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Apple makes more money from video games than Nintendo, Microsoft and Sony combined

Apple makes more money from video games than Nintendo, Microsoft and Sony combined

The relationship between Apple and games is not linear. The company does not produce video games or devices designed solely to play them, in addition, in the last year and a half the legal battle with a publisher, Epic Games, has animated discussions online and has written a small or large page of the relationship between developers and owners. of digital platforms. On the other hand, games are a very important source of income for Apple, according to an analysis reported by the Wall Street Journal, to the point of outperforming the divisions committed to video games of companies such as Sony and Microsoft, and companies that link their entire business to them, such as Nintendo and Activision Blizzard..

The operating profit per game, which therefore basically comes from the games available in the App Store, would have amounted in 2019 to 8,500 million dollars, a figure higher than that obtained by adding those of the four companies mentioned above. Value that came out during the process that saw Apple oppose Epic Games and that the company led by Tim Cook has defined higher than the real one, but that is credible when crossing some data and evidence. For Sensor Tower, the App Store in fiscal year 2019 would have recorded revenue of $ 15.9 billion, of which 69% came from games, thus about $ 10.9 billion. With an operating profit of 75% on the income obtained through the App Store, a value that was also considered valid by the judge in the case against Epic Games, we come to what the Wall Street Journal also reports.

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Interesting how the American newspaper highlights these impressive figures, yes, but At the same time, also some potential problems that Apple could run into in the coming years.. On the one hand, the ruling in the case against Epic could change the course and allow developers to monetize their work without necessarily having to go through the payment system integrated into Apple’s marketplace. Especially if regulatory bodies such as the American and European must intervene.

On the other hand, in recent weeks in China, the headwind for players seems to be getting stronger, with new rules and limits: a problem considering that 30% of the money raised through games on the App Store would come of the Asian country. , first against the US, stopped at 26%.

In short, although it is not always so evident in Apple’s daily communication, video games and players are fundamental for the company and the next few years are, on the one hand, full of opportunities, thanks to the practically unstoppable rise of mobile games, but also of some traps.