Apple Might Be A Bigger Gaming Company Than Nintendo And Activision
When you think of gaming companies, maybe names like Nintendo and Activision pop into your mind. After all, these are companies behind some of the biggest gaming franchises in the world like Mario, Zelda, Call of Duty, and more. However, it seems that Apple could actually be bigger than both of them combined.
According to an analysis by the Wall Street Journal (paywall), data revealed during the Apple VS Epic lawsuit has led to the conclusion that Apple could actually be a much bigger gaming company than Nintendo, Activision, Microsoft, and Sony combined. Apparently Apple’s operating profits from gaming alone in 2019 was estimated to be around $8.5 billion, although during the trial, Apple said that those figures were wrong and that it was higher.
These estimates put Apple $2 billion ahead of the likes of the companies we mentioned above during the same 12-month period, bujt Sensor Tower thinks it could be more. Based on data from Sensor Tower, they estimate that Apple made $15.9 billion in revenue from the App Store in 2019, and that 69% of that figure actually goes to gaming, suggesting much higher figures.
However, to be fair, Apple doesn’t actually make any of the games that they sell, whereas companies like Nintendo, Microsoft, Activision, and Sony do. Also, those companies sell games that are priced higher, which means a higher barrier to entry, whereas games on iOS can be sold for “free” and instead generate money from in-app purchases.