Source: News18 Media 

How Apple made more money from gaming than Microsoft, Nintendo

Community Jun 6, 2022

We all assume apple to be a company that has primarily focused on satisfying privacy and other professional norms since its very inception. This is so as Apple has always prioritized its designs to be more compact and user-friendly than all the competitors. Having said that, hearing that Apple has recently made more money than the gaming giants Microsoft and Nintendo, comes as an absurd shock to everyone.

According to a report published by Apple Insider, analysts claim that Apple’s gaming revenue has earned around $11.3 billion, surprisingly way more than the likes of Xbox by Microsoft and the Switch gaming by Nintendo. Meaning that Apple has now been ranked the 3rd richest gaming country, only before Sony which had a revenue of $18.2 billion, and Tencent being the richest rounding up its revenue at around $32.2 billion in 2021.

Source: Time Bulletin

To glitter your eyes, even more, Apple Co. gaming department earns more than the annual revenue of companies like Microsoft, Nintendo, and Activision combined!

E-sports players all over the world spend over $45 million on subscription-based games, wherein, gamers from US and China have most of the spending. China is the country where Appstore based games are most played to an extent that the Chinese government had to initiate a policy to limit the gaming time to 3 hours for kids.

How has it all happened?

Understand that Apple earns its major portion of gaming revenue from its Appstore, the number revolves around 25 - 30% under which Apple cuts as a mandatory tax from the host of games. Unlike other gaming platforms like Microsoft and Nintendo, the monetization Apple runs on is quite different as it acts as a pay-cut body for the games running and has consequentially no link on whether the games played are incurring losses or not, the taxation policy will remain the same. This is probably the reason certain games are available only on android ‘Play Store’ and also why even huge games like Battleground India (PUBG Mobile) launch their initial version on android first.

Comparison with companies like Sony and Microsoft

Companies like Sony and Microsoft on the other hand, have more of a service-based monetization policy. They essentially allow customers to buy their game subscription and obviously, limit transactions to their own games or some sort of franchise attached. It makes it quite evident that the fact that Apple has over the years increased the scope of its game revenue by introducing massive pay cuts to each and every game introduced on its platform. One can intriguingly accept that such a rise in gaming revenue by Apple is only a matter of time as especially the European government can amend such taxation policies at any time now.

Source: Apple Insider

The other factor can also be the fact that the companies like Sony and Microsoft hugely depend on the chip storage industry and it has been quite evident to everyone that the availability of storage chips has hit a huge toll on the supply chain and has raised prices in every industry that uses them. Apple on the other hand uses virtual storage in its cloud system.

Having as much as 55% of share in the online gaming business through smartphones, Apple Co. gaming department has been ruled out from the definition of monopoly. During a trial, it was concluded that although Apple is witnessing an unprecedented rise in the gaming business, it won’t necessarily count as a factor to determine whether Apple is a monopoly or not.

Apple has called against the allegation of its so-called ‘Apple-Tax’ be an unfair practice, whereon, such allegations mainly come from game developing companies worldwide. Epic game’s Fortnite had a fierce courtroom rivalry with Apple over its unprecedented tax hikes, where Apple confronted that such taxation policies are only introduced since Apple invests heavily in the smooth functioning of such apps with various privacy protections incorporated.

Apple’s contribution to the gaming industry

Source: Tech Spot

Despite all the negative taxation policies incorporated, Apple’s iOS interface remains the favourite choice of smartphone gamers. This is mainly due to the feature of compactness and user-friendly interface that allows the best functioning of any game played, whilst, keeping the smartphone protected from any sort of malware which is also one of the reasons behind its fluid system. Fun fact that devices such as Apple iPhone 6s launched almost 6 years ago, can still be used to smoothly play gaming apps. Not sure if any android based phone can do that.

Apart from its fluidity and compactness, Apple also allows a better and smooth way of updating gaming applications. This makes the gamers updated with several versions of the game quite immediately. Not only does it provides a faster update to games, but it also provides quick system-based updates in order to maintain the quality standards of gaming. MacBook on the other hand still sticks to its professional outlook but given how Apple’s share has raised due to its involvement in the gaming industry, the time isn’t far when MacBook will specifically focus on gaming standards.

Indifferent to all the hardware benefits Apple devices provide, Apple Co. still remains a body that controls and supervises gaming policies. Over the years, we’ve witnessed how Apple has incorporates several privacy norms to protect user data and make the system much more strengthened. E-sports gamers know that playing on Apple devices will in turn provide a guaranteed safety to their accounts and especially to their devices.

The question remains - Given the gaming benefits Apple provides, is it justified to have massive pay cuts from the developer’s end? It’s for you to decide!

Conclusion

According to a report released by Apple Insider, researchers estimate that Apple's gaming income is roughly $11.3 billion, which is significantly higher than Microsoft's Xbox and Nintendo's Switch gaming. Apple is currently the world's third-richest gaming country, trailing only Sony ($18.2 billion) and Tencent ($32 billion) in 2021.

Apple has pushed back against claims that its so-called "Apple-Tax" is an unfair practice, with such claims primarily coming from game developers around the world. Fortnite, an Epic game, had a bitter legal battle with Apple over its unusual tax hikes, with Apple arguing that such restrictions are only implemented because Apple invests considerably in the seamless operation of such apps with numerous privacy measures incorporated.

Apart from all of the bad taxation regulations, Apple's iOS interface is still the most popular among smartphone gamers. This is mostly due to its compactness and user-friendly interface, which allows for optimal performance of any game while also protecting the smartphone from malware, which is one of the reasons for its fluid system.

We hope the insights provided were helpful to you in your endeavor to become the next E-sports star! For such amazing content, stay tuned and you should download the Tournafest app from Google Play or the App Store to compete in Esports Tournaments and Scrims for games such as BGMI, Free Fire MAX, and Call of Duty and win exciting prizes! You may also organize tournaments and fetch unmatched perks.

Until next time,

#liveitforgaming

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