Apple wins more from gaming than Sony, Nintendo, Microsoft and Activision combined
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Apple’s gaming profits exceeded those of major game companies, according to a report, with Apple earning more games from the App Store in its 2019 fiscal year than Nintendo, Microsoft, Activision Blizzard and Sony combined.
The lawsuit between Epic and Apple has brought to light many details about Apple’s operations, due to the large amount of evidence that surfaced during the discovery and then went to court. In a report examining some of the data released in the lawsuit, it appears Apple’s gaming revenue has overtaken many other industry heavyweights.
Analysis of the the Wall Street newspaper estimate Apple’s 2019 operating profit from gaming at $ 8.5 billion. During the lawsuit, Apple said the operating margins discussed were not correct and were higher than reality.
The report claims that the games-based figure is about $ 2 billion more than the operating profit generated by games in the same 12-month period by Sony, Activision, Nintendo and Microsoft. The gaming companies’ data came from the company’s filings, while Microsoft’s figure came from an analyst estimate.
Apple told the publication on Friday that the operating margins discussed in the trial were produced from an analysis that did not take into account many common costs associated with the App Store. Indeed, the analysis included all the revenue related to the game, but only a tiny fraction of the possible cost.
Games make up the bulk of App Store revenue, analysts suggested, taking into account data from Sensor Tower which estimated that Apple received $ 15.9 billion in App Store revenue for the. year, and 69% of that came from gaming. Using court data, it was suggested that the App Store had operating profit of $ 12.3 billion for the year, accounting for nearly a fifth of overall operating profit.
Regardless of how the split is done, it shows that Apple is a major force in gaming, overtaking the major companies synonymous with console games.
In her decision of September 10, Judge Yvonne Gonzalez Rogers noted that Apple enjoys “a considerable market share of over 55% and extraordinarily high profit margins”, but that Epic had failed to demonstrate that Apple was an “illegal monopolist”. Epic has appealed the decision.