In short, Apple Arcade failed to deliver on its promise of being a Netflix-style gaming subscription service for iOS, providing access to hundreds of fun premium games devoid of monetization hassles. It struggled to drive sustained subscriber growth after an initial splash due to a lackluster library of exclusive games, stiff competition, and fundamental flaws in Apple‘s walled garden approach.
The sparse and stale game library
The most glaring flaw of Apple Arcade since launch has been its lackluster library of games that consistently fails to impress or excite subscribers.
As you can see in the chart below, Apple Arcade had only about 180 games in its catalog in January 2022, barely growing from the 150 it launched with. That‘s paltry compared to the hundreds of titles offered by Xbox Game Pass, PlayStation Now, and similar services:
| Service | Launch Year | Game Library Size |
| Apple Arcade | 2019 | 180 |
| Xbox Game Pass | 2017 | 400+ |
| PlayStation Now | 2014 | 700+ |
The trickle of new releases means subscribers blow through Arcade‘s catalog quickly, with little new content to return to month after month. This lack of sticky value makes it easy for people to cancel their subscription once the novelty wears off.
And while competitors offer major exclusive blockbusters, Arcade‘s titles are predominantly ports of older indie games that most iOS gamers have already played elsewhere. There are no system-seller exclusives on par with the latest Halo or God of War games which make subscriptions like Game Pass must-have services for gamers.
Stiff competition from Microsoft
Arcade‘s anemic library is especially evident when you compare it to Microsoft‘s Xbox Game Pass. For a similar $9.99 monthly fee, Game Pass grants access to over 100 popular console and PC games from major publishers like EA, Bethesda and Sega.
The sheer variety and quality of Game Pass‘ catalogue blows Apple Arcade‘s offering out of the water. And Microsoft invests heavily in landing new exclusives and marquee titles on Game Pass the very day they release, attracting far more subscribers than Apple‘s release schedule of ports and mobile-calibre games.
Game Pass raced to 25 million subscribers by early 2022, while analysts estimate Arcade sits around just 10-15 million. And Game Pass revenue is projected to hit $2.9 billion in 2022, dwarfing Arcade‘s $774 million. Apple is falling farther behind.
Flawed monetization and policies
Apple‘s restrictive policies and inconsistent monetization has also pushed many developers away from supporting Arcade. The company offers little transparency into how subscription revenue is shared with developers, and requires games be offline and exclusive to Arcade.
Most developers stand to make significantly more money releasing titles on other app stores with transparent 70/30 revenue shares and the ability to maximize profits across platforms and business models. That‘s why you won‘t find many blockbuster mobile titles choosing to go all-in on Apple Arcade exclusivity until Apple fixes these issues.
Hardware and performance problems
In addition to its weak content library, Apple Arcade faces performance issues on older iPhone and iPad models, limiting its accessible user base. Many games suffer crippling lag and frequent crashes on devices before the iPhone XS generation.
This negates Apple‘s promise of delivering a smooth premium gaming experience to all iOS users. And it locks out users unable or unwilling to keep buying Apple‘s latest expensive phones every year.
Philosophical mismatch
More fundamentally, Apple‘s closed off, meticulously curated walled garden approach does not align with the open nature of the wider gaming market. Unlike Apple, Microsoft and Sony actively court third party developers to bring titles to their platforms.
Apple wants control over every aspect of Arcade, from development to publishing to policies. This arrogance and insistence on doing things their own way costs Apple support from the top developers that their competitors collaborate with successfully.
Unless Apple starts listening to developers‘ complaints and feedback, Arcade will continue bleeding both content and subscribers. The middle ground compromise between Apple‘s walled garden and the open gaming market continues to elude the company.
The future looks dim without change
Analysts and industry insiders predict Apple Arcade will continue to languish unless dramatic changes are implemented. As seen below, Arcade‘s average Metacritic review score across its game library has declined every year post-launch as stale content piled up.
| Year | Average Metacritic Score |
| 2019 (Launch) | 78% |
| 2020 | 72% |
| 2021 | 70% |
Apple needs to significantly increase investment in exclusive content, deliver on technical performance, open up monetization, and start embracing external partners if they hope to turn Arcade into a subscription gaming force. Otherwise, the service seems destined to become yet another forgotten sidenote in Apple‘s history.
But for now, Arcade remains a lackluster deal compared to the competition. Unless you‘re an extremely casual iOS-only gamer, your money is likely better spent elsewhere. Sorry Apple, but back to the drawing board on this one.
