Apple, a player to reckon in the Video Games Industry, or not?
Despite not being a video game publisher, Apple is one of the most significant actors in the gaming industry.
Apple And The Video Games Industry
Apple has made a tremendous amount of revenue due to video games. In 2019, it made more profits than Microsoft, Nintendo, and Activision Blizzard combined (the makers of video games.)
According to Sensor Tower Apple made $15.9 billion in revenue from the App Store with games accounting for 69% of the total revenue. So, how did Apple do it if it is not making games?
The answer lies in Apple’s digital marketplace; App Store. Apple sells and distributes thousands of games on App Store that are developed by other companies like Fortnite, PUBG, and Honor Kings. Apple takes its 30% cut on sales and voila, it becomes a top player in the gaming industry.
However, Apple’s domination in the video game industry is being challenged now on multiple venues. One such domain is Virtual Reality where Apple is lagging far behind when compared with Microsoft, Facebook Inc, and Epic Games.
A parallel reality is the future of gaming in coming years where it is expected to double the industries’ revenue to $198 billion in 2024.
Another such threat stems from China where three of the top five video games on the App Store are from. The Chinese government has announced stringent rules on gaming hours for its young population to decrease the playing hours.
Moreover, Epic’s lawsuit against Apple also poses danger to Apple’s gatekeeper role. This led to increased scrutiny of Apple’s business ways and inviting strict regulations from governments as well as courts.
Apple And The Video Games Industry
Law makers throughout the world are working on ways to decentralize Apple’s power. Moreover, Judge’s recent verdict says that Apple must allow publishers to advertise alternate payment methods to its consumers that exist outside Apple’s platform.
So what is next for Apple? Most probably Apple will appeal against the recent verdict. Epic, on the other hand, has also made it clear that it will appeal and eyes for a more stringent verdict.
