When it comes to the biggest game developers, Nintendo and Activision come to mind. They are behind such popular gaming franchises as Super Mario, Zelda, Call of Duty and many more. However, Apple makes more money from games than these two companies, and Microsoft and Sony combined. It’s all about App Store fees.
According to The Wall Street Journal, Epic Games’ lawsuit against Apple revealed that App Store profits reached $ 12.3 billion in 2019. 69% of the revenue came from games (approximately $ 8.5 billion), although Apple then denied such information. Either way, that’s two billion more than Sony, Nintendo, Microsoft, and Activision’s operating profits over the same time period. Sensor Tower estimates Apple’s 2019 App Store revenue was more impressive at $ 15.9 billion.
According to Tim Cook, all of these figures are grossly overestimated, but he confirmed that the majority of the company’s revenue does indeed come from games. The head of Apple said that they never calculated the exact profit of the App Store, especially the gaming direction.
It is noteworthy that Apple does not develop games, but generates income from commissions on paid games, as well as in-app purchases. In contrast, Nintendo, Microsoft, Activision, and Sony all sell games at higher prices but ultimately earn less.
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