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Apple, probably best known for iPhones, has generated more operating revenue in its games business than most of the major video game developers combined, reports the Wall Street Journal.
Justin Sullivan / Getty Images
Apple
makes more gaming profits than the video game giants
Nintendo
,
Activision Blizzard
,
Microsoft
,
and
Sony
combined in 2019, according to an analysis of The the Wall Street newspaper.
Although it is not a video game developer, Apple (ticker: AAPL) has ensured its dominance in the mobile games market by reducing all sales made on game applications by 30%, a non-negotiable condition for the company. distribution of applications on the tech giant’s App Store.
Apple’s operating profits on games in its 2019 fiscal year ended in September were $ 8.5 billion, according to the Journal’s analysis of revenue figures released as part of the antitrust lawsuit by large scale filed by video game developer Epic Games. This figure is $ 2 billion more than the combined operating profit of video game developers over this period.
Apple did not immediately respond to Barron request for comment.
Epic’s lawsuit shed light on Apple’s App Store revenue, which is typically reported in its service category, and also includes music, iCloud, and Apple TV. The services generated $ 53.8 billion in sales last year.
From 2018 to 2019, over 98% of Apple’s in-app purchase revenue came from games, according to court documents reviewed by Barron. In 2020, game transactions accounted for 68% of total App Store revenue, making the App Store “primarily a game store and then an” every other “app store,” wrote judge Yvonne Gonzalez Rogers. in its final decision.
The mobile gaming market has experienced strong growth in recent years. An industry report presented to the tribunal found that online gaming alone is a $ 100 billion industry, accounting for 59% of global gaming revenue.
Apple’s role in the games market could be at risk as policymakers and regulators consider how to narrow the tech giant’s reach. The action fell in mid-September after Judge Gonzalez issued a permanent injunction requiring Apple to allow developers to include links to alternative payment methods in their apps.
Apple stock closed at $ 139.14 on Monday, a loss of $ 3.51, or 2.5%. Rising bond yields put pressure on tech companies.
Write to Sabrina Escobar at [email protected]
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