In a word: We don’t think of Apple as a games company because it doesn’t create its own titles. Still, Cupertino is estimated to have earned more in 2019 from games than industry giants Nintendo, Microsoft, Sony and Activision Blizzard combined.
The startling revelation comes from a Wall Street Journal report examining the profitability of the App Store and how much of it comes from games. Using data from Sensor Tower, he writes that the store made $ 15.9 billion between October 2018 and September 2019. Based on Apple’s operating margin calculations revealed in the Epic vs Apple trial , the company achieved operating income of $ 12.3 billion during that period, or one-fifth of its overall profit.
The WSJ’s own analysis estimates that Apple earned $ 8.5 billion in profits from games on the App Store. This amount is roughly $ 2 billion more than the combined profits of Sony, Nintendo, Microsoft and Activision over the same period. The publication was based on the companies’ public financial records, as well as an estimate from Microsoft.
It should be noted that Apple, during the Epic lawsuit, claimed that the operating margins given were incorrect and did not take into account the many common costs associated with the App Store, so the WSJ figures could be more higher than reality.
Sensor Tower reports that $ 45 billion was spent on mobile games from the App Store throughout fiscal 2020, of which around $ 13.5 billion went to Apple, a lot of money, but still only 5% of the company’s overall turnover for the year. The analyst firm estimates that App Store spending for the first half of 2021 alone is $ 23.4 billion, up 30% from the same period a year earlier.
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