Apple makes more money in gaming than Nintendo, Sony combined: Report

Did you know, Apple Inc makes more money from gaming than Xbox-maker Microsoft Corp, gaming giants intend Co. and Activision, and Sony Corp combined.

A report from The Wall Street Journal states that Tim Cook’s company uses the App Store, its digital marketplace, to sell and distribute thousands of games by other companies and developers. From Epic Games Inc.’s “Fortnite” to Tencent Holdings Ltd.’s “Honor of Kings” – Apple offers all these games to its users.

The company neither makes a gaming console nor created a game, but still, it was able to rake a whopping $8.5 billion in terms of operating profits from gaming alone in 2019, thanks to the 30 per cent cut, the company gets as App Store gate-keeping charge.

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An analysis from 2019 by the Journal showed that aforementioned Apple’s operating profits are more than four gaming giants combined.

However, the Cupertino-based company said that the calculation process to show operating profit margins gained from games are flawed and that’s why they are too high.

Last year, globally, Apple’s customers spent around $45 billion on mobile games through App Store.

Apple's financial report stated it made $66.29 billion in operating profits in terms of Services. The company doesn't break down the numbers for each unit such as iCloud, service, apps, music, warranty extensions as such, but clubs all of them under one name Services.

However, in the near future, Apple may see a decline in revenues from the gaming segment, as the company is facing several battles with app companies including Epic Games, and anti-competition trials in multiple countries around the world.

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