Apple products as gaming platforms are competitors of Sony Playstation, Microsoft Xbox and Nintendo – the company announced this in a document addressed to the US Securities and Exchange Commission (SEC). Previously, it called Google Android in the smartphone market and Microsoft Windows in the PC market as its competitors.
Apple’s competitors were a major topic in the Epic Games litigation. At the hearing, Apple states that it is not a monopoly because it competes with other platforms that Fortnite also offers. But at that time, the company, when filing documents with the SEC, had not yet indicated the consoles as competing products. In the end, the judge ruled that Apple did not have a monopoly in the market, but ordered the company to open access to other payment systems. According to documents in the Epic Games trial, about 70% of all App Store revenue comes from gaming apps, and that 10% of app store users generate revenue.
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Apple says it competes with PlayStation, Xbox and Switch in the gaming industry
New Apple products increasingly support features that gamers appreciate. For example, the iPhone 13 Pro and MacBook Pro received 120-Hz displays; although the adaptation of this solution does not occur immediately on both smartphones and laptops. According to CNBC’s analysis, App Store sales totaled more than $ 64 billion in 2020. The company makes more revenue from games than Microsoft, Nintendo, Activision Blizzard and Sony combined. However, Apple has warned investors that it may be forced to make changes to the app store; which will reduce the number of downloads. In addition, it will have to reduce the commission; now it is from 15 to 30% for paid software, purchases in applications and subscriptions.
The App Store refers to Apple’s service business. For fiscal 2021, revenue from the entire direction amounted to $ 68.43 billion; which is 27% more than a year earlier. In addition to apps, the service line includes subscriptions, extended warranties, and advertising. According to the company, growth is due by advertising, the App Store, and cloud services.
Apple “is also subject to litigation and investigations relating to the App Store; which have resulted in changes to the Company’s business practices; and may in the future result in further changes,” the company said in the filing with the SEC.
“For example, the Company earns revenue from licensing arrangements with other companies to offer their search services on the Company’s platforms and apps, and certain of these arrangements are currently subject to government investigations and legal proceedings,” Apple said in the filing.