Just over a week ago, Microsoft CEO Satya Nadella revealed that Microsoft wants to be the Netflix of games with its streaming service. But it seems that Microsoft isn't the only one, as Apple is also reportedly working on its own game subscription service.
That information comes from five anonymous sources familiar with the matter. The sources claim that Apple's game subscription service would allow users to pay a monthly subscription fee in order to access a library of games. The sources also reveal that while the project is still in the early stages of development, Apple has been talking to mobile game developers.
Moreover, the iPhone creator has apparently considered partnering with these studios as a publisher. This would allow developers to benefit from Apple's long marketing reach and its financial resources. Plenty of mobile app developers utilize methods such as App Store Optimization (APO) and advertising to make their apps a success. However, with Apple pushing a game through its marketing channels, including featuring it on the front page of the App Store, a game would stand a much better chance at becoming a mobile gaming hit.
The report is unconfirmed for now, but it makes a considerable amount of sense. The report comes as Apple's competitors are also planning to launch their own game streaming or game subscription services. In addition to Microsoft's Project xCloud, there is Google's Project Stream, and Amazon is working on a streaming service as well. By tying users to a subscription service, it will increase their loyalty and make them far more reluctant to spend on products and platforms from competitors.
It also follows Apple's confirmation that iPhone sales are down. While its hardware struggles, Apple plans to turn to services to bolster its revenue. The company already makes a considerable amount of money from the App Store, taking a cut each time someone purchases a game or even a microtransaction in a game. Its music streaming service Apple Music also makes money, as people pay a monthly fee to stream as much as they like.
An Apple game subscription service could become the company's next cash cow, allowing it to make money from people who subscribe and from in-game purchases, too. It's unclear when Apple might announce or launch said service, but it seems likely that it does exist.