Apple has higher operating profit in the gaming field than the sum of well-known companies such as Sony, Nintendo, Microsoft and Activision
Apple doesn't make game consoles like the PlayStation 5 or Nintendo Switch, nor does it develop popular games like Fortnite or Apex Legends, but it's becoming one of the largest gaming companies in the world. Apple's App Store earned tremendous revenue from game apps, and operating profit in the game sector in 2019 was higher than the combined operating profit of well-known game-related companies such as Microsoft, Nintendo, Activision, and Sony. The street journal points out.
Apple Doesn't Make Videogames. But It's the Hottest Player in Gaming. --WSJ
Apple earns more from gaming than Sony, Nintendo, Microsoft, Activision combined --AppleInsider
https://appleinsider.com/articles/21/10/03/apple-earned-more-from-gaming-than-sony-nintendo-microsoft-activision-combined
The discovery process during the court battle between Apple and Epic Games has unveiled various key documents related to the gaming industry, revealing details about Apple's operations. Wall Street Journal analyzed some of this disclosed information and found that Apple's gaming revenue in 2019 (October 2019-September 2020) was estimated at $ 8.5 billion (approximately 940 billion). It also exceeded the total operating income of Microsoft, Nintendo, Activision, and Sony in the game field during the same period.
However, Apple has stated that these numbers revealed during discovery are 'incorrect and too high.' Specifically, it is a number that does not take into account the cost of developing and maintaining the App Store.
The reason why Apple can make a big profit in the game field is that it collects 30% of sales from third-party apps distributed on the App Store as a distribution fee. According to Sensor Tower, a market researcher for mobile apps, the open world RPG 'Genshin' has sold over $ 1 billion on the App Store and Google Play just six months after its release. , About 60% of this is sales via the App Store. In other words, since 60 million dollars (about 67 billion yen), which is 60% of 1 billion dollars, is sales on the App Store, 180 million dollars (about 20 billion yen), which is 30% of that, will be charged to Apple side. It will be calculated that it has been paid.
'Genshin', which recorded sales of over 100 billion yen in just half a year, is growing the fastest as a mobile application game --GIGAZINE
According to Sensor Tower, users around the world will spend $ 45 billion on mobile games on the App Store in 2020, of which about 31% will be in China and 26% will be in the United States. .. Apple's profit from this is estimated at $ 13.5 billion, which is about 5% of Apple's sales.
Documents filed with the court also revealed that in 2017, only 6% of App Store game users accounted for 88% of App Store game-related sales that year. The top 6% of game users spend more than $ 750 a year on mobile games per person.
In addition, technology consulting firm Activate predicts that the cumulative worldwide sales of the game market will double to $ 198 billion in 2024 compared to 2016. Much of this growth comes from the mobile gaming sector, with Activate predicting that out of $ 198 billion, $ 103 billion will come from mobile gaming. These breakthroughs in mobile games are also expected to boost Apple's future growth.
However, Apple is not only being watched by multiple regulators for antitrust violations, but is also facing a legal battle with Epic Games, and will have to revise the App Store so far in the future. It's quite possible that you'll face a situation where you don't get it.
In addition, Apple's strict game-related regulations such as 'Rules that limit children's weekly online game play time to 3 hours ' have been enforced in China, which has been a driving force in the game industry in recent years. It is cited as one of the concerns that will slow down profits in the game field.
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