dogloose

Apple is working on a games service subscription for the App Store. This planned service would function like a 'Netflix for games', allowing users to pay a regular subscription fee for a host of titles. It seems that Apple has been talking to game developers since the second half of 2018 regarding the service and it's unknown how much it would cost or what games Apple would have. It has also considered working as a publisher for certain developers, which could mean the company would want to take on distribution, marketing, and other costs for certain titles.

A report from Cheddar citing "five people familiar with the matter" states that the service is in the early stages of development and Apple[1] may decide against it. With iPhone[2] sales slowing down, the company is looking at other ways to continue growing what with plans for a video streaming service, partnering carriers for Apple Music[3], and a news subscription service as well. 

"The vast majority of revenue coming out of the App Store is games," said Brandon Ross, an analyst at BTIG that covers the video game industry, in conversation with[4] Cheddar. "Subscription has proven to be a successful way of monetising on mobile. It is completely unproven in games except for some minor success from Microsoft, Sony, and Electronic Arts."

Through this service, it could be possible for Apple to give developers more than the standard 70 percent cut from revenues. It takes a 30 percent cut of all App Store purchases though it lowers that amount by half after the first year of subscription, putting it in striking distance of the Epic Games Store's 88 percent[5], it's currently on PC with plans...

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