Apple is more profitable than many major gaming companies. In 2019, there has been a report that Apple earned more from the games in the App Store. It even surpassed Microsoft, Nintendo, Activision, and Sony. A law battle between Epic and Apple revealed many things about what Apple has been doing. Many things were discovered in this, which included some of the data which revealed Apple’s earnings that surpassed other major gaming companies.
A report revealed that Apple earned a profit of $8.5 billion just from gaming back in 2019. Apple said that the numbers were not true and were higher than that. It was said that the said profits are around $2 billion more than the working profit they earned from the games during the same year as Sony and Microsoft. The data was taken from the filings of the gaming companies while it was only an estimate for Microsoft.
Apple revealed that the working profits that were reported were just an analysis that didn’t include the costs of the App Store. The analysis was only about the profits gained from the games and not about the cost put on them.
How much does Apple get from gaming?
The gaming section does help Apple gain most of the earnings from the App Store. It is estimated that around $15.9 billion is produced from App Store for the year. By getting data from the court, it is estimated that around 70% is from gaming. App Store had a profit of $12.3 billion the year which was almost a fifth position in the overall profit earned.
It shows that Apple is also a major gaming company. Apple even surpasses the main gaming companies which focus on console gaming. Apple did have a good market share of 55% and earned much profit. Epic failed to prove the allegations against Apple.
Apple had a recent counter with Epic Games. They were asked to change the way they are making profitable money from the App Store. This law battle can take away some of its $100 billion markets. Court ordered Apple to make the app developers use other payment methods. The clash between the two companies lasted for more than a year.
The Judge’s directives come at a time when Apple is under pressure from around the world to open up its App Store to competition. At the moment, Apple takes a lot of fees on App Store transactions, and developers are said to utilize the App Store payment channel for any in-app purchases, according to App Store rules. The App Store earns more than $20 billion each year, with a profit of more than 75%.
While telling Apple to enable outside payment methods, the law also decided that the App Store wasn’t meant to allow third-party app stores to install outside apps. This shows that developers will still need to collaborate with Apple to access the iOS system users, which may be difficult for Epic Games to accept.
However, we know that Epic is upset because, despite the fact that the issue began with the issue of third-party payment, Epic turned it into a case in which it was ready to have its own marketplace within the App Store where players could purchase in-game items directly from Epic Games.
It wasn’t going to happen anyhow, as it wasn’t the first thing Epic was fighting for.