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Apple’s gaming revenue surpassed the profits of large gaming companies, according to the report, with Apple earning more from the App Store in fiscal 2019 than Nintendo, Microsoft, Activision Blizzard and Sony combined.
The lawsuit between Epic and Apple revealed many details about Apple’s business, due to the huge amount of evidence that emerged during the discovery and which was later submitted to the court. In a report examining some of the data released as part of the lawsuit, Apple’s earnings from the games appear to have outpaced many other heavyweights in the industry.
Analysis from Wall Street Journal put Apple’s operating profit from the 2019 games at $ 8.5 billion. During the trial, Apple said that the discussed operating margins were not correct and were higher than reality.
The report claims that the figure based on games is approximately $ 2 billion higher than the operating profit achieved by Sony, Activision, Nintendo and Microsoft in the same 12-month periods. Gaming company data came from company reports, while Microsoft’s figure came from analysts ’estimates.
Apple announced on Friday that the operating margins discussed in the trial were produced by an analysis that did not take into account a number of common costs associated with the App Store. In fact, the analysis included all gaming-related revenue, but only a small portion of the possible cost.
Analysts have suggested that games play the bulk of the App Store, taking into account data from Sensor Tower that estimates that Apple earned $ 15.9 billion in revenue from the App Store for the year, with 69% of that figure coming from games. Using court data, it was implied that the App Store had an operating profit of $ 12.3 billion for the year, accounting for nearly a fifth of total operating profit.
Regardless of the way the crash is performed, it shows that Apple is a great force in games, one that surpasses the major companies that are synonymous with gaming on consoles.
In her September 10 lawsuit, Judge Yvonne Gonzalez Rogers noted that Apple did indeed enjoy “significant market share of over 55% and extraordinarily high profit margins,” but that Epic did not show that Apple was an “illegal monopolist.” Epic appealed this decision.
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