According to a Wall Street Journal investigation of the profitability of the iOS App Store and the contributions of games to it, this is the case.
According to the article, Sensor Tower believes that Apple made $15.9 billion from the App Store during the company’s fiscal year 2019. (October 2018 to September 2019).
According to Apple’s operating margin calculations, which were released earlier this year during the Epic vs. Apple test, the App Store’s operating profit was $12.3 billion that year, accounting for nearly a fifth of overall Apple profit.
Gaming accounted for 69 percent of those sales (nearly $11 billion), according to Sensor Tower.According to the WSJ, Apple would have earned $8.5 billion from games, which is $2 billion more than the operational profit generated by Activision, Microsoft, Nintendo, and Sony during the same period.
The site was built using publicly available financial data from Activision, Nintendo, and Sony, as well as an estimate from Microsoft.
During the trial, Apple challenged the operating margins, claiming they were incorrect. CEO Tim Cook said in court that the business never evaluated the App Store’s exact profitability and that the margins discussed were a “one-time presentation.”
He did, however, affirm that games provide the majority of App Store revenue. According to Sensor Tower, global spending on mobile gaming via the App Store will reach $45 billion in fiscal year 2020.