Apple Games Makes 69% of App Store's $15.9B Profit | Earns More than Microsoft, Activision Blizzard, Sony, and Nintendo Combined

Urian B., Tech Times 03 October 2021, 10:10 pm

Apple is reportedly getting more profits from its gaming compared to a number of major companies combined. Basically, the App Store games were able to bring in a whopping $15.3 billion in its 2019 fiscal year compared to Activision Blizzard, Microsoft, Nintendo, and Sony all combined!

Epic Games and Apple

According to a story by Apple Insider, the lawsuit that happened between Epic Games and Apple brought a number of details regarding Apple's operations to light. This is reportedly due to the amount of evidence that was surfacing during the supposed discovery as well as subsequently being submitted to the court.

Analysis coming from the Wall Street Journal puts Apple's own operating profits coming from gaming in 2019 at just $8.5 billion. During the trial, Apple reportedly revealed that the discussed operating margins actually were not right, and they were much higher than reality.

Apple Earns from Gaming

The report claims that the gaming-based figure is just approximately $2 billion more compared to the operating profit that is generated from games during the whole 12-month period by Activision Blizzard, Microsoft, Sony, and Nintendo combined. The gaming companies' own data stemmed from the company filings. Microsoft's figure was reportedly from an analyst estimate as well.

Apple gave a statement to the publication noting that the operating margins that were discussed during the trial were produced from an analysis that was not able to take into account the numerous joint costs that were associated with the App Store. In effect, the analysis even included all of the different game-related revenue, 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 dipped in stock.

Gaming App Store Revenue

Gaming actually makes up a large portion of the App Store revenue, the analysts offered, taking into account the data coming from Sensor Tower that reportedly estimated that Apple was able to receive $15.9 billion in revenue coming from the App Store for the year. This actually meant that 69% of that future came from gaming.

Through the use of the court's data, it was implied that the App Store then had an operating profit of $12.3 billion for the year, acounting for almost a fifth of the overall operating profit. Regardless of the actual breakdown, it reportedly still demonstrates that Apple is a huge force when it comes to gaming and is one that has even outpaced mainstay companies that are synonymous with console gaming.

Judge Yvonne Gonzalez Rogers gave her ruling of the lawsuit on September 10, 2021, noting that Apple did actually enjoy quite a considerable market share of over 55% as well as extraordinarily high profit margins. Epic, however, failed to show how Apple was an "illegal monopolist." Epic has now appealed the decision. With the massive influence of Apple, even Google could be paying $2 billion to remain the company's default browser.

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Written by Urian B.