The income of the gaming are in an uptrend and reportedly will exceed 200,000 million dollars in 2022 after raising $192.7 billion in 2021. The lockdowns that were put in place during the pandemic and consumer spending served as positive catalysts for the sector.
Apple windfall profits from the industry gaming
Apple, Inc. (NASDAQ:AAPL) ranked third on the list of publicly traded companies with large revenue contributions from the segment of the gaming.
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The income for gaming of the Cupertino company stood at 15.3 billion dollars in 2021, a 17.7% year-on-year increase, according to Statista, citing Newzoo. At the same time, the console manufacturer Xbox Microsoft Corporation (NASDAQ:MSFT) took home $12.9 billion in revenue from gaming in the year.
Chinese tech giant Tencent Holdings Limited (OTC:TCEHY) and Japanese consumer electronics giant Sony Group Corporation (NYSE:SONY) ranked first and second, respectively. While Tencent increased its revenue by 9.9%, Sony’s fell by 2.3%.
Source: Newzoo via Statista
The updating of the international titles of Tencent ‘Clash Royale’ and ‘League of Legends’ both saw huge engagement and revenue, with the latter benefiting from cross-promotion through the game show. Netflix Inc. ‘Arcane’.
source of income gaming by Apple
Apple’s strong market position in the gaming It must seem surprising, since it does not make consoles or produce games.
Apple launched a video game subscription service called Apple Arcade in September 2019. This is the closest the company has come to the industry. Through the service, the company offers a collection of mobile games, including arcade originals, classics and App Store favorites. The subscription costs $4.99 per month and the games available through the service are ad-free and can be purchased in the App.
Apple takes a 30% share of all in-app purchases made on the App Store. In 2021, mobile gaming revenue increased 12.5%, according to data from Newzoo.
From an earnings perspective, Apple’s market position in the gaming it is enviable. In 2019, Apple generated $2 billion more in gaming operating profit that the combined operating earnings of Nintendo Company Limited (OTC:NTDOY), Microsoft, Sony y Activision Blizzard, Inc. (NASDAQ: ATVI), according to Visual Capitalist.
This is pretty easy to understand because, unlike developers who have to foot the bill for game creation, most of what Apple earns in app store commission goes directly to their bottom line.
Precisely for this reason, Epic Games, the developer of Fortnite, has been disagree with Apple. The developer of Fortnite has tried to get Apple to allow payments outside the App or reduce the commission it charges game developers.
Microsoft’s proposed deal to buy Activision also poses a threat to Apple’s position in the gaming.
The tech giant closed Friday’s session down 4.08% at $149.64, according to data from Benzinga Pro.
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