This article is published in collaboration with Statista
by Felix Richter
As the public feud between Apple and mobile games developer Epic Games heats up, some might wonder why it’s such a big deal. After all, how big of a difference can a couple of percentage points in commissions/app store fees make in the grand scheme of things? Well, considering that mobile game revenue generated on Apple’s App Store alone amounted to $11.6 billion in the past quarter, the answer is: quite a difference.
As the following chart shows, mobile games have grown into a giant business in recent years, generating tens of billions a year, mostly through in-app purchases of virtual items and/or additional content. According to estimates from Sensor Tower, mobile game revenue on Apple’s App Store amounted to $42 billion in the 12 months ended June 30, 2020, with Google Play adding another $27 billion to the equation. Assuming Apple would give in and lower its commission from 30 to say 20 percent, that would take $4 billion in revenue from its flourishing services business.
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