According to a recent report, i profits of Apple from its games exceed those of major gaming companies. In fact, it seems that Apple, in 2019, has earned more than Nintendo, Microsoft, Activision Blizzard and Sony put together. Here are all the details.
Apple’s profits from games: staggering figures
The lawsuit between Epic and Apple unearthed many details about Apple operations. In a report examining some of the data released as part of the lawsuit, Apple’s earnings from its games appear to have surpassed many other heavyweights in the industry.
Analysis by the Wall Street Journal showed Apple’s operating profit from gaming in 2019 which equals 8.5 billion dollars. During the trial, Apple said the discussed operating margins they weren’t right and they were higher than reality.
The report claims that the game-based figure is about $ 2 billion more than operating profit generated from games in the same 12-month period by Sony, Activision, Nintendo and Microsoft. The data from the gaming companies comes from corporate documents, while Microsoft’s figure comes from an estimate by analysts.
Apple said the operating margins discussed in the trial were produced by an analysis it did not take into account numerous common costs associated with the App Store. In fact, the analysis included all revenue related to the game but only one a small part of the possible cost.
The game makes up the bulk of the App Store’s revenue, analysts said. The latter took into account the data of Sensor Tower. The site estimates that Apple has made a profit 15.9 billion dollars of App Store revenue for the year, noting that the 69% of this figure comes from gaming. Using court data, it was implied that the App Store had an operating profit of $ 12.3 billion for the year, accounting for nearly a fifth of the overall operating profit.
Regardless of how the breakdown is done, it shows that Apple is a major force in the gaming industry. It is such an important exponent from surpass even the main companies in the sector.