Hello everybody. So my name is Adrianna Lewis and I am part of the content strategy and acquisition team here at Apple Arcade. So many of you have likely heard of arcade or even have active games here on the service, but if you don't today, I have the great privilege to share with you all what arcade is all about.So the goal of arcade has always been to create the next generation arcade by offering fun, safe and unforgettable gaming experiences. But before I dive in, here's a short video showing a compilati ...

Core Insights - Apple's strong game content portfolio is driving growth in its paid subscriber base, which saw double-digit growth year-over-year in Q3 fiscal 2025 [1][9] - The Services segment accounted for 29.2% of total sales in Q3 fiscal 2025, with revenues reaching $27.42 billion, a 13.3% increase year-over-year [4][9] - Apple is facing significant competition in the gaming market from companies like Electronic Arts and Take-Two Interactive, which are performing well with their respective titles [5][6] Game Portfolio and Subscriber Growth - Apple Arcade currently offers over 200 games, with new titles such as NFL Retro Bowl '26 and Jeopardy! Daily set to launch in September [1][2] - The introduction of the Apple Games app allows users to access all their games in one place, enhancing user engagement [3] Services Revenue and Growth Projections - The Zacks Consensus Estimate for fiscal 2025 Services sales is projected at $108.48 billion, indicating a 12.8% growth from fiscal 2024 [4] - Continued expansion of services like Tap to Pay and Wallet, along with strong demand for Apple TV+ content, are key drivers of revenue growth [4] Competitive Landscape - Electronic Arts reported a 27% year-over-year increase in full-game net bookings in Q1 fiscal 2026, driven by digital downloads [5] - Take-Two Interactive experienced a 14% year-over-year growth in recurrent consumer spending, highlighting its monetization strength [6] Stock Performance and Valuation - Apple shares have declined 7.3% year-to-date, underperforming the broader Zacks Computer and Technology sector, which has returned 13% [7] - The stock is trading at a forward 12-month price/earnings ratio of 29.85X, compared to the sector's 27.71X, indicating a premium valuation [11] - The Zacks Consensus Estimate for fiscal 2025 earnings is $7.35 per share, reflecting an 8.9% year-over-year growth [12]