Pixel P&L: Apple's First Gaming Acquisition Was a 2-Person Team
After decades of avoiding gaming acquisitions while competitors spent billions on studios, Apple finally made its move. The target? RAC7, a two-person Canadian team whose biggest hit features a mischievous sasquatch stealing food from campers. The purchase price wasn't disclosed, but given the team size, it likely cost Apple less than a Super Bowl commercial. Sometimes the most disruptive tech moves come in the smallest packages.
In today's email:
🍎 One Small Bite for Apple, One Giant Leap for Sasquatch-kind: Tim Cook's first gaming studio buy stars a furry food thief
📚 Manga-ing Expectations: Why expensive digital comics crashed and burned in price-sensitive markets
🎮 São Paulo or Saw Problem?: Brazilian devs revolt against Gamescom Latam's booth-rental bonanza
Apple Makes First Gaming Studio Acquisition With RAC7 Purchase
Apple acquired RAC7, the two-person developer behind popular Apple Arcade title "Sneaky Sasquatch," in the tech giant's first-ever video game studio acquisition, according to Digital Trends.
The deal underscores Apple's commitment to its subscription gaming service as the company seeks to diversify revenue streams beyond hardware sales. RAC7's adventure game became one of Apple Arcade's standout titles since the service launched in 2019 with 71 games.
"We love Sneaky Sasquatch and are excited that the 2-person RAC7 team has joined Apple," a company spokesperson said, emphasizing the unique nature of the acquisition.
Apple characterized the purchase as an exceptional circumstance rather than a strategic shift toward acquiring gaming studios. The company said it plans to continue partnerships with external developers for its $4.99-monthly Arcade service.
The acquisition comes as Apple faces direct competition on its own devices from Netflix Inc., which offers mobile games to its subscribers, allowing Netflix users on iPhones and iPads to access a rival gaming library that competes with Apple Arcade on Apple's own hardware ecosystem.
📚 On Our Radar: Manga Planet's India Exit Signals Pricing Perils
Is expensive, complex pricing the kiss of death for content platforms in emerging markets? Manga Planet's decision to shut down its India operations after just 18 months offers a lesson about monetizing digital content in price-sensitive markets.
The platform, backed by major Japanese publishers Kodansha and Ichijinsha, will close on June 1 after struggling with its point-based purchasing system. Accessing a complete series like "Fire Force" costs users approximately INR 28,600 ($341), even with discounted bundles. Meanwhile, competitors like Manga Plus charge just INR 99 monthly, while Shonen Jump costs INR 299 for monthly access.
This pricing disconnect proved fatal despite promotional campaigns including partnerships with Japan's development agency JICA. The platform required users to navigate complex virtual currency with starter packages at 255 rupees for 300 points, creating psychological barriers that straightforward subscriptions avoid.
Manga Planet's exit highlights how critical localized pricing strategy becomes when entering price-conscious markets like India, regardless of content quality or publisher backing.
⚡Quick Bytes
Brazilian Developers Criticize Gamescom Latam Treatment
Over 250 Brazilian developers signed an open letter criticizing their treatment at Gamescom Latam, citing 12-hour booth requirements, expensive rentals and inadequate support. The complaints contrast with better treatment afforded international guests at the São Paulo gaming conference, which drew record attendance exceeding 130,000 visitors in early May.
Clair Obscur: Expedition 33 hits 3.3 million sales
French studio Sandfall Interactive's Clair Obscur: Expedition 33 sold 3.3 million copies exactly 33 days after its April 24 release, the developer said. The critically-acclaimed role-playing game, which earned a 92 Metacritic score, excludes additional Xbox Game Pass downloads from the sales figure.
Nintendo Switch 2 Units Obtained Early Require Updates to Function
Some consumers have obtained Nintendo's Switch 2 console ahead of its June 5 launch but cannot use the device without a mandatory system update, marking the first time a gaming console has required a day-one patch to function, similar to practices now common with video game releases. The practice represents a significant shift for Nintendo, which has traditionally shipped consoles ready to play out of the box.
⚔️Side Quest
📺 Listen: Epic Games CEO Tim Sweeney discusses Fortnite's billion-dollar success, the strategic battle against Apple's 30% fees, metaverse monetization models, and why creator economies will reshape gaming. Essential insights on platform competition, cross-platform strategies, and emerging revenue streams in the gaming industry.
🎮 Play: Claim this spectacular and grotesque single-player FPS masterpiece free with your Prime account. Wolfenstein II delivers over-the-top Nazi-killing action paired with a fantastically written story about resistance and revolution that's bloody and cathartic but never crass.
📚 Read: A brutal but necessary autopsy of how Finland's game industry went from global powerhouse to cautionary tale by blindly copying Supercell's culture without understanding the business fundamentals underneath, essential reading for anyone who thinks work-life balance and "creative purity" alone can compete in today's cutthroat mobile market.
💡Did You Know
Did you know that Pac-Man is the best-selling arcade game of all time, with over 400,000 units sold generating $6 billion in revenue, which translates to approximately $19.5 billion in today's money?
📜 Quote of the Day
“The important thing is not how long you live... It's what you accomplish with your life. While I live, I want to shine. I want to prove that I exist. If I could do something really important... That would definitely carry on into the future.”
- Grovyle, Pokémon Mystery Dungeon: Explorers of Darkness/Time
Join hundreds of top industry executives who rely on us to stay up to date with the latest industry developments and sharpest insights.
A daily dose of gaming, esports and youth culture industry information.
Delivered to your email once every weekday.
Free of cost.
