apple Arcade, in mid-April was reported to have told developers that their upcoming games did not have the level of “engagement” that the company required. This is all being done to increase the number of users that play beyond the free trial, and the service becomes feasible to run for the tech giant.

Known for the smooth interface

The reason why Apple Arcade is different from other competitive platforms is that its interface is very smooth, and there are no in-app purchases or ads. The revenue stream for the company is a subscription-based one like most Apple services. Apple aims to make this service available in a way that profits both the customer and the company.

The level of “engagement” is key.

The company’s new policy, in essence, is increasing the time the player spends on the platform, which they call the level of “engagement”. If any developers are thinking about what is the bar set by Apple for this, the company answered Capybara Games’ Grindstone. A brilliant multi-level puzzler, this is a model of what Apple Arcade is looking for according to one of their representatives.

There are reports of developers suffering  

According to this report, Apple paid the affected studios for meeting developmental milestones, and it told developers that it would work with them in the future if they meet Apple’s requirement for engagement. However, Bloomberg reported that there were some developers whose cancelled contracts will result in serious financial woes. They can still by releasing their games on other competitive platforms like Android, Play Pass, but they won’t be enough to cover the losses incurred. The revenue stream for play pass is also based on engagement metrics instead of upfront negotiations like Apple.

Most games are exclusive to the platform

The quality of games that Apple Arcade provided was a major reason why the service took off in late 2019. But another reason was the introductory free month trial, which did not result in retained customers as was expected. Apple Arcade costs $4.99 for each month and $49.99 for the year, so the steep pricing might also be a reason for the low retainment.

The method of measurement of engagement is going to be crucial for developers to keep up with. Apple won’t back down from restricted revenue streams already announced as benefits. The ads and microtransactions are a strict no-no.

So, let’s see how Apple tackles this and keeps the platform afloat.

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Source: Apple Cancels Developmental Contracts With Game Developers

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