Apple and epic games reveal a ton of trade secrets in court cases – from ‘Fortnight’ unspoken billions to private e-mail transactions, these are 5 juice bits

Apple CEO Tim Cook, left, and Epic Games CEO Tim Sweeney, right.

  • “Fortnight” producer Epic Games is suing Apple, and a bench hearing began in California this week.
  • The epic says that the Apple App Store is a monopoly. Apple claims that Epic violated its developer agreement.
  • Through court cases, the key secrets of Apple, Epic, Microsoft and many more have been revealed.
  • Visit Insider’s business section for more stories.

Apple and the maker of “Fortnight” are currently at war in a California courtroom – the culmination of a one-year gap between the two U.S. businesses.

Epic game After the success of “Fortnight” from the Apple App Store, the lawsuit was filed against Apple last summer.

When Epic implemented a payment method in the game that could help players avoid the Apple App Store, Apple claims that it pulled the game because it violated the terms of its developer agreement. Epic claims that the App Store is a monopoly, and argues that iPhones and iPods are no different from computers.

The trial began Monday in the U.S. District Court for the Northern District of California in Auckland, California. It has been filed in court that Judge Yvonne Gonzalez Rogers is scheduled to oversee the trial for about three weeks before delivering a verdict.

A week later, we have already learned a lot: between key financial disclosures, company secrets and personal emails between executives, the evidence in the investigation is a treasure trove of information.

1. According to Microsoft, Xbox console sales are not profitable and they have never been.

Xbox Series X and Xbox Series S.
Xbox Series X, left, and Xbox Series S, right.

After nearly two decades of sales, Xbox consoles have never been a profitable product for Microsoft.

Microsoft Xbox Business Development VP According to Lori Wright’s oath, the Washington – based technology company sells every Xbox at a loss.

“Did Microsoft ever make a profit on Xbox console sales?” He was asked on Wednesday, May 5th. “No,” he said.

Wright appeared as a witness in the ongoing investigation into various questions about Microsoft, Xbox and Digital Storefront. Microsoft has publicly backed the epic lawsuit against Apple.

The meaning of Xbox profits is questionable because of how Microsoft’s console business operates: instead of making money on the console, the company makes money from the sale of games through its digital storefront, from subscription services such as the Xbox Game Pass, and parts from the sale of games.

Microsoft, like other console makers, reduces every sale in its digital storefront. That cut is typically around 30%, which has become a standard in the video game distribution market. Apple is taking a similar cut from games sold in its iOS App Store, which is part of Epic competing in a court case against Apple.

2. Apple is said to have made huge margins in the App Store.

Tim Cook WWDC 2020
Apple CEO Tim Cook.

Nate Barnes, managing director of the Berkeley Research Group, one of Epic’s expert witnesses, said the Apple App Store has been experiencing extreme margins: at least in the ’70s for the past 70 years, according to Barnes.

“In my expert report dated February 16, 2021, I used Apple testimonials and financial information I had at the time to calculate the App Store operating margin percentage at 79.6% for each FY2019 and FY2018,” Barnes writes.

He also said that Apple had “prepared additional documents” for the test, which proved a slightly lower percentage over two years, but that the numbers “agree and confirm the fairness of the calculations presented in my expert report.”

However, Apple denies the Bourne report. “The epic experts’ calculations of the operating margins for the App Store are simply inaccurate.” An Apple representative told The Edge.

Core to Epic is under investigation for not allowing third-party payment methods and for running a monopoly with the Apple App Store by refusing to allow competing app stores on the iOS platform. Epic argued that high profit margins from the App Store were part of what Apple would not allow.

3. “Fortnight” makes an epic billion dollars every year, especially on the PlayStation 4.

Fortnight (robber chest)

Of the less surprising secrets uncovered from the evidence provided during the investigation, “Fortnight” makes a huge sum – billions of dollars every year for the past several years.

In 2020 alone, the epic grossed $ 5 billion, according to the affidavit of epic sports CEO Tim Sweeney. Between 2018 and 2019, “Fortnight” brought in more than $ 9 billion.

Epic makes more than “Fortnite” – the gaming agent produces the Unreal Engine, runs the Epic game store, and owns and releases several major games (“Rocket League” and “Fall Guys”). Epic data provided during the trial shows that those projects, which make hundreds of millions of dollars, do not generate as much revenue as “Fortnight”.

4. Epic CEO Tim Sweeney emailed Apple CEO Tim Cook at 2 a.m. announcing war.

Time Sweeney Epic Games Fortnight
Epic Sports Co-Founder and CEO Tim Sweeney.

Tim Sweeney, CEO of Epic Sports, P.D., on August 13, 2020 at 2 p.m. Sent an email For Apple CEO Tim Cook and several other Apple executives, Apple has devised an epic plan to slash the amount of money paid on “Fortnight” on the iPhone and iPod.

It was considered a declaration of war.

“I am writing to tell you that the epic will no longer comply with Apple’s tariff processing regulations,” Sweeney wrote. “Today, Epic introduces epic direct payments on ‘Fortnight’ on iOS, giving customers the option to pay for the app through Epic Direct Payments or Apple Payments, and Epic Direct Payments to customers in a lower format. Prices.”

In response, Apple pulled “Fortnight” out of its iPhone and iPad store, and the game became unplayable from both. Epic sued Apple the same day, and this is one of the many personal messages between email companies.

5. “Fortnight” is a big deal on the PlayStation 4, Epic was able to force Sony to break the long-standing precedent in gaming.

Fortnight

In September 2018, after spending many months in battle losing in the court of public opinion, Sony gave inside: “Fortnight,” the company announced, will be running with friends on other platforms on the PlayStation 4.

“Fortnight” is the first game that allows players from all platforms to play together. “This represents a major policy change for Sony Interactive Entertainment,” Sony said in a statement. Playing on all other platforms, it was clear that Sony was almost certain to deliver: tens of thousands of people were playing “Fortnight” and documents from the epic provided as evidence at trial that they were making more revenue from players on Sony’s PlayStation 4.

Between January 2019 and July 2020, shortly before “Fortnight” was removed from the App Store, Epic reported earning an average of $ 150 million per month from PlayStation players. In comparison, Epic said the company earns an average of $ 23 million a month from iOS players.

Got a tip? Contact Ben Gilbert, Senior Reporter, Insider ([email protected]), Or Twitter TM (@realbengilbert). We can keep the sources anonymous. Use a device that does not work to reach. PR bits by email please.

Sophia Harrison

Part time worker

I'm Sophia Harrison working as a part-time staff at the Costco since the past year until I become as an author at the iron blade, hope I can use my experiences with the supermarkets here.

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