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The Briefing
- Apple generates more operating profit from gaming than many of the most reputable gaming companies combined
- Gaming revenues are driven by App Store fees
Visualizing Apple’s Rising Gaming Revenue
In 2020, Apple generated an estimated $13.5 billion dollars in gaming revenue—even though the tech giant doesn’t actually make any games or gaming consoles.
So how does Apple generate all this money from gaming? A key driver of Apple’s gaming revenue is the 30% fee it collects from all app spending, including in-app purchases, subscriptions, and premium app fees.
Through this significant fee structure, Apple has seen its gaming revenue steadily increase over the last few years. Here’s a look at the company’s estimated gaming revenue from 2018 to 2020:
| Year | Apple’s Estimated App Revenue from Gaming | % of Total App Revenue |
|---|---|---|
| 2018 | $9.5B | 71.7% |
| 2019 | $11.0B | 69.0% |
| 2020 | $13.5B | 66.7% |
Note: For fiscal years ending in September
As the data above shows, a majority of Apple’s App Store revenue comes from games. And because of hefty fees, Apple made more profits off of games (Read more...)