Apple says it competes with PlayStation, Xbox, and Nintendo
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Apple’sProducts compete with gaming platforms SonyPlayStation MicrosoftThe company announced Friday that it will be launching Xbox and Nintendo consoles in a regulatory filing
Apple had previously only stated it was a competitor GoogleFor the software developer’s attention, there is Android for smartphones and Microsoft Windows for PCs.
Apple’s rivals were a topic of high interest in an event antitrust trial with Epic GamesApple had argued earlier this year that Apple did not have a monopoly as its App store competed with other gaming platforms, Epic Fortnite included. Apple also banned Epic from its Store.
The company didn’t list any gaming consoles among its competitors at the time in its SEC filings.
Final judgment was that Apple didn’t have monopoly on the mobile gaming transaction market. However, the judge ordered Apple to alter its business practices to allow developers access to non-operated payment options. Epic Games and Apple appealing the ruling
Apple also updated its annual filing to reflect how much the company earns from tablet and phone gaming.
The Epic Games trial court decision states that about 70% of all App Store revenueGaming apps are less than 10% of AppStore users.
Apple caters to gamers more often in its product selections. Apple launched new iPhone 13 Pro models in September that have displays that increase the refresh rate. This is very popular among gamers.
Apple’s App Store saw gross sales exceeding $64 billion in 2020. according to a CNBC analysisThis is a. Apple earns more from gaming than other companies, such as Microsoft and Nintendo. Activision BlizzardSony the Wall Street Journal reported earlier this month
Government investigations and laws can pose risks
Apple warned investors during its annual filing about the possibility of having to make changes to its App store, which would decrease app downloads and lower the amount of commission Apple receives.
Apple also faces litigation and investigation relating to App Store. These have led to changes in Apple’s business practices and could result in additional changes in the future,” Apple stated in a filing to the SEC.
Apple receives between 15% to 30% from paid software downloads and in-app purchase subscriptions.
Apple’s App Store, part of the services business, reported sales of $68.43 Billion in fiscal 2021. This is a 27% rise over the prior year. Apple doesn’t separate revenue from services components, which include subscriptions, extended warranties, and advertising.
Apple filed that sales of its services business increased in 2013 primarily due to the growth in App Store, cloud and advertising. Apple cautioned that increased scrutiny of other tech companies could cause problems for its advertising business.
Apple stated in the filing that the Company makes revenue through licensing agreements with companies for offering search services via the Company’s apps and platforms. However, certain arrangements are subject to legal and government investigation.
Apple has not named Google in its antitrust lawsuit, but the company does have lucrative licensing agreements under which Google acts as default search engine on iPhones. As part of an antitrust suit, the Department of Justice quoted “public estimations” that Google paid Apple between $8 and $12 billion each year. against Google
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