The ongoing Epic Games v Apple trial has recently revealed some very interesting details of the gaming industry and in particular how Microsoft gained so much last fiscal year 2019.
According to a document from the trial, it revealed the profit made by publishers off the games and services they released on a particular fiscal year, which was 2019. Here are the numbers via source:
Tencent – $6.3B
Apple – $5.2B
Sony – $4.1B
Google – $3.2B
Netease – $2.4B
Nintendo – $2.3B
Microsoft – ($1.6B – $2.3B range)
Activision / Blizzard – $1.6B
EA – $1.2B
Epic – $1.08B
There was another document that specifically revealed how much Microsoft earned during fiscal year 2019 and someone might have forgotten to redact that part. It was revealed that it made $2.2 billion in profit. That is a large number.
Microsoft Xbox VP Lori Wright during the trial revealed that their main competition is mainly PlayStation and to a lesser degree Nintendo Switch. “We don’t see an iPhone as a competing device,” she pointed out.
On another topic, Wright was asked about Microsoft earning a profit on the sale of an Xbox console, which she replied no. “If Microsoft sells consoles at a loss, why does it keep selling consoles?” Wright responds that the biz model is for a consumer end-to-end experience, and “hardware is critical” for that.
Wright also revealed that Microsoft accidentally got the Shadow cloud gaming app removed from the App Store when they were trying to bring xCloud to iOS. She stated that it was not their intention to do so.
So many interesting details have been revealed in this big trial.