Apple moving into Console Gaming?

[Deleted member 11852]

Consoles are about "best bang for your buck" deals unless you're Nintendo. A concept Apple doesn't understand.

If helps if you think like a greedy corporation. Selling the hardware at loss but making masses on microtransactions. Because that is where most of Apple's App Store revenue comes from: mobile game microtransactions. If they lower the barrier of entry with aa cheaper/ish (well not traditional Apple-priced) is a way to broaden the base of seems to be many people wanting to give their money away. ¯\_(ツ)_/¯

 

[eastmen]

If helps if you think like a greedy corporation. Selling the hardware at loss but making masses on microtransactions. Because that is where most of Apple's App Store revenue comes from: mobile game microtransactions. If they lower the barrier of entry with aa cheaper/ish (well not traditional Apple-priced) is a way to broaden the base of seems to be many people wanting to give their money away. ¯\_(ツ)_/¯

I'd image for apple you can take any failed M1 chips and just put them in an apple tv box with a fan and larger heatsink for it and just call it a day. Even slapping a $500-$1k price point it would most likely still sell. Apple could make a lot of money there since you don't need any type of screen.

 

[Nisaaru]

If helps if you think like a greedy corporation. Selling the hardware at loss but making masses on microtransactions. Because that is where most of Apple's App Store revenue comes from: mobile game microtransactions. If they lower the barrier of entry with aa cheaper/ish (well not traditional Apple-priced) is a way to broaden the base of seems to be many people wanting to give their money away. ¯\_(ツ)_/¯

IMHO the only device Apple ever fairly priced was the first AppleTV. Since then AppleTV at least doubled in price + an additional "premium" 4k model

 

[Deleted member 11852]

IMHO the only device Apple ever fairly priced was the first AppleTV. Since then AppleTV at least doubled in price + an additional "premium" 4k model

Yeah, and the Apple TV is probably the likely 'traditional' console-like vector product that would be easy to adapt to a more gaming focus. Whenever the rumours abut Apple getting seriously into gaming rise, ia controller and the Apple TV are mentioned.

It's worth remembering that in terms of revenue from gaming, Apple's revenue from AppStore gaming in 2021 was $53.2bn. They take a third of that and spend virtually nothing. So Apple are already getting more money from gaming than Sony and Microsoft combined.

 

[Nisaaru]

The beauty of monopoles...

 

[Deleted member 11852]

The beauty of monopoles...

Microsoft and Sony have the same models for selling games in their console ecosystems. Four companies, let's not forget Nintendo, can't all be monopolies. The closed ecosystem business model =/= monopoly.

All of these companies are just chasing money and all will perform mental gymnastics to justify why some rules should not apply to them. Let's not forget that Microsoft were shouting for Apple's AppStore walls to be pulled down, whilst simultaneously arguing that Xbox was different and it shouldn't happen there. All of these companies - Apple, Google, Microsoft, Nintendo, Sony - are full of bullshit. Anybody who subscribes to the PR about how they care about gamers, is deluding themselves. These companies want your money, nothing more but iff they can fool you into feeling some sense of loyalty, bonus!

 

[Wesker]

If helps if you think like a greedy corporation. Selling the hardware at loss but making masses on microtransactions. Because that is where most of Apple's App Store revenue comes from: mobile game microtransactions. If they lower the barrier of entry with aa cheaper/ish (well not traditional Apple-priced) is a way to broaden the base of seems to be many people wanting to give their money away. ¯\_(ツ)_/¯

I think Apple will do to Apple Arcade -- if they want to make a push into gaming -- what they do with Apple TV+: They will spend big on a few AAA developers to tailor make games for their platforms (which should be fairly easy given the common architecture across their devices). The approach is working with TV+ as they've had some critically acclaimed titles.

I'm not sure Apple will bother with putting M1/M2 into the next Apple TV. Maybe they will, maybe they won't. There isn't enough of a margin to work with if they put the M1 in there, IMO. I think they will stick with putting A15/A16 (the 5 GPU core version) chips into the next Apple TV if they want to keep the device somewhat affordable.

 

[Deleted member 11852]

I'm not sure Apple will bother with putting M1/M2 into the next Apple TV. Maybe they will, maybe they won't. There isn't enough of a margin to work with if they put the M1 in there, IMO.

Agreed. No doubt M1 will cost reduce over time but the only reason for Apple to increase the performance of their device is they are chasing a market that requires it. The A-series chips are more than good enough for casual gaming on the TV.

I think Apple would have to be seriously thinking about making a grab for the performance space currently filled by Xbox and PlayStation but I can't see many console gamers jumping to Apple TV unless all of those third-party games also come across. A fair do few, but a fraction of what comes to console.

 

[Silent_Buddha]

It's worth remembering that in terms of revenue from gaming, Apple's revenue from AppStore gaming in 2021 was $53.2bn. They take a third of that and spend virtually nothing. So Apple are already getting more money from gaming than Sony and Microsoft combined.

Did you mean that the AppStore generates that amount of revenue versus Apple's revenue being that much? The former indicates how much the AppStore generates (sales) while the latter indicates how much is going directly into Apple's pocket.

I'm guessing that's what you mean.

• Apple App Store revenue 2021 | Statista

The AppStore appears to have generated 85.1 billion USD in revenue, so it seams reasonable that gaming generated 53.2 billion USD in revenue while Apple's revenue would be 30% of that.

Pretty amazing considering that unlike Sony and Microsoft, Apple also have large profit margins for the iPhone hardware. The iPhone 12 BOM was estimated to be up to 431 USD (BoM Analysis: iPhone 12 Costs 21% More Than iPhone 11 (counterpointresearch.com) ) while the lowest priced version of the iPhone 12 was the mini at 729 USD while the top of the line model clocked in at 1,099 USD. The model used for the BOM estimate was probably the 829 USD iPhone 12. I used prices direct from Apple's website versus versions of the phone tied to a phone service provider.

Regards,
SB

 

[Deleted member 11852]

Did you mean that the AppStore generates that amount of revenue versus Apple's revenue being that much?

Your chart you linked is all purchases on the App Store. The $53.2Bn number in 2021 is just for gaming.

Revenue is what Apple take. It doesn't not include what Apple pay out or running costs - hence my point about Apple taking of third of that revenue.

 

[Silent_Buddha]

Your chart you linked is all purchases on the App Store. The $53.2Bn number in 2021 is just for gaming.

Revenue is what Apple take. It doesn't not include what Apple pay out or running costs (which is net profit) - hence my point about Apple taking of third of that revenue.

AppStore generated revenue isn't Apple Revenue is that point I was making. Just like neither Sony nor Microsoft record PlayStation Store or Xbox Store revenue as Sony or Microsoft revenue.

Perhaps the confusion is that I think of things in terms of how accountants record revenue for financial filings, so accuracy of terminology in that sense is more important to me.

Gotta love how the English language is so imprecise as it depends entirely on how one decides to use any given word in any given phrase. And why Legalese needs to exist.

Regards,
SB

 

[Deleted member 11852]

AppStore generated revenue isn't Apple Revenue is that point I was making. Just like neither Sony nor Microsoft record PlayStation Store or Xbox Store revenue as Sony or Microsoft revenue.

No I get that, I was coming at this rom the perspective of Apple wanting to expand on what is already a big profit centre for them. More than $50bn in revenue in 2021 and would bet that was a clear $15bn in profit after they had passed on the other 70% to developers. I ignored anything not AppStore/gaming related because that's still obscene amounts of money!