Connect with us

Datastream

Visualizing Apple’s Rise to the Top of the Gaming Business

Published

on

Visualizing Apple Dominance in Gaming

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

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:

YearApple’s Estimated App Revenue from Gaming% of Total App Revenue
2018$9.5B71.7%
2019$11.0B69.0%
2020$13.5B66.7%

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 than some of the most reputable gaming companies who designed them.

For example, in 2019, Apple generated $2 billion more in operating profit than Nintendo, Microsoft, Sony, and Activision Blizzard—combined.

Why Apple’s Dominance is a Problem

The 30% fee is a financial burden for game developers who sell large volumes of in-app purchases. So, in an attempt to bypass Apple’s in-app payment systems, some developers have tried to redirect users to external payment platforms (a competitive tactic called envelopment).

Epic Games tried a version of this by integrating their own payment system into Fortnite. However, Apple then removed Fornite from the App Store, citing violations to the terms of their agreement. In response, Epic Games countered with a lawsuit, accusing Apple of monopolistic practices and antitrust violations.

While Apple ended up winning a majority of the court case, the tech giant was ordered to update their App Store policies, meaning Apple could no longer prohibit gaming companies from directing customers to alternative means of payment.

»>>Like this? Then you might enjoy this article on The History of Gaming, by Revenue Stream

Where does this data come from?

Source: Sensor Tower, via the Wall Street Journal

Subscribe to Visual Capitalist
Click for Comments

Economy

Charted: Public Trust in the Federal Reserve

Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.

Published

on

The Briefing

  • Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
  • After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low

 

Charted: Public Trust in the Federal Reserve

Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.

More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.

Methodology and Results

The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.

YearFed chair% Great deal or Fair amount
2023Jerome Powell36%
2022Jerome Powell43%
2021Jerome Powell55%
2020Jerome Powell58%
2019Jerome Powell50%
2018Jerome Powell45%
2017Janet Yellen45%
2016Janet Yellen38%
2015Janet Yellen42%
2014Janet Yellen37%
2013Ben Bernanke42%
2012Ben Bernanke39%
2011Ben Bernanke41%
2010Ben Bernanke44%
2009Ben Bernanke49%
2008Ben Bernanke47%
2007Ben Bernanke50%
2006Ben Bernanke41%
2005Alan Greenspan56%
2004Alan Greenspan61%
2003Alan Greenspan65%
2002Alan Greenspan69%
2001Alan Greenspan74%

Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”

We can see that trust in the Federal Reserve has fluctuated significantly in recent years.

For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.

On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.

Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.

Confidence Now on the Decline

After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.

This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:

  • Negative impact on the stock market
  • Increases the burden for those with variable-rate debts
  • Makes mortgages and home buying less affordable

Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.

Where does this data come from?

Source: Gallup (2023)

Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.

Continue Reading

Subscribe

Popular