Pixel P&L: Report Exposes Apple Arcade’s Struggles

In our big story today, we’re diving into Apple Arcade’s recent struggles, which may prompt the tech giant to reevaluate its strategy. We also cover Savvy Games Group’s future M&A plans, inZOI topping Steam Wishlists, the upcoming Dune MMO’s monetization model, and more in today’s Pixel P&L.

/ Apple Arcade’s Future in Question as Report Highlights Profit Struggles

Apple Arcade is facing declining engagement and questions around profitability, according to a report from The Information. Sources claim the service “likely wouldn’t be profitable” if sold on its own, instead surviving thanks to its inclusion in all tiers of the Apple One subscription bundle. Most subscribers reportedly sign up for iCloud storage or Apple Music, with Arcade largely an afterthought.

Launched in 2019 with around two million users—roughly a quarter of them on free trials—Apple Arcade has struggled to expand its base. Its $6.99 monthly standalone price has failed to attract a sustainable audience, and its value proposition remains unclear in a crowded mobile and indie games market.

Developer sentiment has worsened over time. In two separate 2024 investigations, mobilegamer.biz reported delayed payments, shrinking payouts, and challenges in developing for Apple’s Vision Pro headset. One developer said that Arcade now had the “smell of death” around it, with multiple developers criticizing the platform’s poor discoverability and minimal support.

More concerning is Apple’s alleged treatment of developers leaving the platform. The company was reportedly described as “famously vindictive,” with some calling the relationship “abusive.” Arcade joins Apple TV+, News+, and Fitness+ as services under pressure amid the tech giant’s broader services push.

Tencent Profit Surges 90% as AI and Gaming Drive Growth

Tencent Holdings posted a 90% increase in fourth-quarter profit, reaching 51.3 billion yuan ($7.1 billion), surpassing analysts' estimates. Revenue rose 11% to 172.4 billion yuan ($23.8 billion), driven by Tencent’s enhanced AI-powered advertising platform and stronger performance from its video-gaming business. For the full year, profit climbed 68% to 194 billion yuan ($26.8 billion), with revenue up 8% to 660.2 billion yuan ($91.1 billion).

CEO Pony Ma Huateng credited Tencent’s AI efforts for boosting growth, highlighting the success of its Yuanbao chatbot and Weixin app. The company tripled capital spending to $10.7 billion last year to expand cloud computing and AI services, with plans to maintain similar spending levels this year.

Tencent’s gaming arm also performed well, bolstered by Dungeon & Fighter Mobile and the success of Black Myth: Wukong, a Tencent-backed title that sold 10 million copies in four days

Quick Bytes

Savvy Games Eyes PC and Console Expansion After Mobile Acquisitions

Savvy Games Group is exploring acquisitions in the PC and console gaming sector following its recent focus on mobile. Speaking to PocketGamer.biz at GDC, CEO Brian Ward reportedly said the company remains interested in expanding into the space but has yet to find a “super compelling” opportunity. “We’re still sort of working that out,” Ward said, noting that Savvy’s current priority has been supporting Scopely’s growth following its $4.9 billion acquisition in 2023.

Life-Sim Title inZOI Tops Steam Wishlists Ahead of Early Access Launch

Upcoming life-sim game inZOI has overtaken Hollow Knight: Silksong as the most-wishlisted title on Steam ahead of its March 28 Early Access launch. The shift reflects growing anticipation in the genre, with EA’s decade-old The Sims 4 showing limited innovation. While inZOI has drawn buzz as a potential successor to The Sims, early reactions have been mixed. Whether it can maintain momentum post-launch remains to be seen, but its rise highlights demand for fresh life-sim experiences.

Dune: Awakening to Launch May 20 With No Subscription Model

Dune: Awakening, Funcom’s upcoming multiplayer survival game, will launch in full on May 20, skipping Early Access. The title will follow a traditional business model, with no subscription fees and ongoing free updates. Players can purchase optional DLCs, with a Season Pass included in the Deluxe ($69.99) and Ultimate ($89.99) editions. Funcom cited its ongoing support for games like Conan Exiles as a model for Dune: Awakening, which will expand with new content post-launch.

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🎮 Play: Dead Cells, a brutally punishing yet wildly fun Metroidvania with a Roguelike twist. Killer aesthetics and a memorable soundtrack make this one stick with you.

😁 Laugh: I recently played Batman: Arkham Knight and this was exactly how it felt to collect all 200 riddler trophies to get the “true ending”.

📖 Read: Deconstructor of Fun’s excellent breakdown of how Istanbul Became the New Capital of Mobile Gaming

🛒 Buy: Future you’s spine will high-five us for suggesting the TROTTEN Standing Desk from IKEA.

💡Did You Know

NBA Jam, the iconic arcade game released in 1993, carries a chilling legend. Shortly after its release, Nets star Dražen Petrović tragically died in a car accident. Strangely, the game's announcer began randomly shouting "Petrovic! PETROVIC!" in demo mode — and only his name. Even NBA Jam's developers couldn’t explain it, with one claiming everyone "started losing their minds" when they first heard it. While theories point to a software glitch, no one truly knows why it happened. If you find an original NBA Jam machine today, don’t be surprised if you hear Petrović’s name echo from it.

📜 Quote of the Day

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