Hacker News new | ask | show | jobs
by periheli0n 1860 days ago
Law of skewed distributions. A few apps, like Fortnite, generate huge amounts of revenue for the App Store (and for Epic in this case). Most apps are actually free or ad-funded and don't generate any revenue for Apple apart from the 100 bucks dev fee.

So it's fortnite and a bunch of other apps that make those 20 bn. Again, Fortnite alone made 300 M a year for epic, and 150M a year for Apple.

Actually I'd bet that the largest part of the revenue is generated by in-game purchases. Too easy to trigger addictive gaming with simple tricks like intermittent reward.

1 comments

Game IAPs definitely have skewed distributions, but I think the exact numbers have significant impact on arguments made about how much of a cut Apple deserves or how much total profit is reasonable. If you're making arguments about that I think you need at least basic numbers to support them, and those numbers aren't here.

Apple and Epic both have those distribution numbers, and I wish those showed up in the trial. The distribution is going to vary wildly from app to app, and games like Fortnite allow you to earn currency in-game. While I know they are skewed from personal industry experience, any claim from me about the actual average would be complete speculation.

Yes, since Apple wouldn't release the numbers required we cannot do a proper analysis.

Personally I don't know anyone who spends huge sums on paid apps, but I know of cases where kids spend huge sums on in-game stuff on iOS.

So yes, it's based on anecdotal evidence, but I have yet to hear an account of someone who regularly spends more than a tenner per month (or even per year) on paid Apps.