![]() ![]() Sales of iPhones and iPads have not been impacted one iota. When Epic Games purposefully violated Apple developer policies in August 2020, Fortnite was removed from the mobile App Store. The Fortnite lawsuit is much like those early Macbooks. The term dongle life was born because getting media on and off the device often required an adapter that was sold separately. The new format did away with all of the input/out ports that made the laptop so popular with photographers and digital artists. Customers are fiercely loyal and will often buy Apple products regardless of the limitations. It’s hard to overstate the scale of this business. The Cupertino, Calif.-based company has a powerful ecosystem with a billion registered devices. Ultimately, the real power rests with the platform gatekeepers, like Apple. Some investors assume game producers have the power to change and set the rules. ![]() Apple lawyers were quick to point Tuesday that out iPhones and iPads made up only 5.5% of 2020 revenues. Epic pays the same 30% fee to game console makers Microsoft ( ( MSFT) - Get Free Report ) and Sony ( undefined ) even though gameplay on Xbox and Playstation account for a much larger portion of Fortnite sales. There is also the problem of consistency. The company is entitled to charge a fee for providing that service. It’s a big part of the reason people by Apple products. While Sweeny may gripe about the 30% fee, keeping payment systems and user data secure is ultimately about trust. There is an obvious problem with this legal strategy: Apple is providing a real service as gatekeeper to its operating system. The roadblock, in his view, was the 30% fee paid to Apple. Tim Sweeny, chief executive laid out a grand vision for Fortnite where developers and artists could build virtual businesses inside the platform. As part of the ongoing legal battle Epic lawyers disclosed this week that the platform had sales of $5.4 billion in 2018, $3.7 billion a year later, and $5.1 billion during 2020. ![]()
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