If someone asked you who the most profitable company in the industry was, you’d probably guess someone like Sony. Or maybe Microsoft. Or even Nintendo. But you’d be wrong on all counts. Apple has raked in more profit than all three of those major gaming platforms, and they don’t even have a game to their credit.
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According to The Wall Street Journal, Apple made more operating profit from games than Sony, Microsoft, Activision, and Nintendo. The total profit for the company came to an insane US$8.5 billion without ever having to lift a finger in game development.
How did Apple accomplish this? Well, if you’ve been following tech news for some time, you know all about the outstanding Apple Tax. The company takes 30% of all digital purchases made through the App Store. So, developers who have games in the App Store have to pay to be on the App Store.
Keep in mind; the App Store runs across a gambit of devices, MacBooks, iMacs, iPads, Mac minis, and iPhones, so there is plenty of opportunities for the company to collect. Nintendo itself has games on the App Store, so they are also subject to the Apple Tax.
It’s worth noting that Apple’s ‘cut’ of digital sales is believed to be the same as Nintendo’s on the eShop, and it’s understandable that the platform holder should take a bite out of every sale made on its platform. The difference here, of course, is that while Nintendo has sold an impressive 90 million Switches over the past four years, Apple sold 196.9 million iPhones in 2020 alone. The number of iOS devices in active use today will totally dwarf the install base of Switch, which accounts for the amazing profit Apple is able to generate from games.Nintendo Life
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Last Updated on October 4, 2021.