APPLE VENTURES INTO GAMING WITH FIRST STUDIO ACQUISITION: RAC7

Fifteen years ago, Apple redefined mobile entertainment with the iPhone, turning smartphones into gaming consoles for millions.

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Earlier today, the company took a bold step into the gaming world by acquiring RAC7, a two-person indie studio behind the Apple Arcade hit Sneaky Sasquatch, marking its first-ever purchase of a video game developer.

Rather than chasing blockbuster studios, Apple has chosen a small team known for crafting quirky, beloved titles, raising questions about its ambitions for Apple Arcade and beyond.

With Sneaky Sasquatch’s enduring popularity since its 2019 debut, the acquisition is less about revolutionizing gaming and more about nurturing a niche gem. This narrative weaves through Apple's cautious gaming pivot, RAC7's unique appeal, the competitive landscape, and the challenges of scaling this venture.

A PIVOT TO GAMING OWNERSHIP

Apple's acquisition of RAC7, a Vancouver-based studio founded by Jake Ennis and Jesse Ringrose, is a quiet milestone in its tech journey. The deal, confirmed today, brings the creators of Sneaky Sasquatch—a 2019 Apple Arcade exclusive—into Apple as an internal studio, tasked with expanding the game's reach within the subscription service.

Unlike Microsoft's $68.7 billion acquisition of Activision Blizzard, Apple's move is modest, described as a “unique circumstance” to grow a beloved title rather than a signal of a broader studio-buying spree.

Since launching Apple Arcade in 2016, Apple has relied on third-party developers like Lykke Studios and Triband to deliver over 200 ad-free games, with monthly additions like Katamari Damacy Rolling Live and Space Invaders 3. RAC7's consistent updates have kept Sneaky Sasquatch a fan favorite, prompting Apple to secure its future by bringing the team in-house.