![]() In a 2017 email, Apple marketing head Trystan Kosmynka said he was “surprised” that “Roboblox” had been approved for the App Store. What could sound like a joke, was in fact a serious question in the Epic Games vs. Here’s some context from the second week of the Epic vs. Apple antitrust case as to whether it offered games or “experiences,” as an Apple senior director described it. Roblox stated in a legal filing on Thursday:Īpple’s process for review and approval of apps available on the App Store enhances safety and security, and provides those apps greater legitimacy in the eyes of users. As you may recall, the Fortnite maker lost a trial last year about whether Apple had anti-competitive payment rules and fees. Last year, Snap’s CEO said that he was happy to pay App Store taxes “in exchange for all of the amazing technology that they provide to us,” and now Roblox has stated that Apple’s App Store enhances “safety and security” to its users.Īs reported by Reuters, Roblox is supporting Apple’s bid to beat an appeal by Epic in its key US antitrust case. As part of Wright's testimony, other documents from Xbox show some of the company's inner workings including Xbox's analysis of The Last of Us Part 2 from rival PlayStation, as well as some of the company's expectations regarding rival releases like how it believed The Legend of Zelda: Breath of the Wild 2 was set to be released in 2020.It’s been a while since a big company defended Apple’s App Store regarding the Epic antitrust case. ![]() Apple trial continues to put on record many of these open secrets. But although hardware losses have been known throughout the industry, the Epic vs. Both Microsoft and Sony are profitable after all, and in the case of Microsoft, the Xbox division is just one of its many departments. Console sales are just one piece of the profit pie and it's not as if these companies are in the red for selling hardware at a loss. Meanwhile, Microsoft currently generates over a billion dollars in revenue from software and services, just as Wright testified. mPBKABWHRD - Daniel Ahmad Even now, analysis from documents revealed during the trial suggests that both Sony and Xbox are taking a loss on the hardware, while Nintendo doesn't as per its long-running strategy. Same Microsoft document has a breakdown of hardware revenue / profit estimates for Sony and Nintendo.Hardware generating a loss for Sony, but profit for Nintendo. ![]() Sony's PS4 was also profitable, according to analyst Daniel Ahmad. Nintendo, for example, has historically not tried to take a loss on hardware and makes a profit on systems sold, including the Nintendo Switch. Video game hardware has always typically been sold at a loss, save for a couple of instances. As noted by Protocol, Epic's questions regarding hardware profitability were in order to show that while video game console makers have a justification for its 30% revenue share as it is a primary revenue source for them, smartphone makers like Apple don't have as strong reasoning for their revenue share models. Wright explains that Microsoft keeps selling consoles at a loss because its business model is set up to deliver "an end-to-end gaming experience," and that hardware is "critical to us delivering that gaming experience." These experiences include services like games, Xbox Live Gold, and Xbox Game Pass.
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