Apple Reportedly Made More Money from Games Than Xbox, Sony, and Nintendo Combined in 2019
While Microsoft, Sony and Nintendo all had a lot of gaming revenue, none of them can compare to Apple’s 2019 earnings. A recent report shows that Apple out-earns all other companies combined because of its revenue share.
In 2019, Apple made $8.5 billion from gaming, despite the fact that Apple does not make games. This figure is a result of the 30% cut on all App Store purchases, with the developers and owners of mobile games taking the largest share. Apple can remain a strong player in the gaming industry without having to develop games.
A recent report shows that mobile gamers spent $45 billion in the 2020 fiscal year on App Store gaming. The majority of this spending was from China and the United States with 31% and 26% respectively of the revenue. These top mobile gamers accounted for 64% of the App Store sales and spent nearly $2,700 annually.
Apple received $13.5 billion from the $45 billion it spent on the App store in 2020 fiscal year. This is an increase year-over year. These estimates show that the $13.5 billion represented only about 5% of Apple’s total revenue for 2020, which was approximately $275 billion. Apple’s revenue came from iPhone hardware sales which accounted for half of the revenue in fiscal year.
Although Apple’s 2019 earnings included money spent in Fortnite, Epic Games filed a lawsuit against Apple for 2020. The game was taken off the platform. Apple appears to be doing well despite losing the Fortnite-Bucks money which was generating Apple approximately $354 million in revenue. Analysts predict that mobile gaming revenues will continue to grow as more games are added to the platform.
The service category, which includes advertising, extended warranties, Apple TV and Apple Music, is included in the 2019 and 2020 Apple sales figures. They generated $53.8 billion in revenue for the 2020 fiscal year. Analysts predict that the global gaming industry’s revenue will nearly double from 2016, to $198 billion by 2024. Some projections predict that mobile gaming revenue will grow to $103 billion by 2024.
Epic Games challenged Apple’s revenue share during its recent lawsuit against Apple. This means that more companies might be inclined to Epic Games’ revenue share. These sales figures are not clear at the moment. Some gamers might be surprised by Apple‘s gaming profits, but the platform’s success shows why Google Stadia and Xbox are eager to move onto mobile.