Apple Buys Its First Ever Video Game Studio

Core Insights - Apple has acquired the two-person game studio RAC7, known for creating the Apple Arcade exclusive game Sneaky Sasquatch, to enhance its mobile gaming offerings [1][2][3] - The acquisition aligns with Apple's strategy to expand its presence in the profitable mobile gaming industry, which generated approximately $90 billion in revenue in 2023, accounting for about half of all gaming revenue [3][4] Company Strategy - Apple aims to support RAC7 in further developing Sneaky Sasquatch and plans to continue collaborating with third-party studios to enrich the Apple Arcade game library [2][3] - The move is consistent with industry trends where companies like Netflix and Microsoft have also acquired gaming studios to bolster their gaming services [3] Industry Context - Mobile gaming is a highly lucrative sector, and Apple's investment in RAC7 reflects its intent to capitalize on this growth opportunity [3][4] - The acquisition may lead to a more robust gaming experience for Apple Arcade users, enhancing the platform's appeal in a competitive market [2][3]