According to a new report, Apple considered and was discussing whether it should launch a Stadia-like cloud gaming service to better compete with Xbox Cloud Gaming and Google’s own Stadia gaming services.
The report was posted by Mark Gurman’s “Power On” newsletter that explained that Apple considered launching a cloud gaming service to compete with other large companies and stream games to its users using the internet.
In the Power On newsletter, Mark Gurman states the following (via MacRumors):
“Apple’s gaming service is somewhat unique, relying on games that run on its devices natively rather than from the cloud. Microsoft Corp., Nvidia Corp., Google and others have launched gaming services that run from the cloud. That allows support for a wider range of games and creates a “Netflix for games”-like experience. Oddly, Apple doesn’t allow those rivals to join Apple Arcade on the App Store. The company says that’s not because they’re competitors, but simply because it doesn’t allow all-you-can-eat cloud gaming services on its devices. Despite that, the company in the past has internally discussed the prospects of launching such a service, I’m told. I just hope that if Apple does, it then greenlights its rivals’ participation too.”
Up until now, Apple focused on its Apple Arcade service that lets users directly download games onto their Mac or iDevices and install them directly. The Arcade service offers an ad-free experience and no in-app purchases for a flat fee of $4.99 per month, which is very competitive and very similar to Google’s Play Pass service. Apple also offers the service in its Apple One bundle that combines multiple services and discounts it slightly compared to being subscribed to each service individually.
It’s not clear why Apple decided against moving into the cloud gaming sector, but it may be because as it doesn’t feel the internet speed, latency, and overall performance are enough to provide a great experience to the majority of its users. We may see Apple enter the market sooner or later whenever it feels the internet has matured enough that people can take advantage of its cloud gaming services. Currently, there are some rumors that Apple may be working on a Nintendo-like Switch device.