Thursday, May 19th, 2022

Apple made more money from games in 2019 than Nintendo, Sony and Microsoft combined

Image: Nintendo Life

Nintendo’s strong position in the video game market is good news for long-time fans of Japanese companies. After overcoming the storm of the Wii U era, Nintendo’s refocused “hybrid” strategy has paid off brilliantly. Switch is still one of the most popular high-tech products on the market, even after being sold for over four years. This week, the company released Switch OLED. This is an iterative update that enhances hardware sales as we move to 2022.

But recent reports The Wall Street Journal We are looking at Nintendo’s success. According to the press, figures released as part of Apple’s recent antitrust trial revealed that in 2019, it earned more operating profit from the game than Nintendo, Microsoft, Sony and Activision Blizzard combined. I have made it clear.

The total was a whopping $ 8.5 billion, but it’s worth noting that Apple said the numbers were too high because the operating margins discussed during the trial were incorrect. With that in mind, it’s clear that Apple is making a fair amount of money from games. This is ironic considering that Apple doesn’t make its own.

Amazing numbers are generated by Apple’s 30% savings from all digital purchases through the App Store. It is used in millions of devices around the world, including iPhones, iPads and laptop computers. Even Nintendo contributes to that number as part of that game – Super Mario Run, Animal Crossing Pocket Camp When Pokemon GO (Nintendo is a co-owner of Pokemon Company) – Available on iOS.

It’s worth noting that Apple’s digital sales “cut” is believed to be the same as that of Nintendo in the e-shop, and platform owners take a sip from all sales made on that platform. I understand that it should be. Of course, the difference here is that Nintendo has sold an impressive 90 million switches in the last four years, while Apple has sold 196.9 million iPhones in 2020 alone. The number of iOS devices in active use today completely reduces Switch’s installation base. This explains the amazing benefits Apple can generate from games.

Apple’s position recently FortniteHas filed a proceeding against Apple, alleging that it monopolizes the way software is sold on devices by forcing developers and publishers to use their own in-app purchase system. Fortnite is free to play and relies on in-app purchases to generate profits. Purchases are subject to Apple’s 30% reduction.

In court, Apple pointed out the fact that other platform owners, such as Google and Microsoft, are using the exact same system. Judge Yvonne Gonzalez Rogers of the US District Court agreed with most, but also ordered developers to be able to provide payment methods within their own apps. This is a payment method that bypasses Apple’s App Store and avoids a 30% reduction.

This means that games like Fortnite could generate millions for publishers on iOS without giving Apple a penny, which could have long-term implications for other platform owners, including Nintendo. there is.