Apple Games Achieves 69% of App Store Profits of $ 15.9 Billion | Earn more than Microsoft, Activision Blizzard, Sony and Nintendo combined
Apple would make more profit from its games compared to a number of large companies combined. Basically, games from the App Store were able to gross $ 15.3 billion in its fiscal 2019 compared to Activision Blizzard, Microsoft, Nintendo and Sony combined!
Epic Games and Apple
According to a story by Apple Insider, the lawsuit that took place between Epic Games and Apple has shed light on a number of details regarding Apple’s operations. This is said to be due to the amount of evidence that surfaced during the alleged discovery and then went to court.
Analysis from the the Wall Street newspaper puts Apple’s own operating profit from gaming in 2019 at just $ 8.5 billion. During the trial, Apple reportedly revealed that the operating margins discussed were in fact not correct and that they were much higher than reality.
The report claims the games-based figure is only about $ 2 billion more than the operating profit generated by games over the entire 12-month period by Activision Blizzard, Microsoft, Sony and Nintendo. combined. The gaming companies’ own data came from the company’s statements. Microsoft’s figure would also come from an analyst estimate.
Apple made a statement to the publication noting that the operating margins that were discussed during the test were produced from an analysis that was unable to take into account the many common costs. associated with the App Store. Indeed, the analysis even included all the different gaming-related revenues, just a fraction of the possible cost. In March 2021, however, Apple lost its $ 2 trillion valuation as other companies like Google, Facebook, and Amazon all dropped in inventory.
Read also: Samsung Pay and Samsung Health finally remove banner ads
Game App Store Revenue
Games actually account for a large chunk of App Store revenue, analysts suggested, taking into account data from Sensor Tower which reportedly estimated that Apple was in a position to receive $ 15.9 billion in revenue from it. of the App Store for the year. That actually meant 69% of that future came from gambling.
Through the use of court data, it was implied that the App Store then had an operating profit of $ 12.3 billion for the year, representing nearly a fifth of overall operating profit. Regardless of the actual split, that would still demonstrate that Apple is a huge force when it comes to gaming and has even overtaken the major companies synonymous with console games.
Judge Yvonne Gonzalez Rogers rendered her ruling on the lawsuit on September 10, 2021, noting that Apple actually enjoys a sizable market share of over 55% as well as extraordinarily high profit margins. Epic, however, has failed to show how Apple is an “illegal monopoly.” Epic has now appealed the decision. With massive influence from Apple, even Google could pay $ 2 billion to remain the company’s default browser.
Associated article: New Clubhouse feature offers 30-second audio previews before users join the room
This article is the property of Tech Times
Written by Urian B.
2021 TECHTIMES.com All rights reserved. Do not reproduce without permission.