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Global Tech Giants Profit from the Gaming Industry in 2020 AD

Global Tech Giants Profit from the Gaming Industry in 2020

We all know how the videogames industry has become one of the most lucrative industries during the past couple of years. However, the current year and the COVID-19 pandemic crisis hit us differently. And while different industries suffered the consequences of the economic crisis caused due to the virus, the gaming industry was definitely not one of them. This created an incredible opportunity for indie developers, bigger companies and even tech giants.

Gaming and iGaming industries were progressing rapidly even before the coronavirus. Some of the technological advancements made playing videogames and pay n play casino games accessible and more convenient for players around the globe.

The Big 4 in the Gaming Industry

There was no stopping for four of the biggest tech giants in the world, even during the pandemic. As a matter of fact, Amazon, Apple, Alphabet, and Facebook earned $28 billion combined. Starting with Amazon, their sales went up 40% compared to 2019 sales, and when it comes to the profit they managed to double it.

Apple’s sale, for that matter, increased too, even if the retail store sales were never lower. The company announced an $11.25 billion profit only from the sales of its products. Apple’s finance chief, Luca Maestri, stated that weren’t there for the pandemic Apple would have probably made a couple more billions.

When it comes to Alphabet, their revenue did drop, but it was much better than it was anticipated. Lastly, Facebook’s profit skyrocketed, and it increased by 98%. After all, Facebook and Google remained relevant in the advertising industry, even if the Google search ads revenue was down for 10%.

New Rivalries in the Industry

Even if you think that these global tech giants are not the biggest names of the gaming industry, they sure recognized the potential of this opportunity. As it turns out, Xbox, Sony and Nintendo are no longer the main rivals. According to Microsoft’s head of gaming, Phil Spencer, the company no longer sees the two of their rivals as the biggest ones.

Many believe that the same destiny is waiting for Facebook, Apple, Microsoft, and Alphabet. Some of the reasons behind such opinions are some of the recent events in the industry. Namely, Facebook decided to dabble into VR and AR with their game Horizon. Moreover, this tech giant recently purchased Beat Games - a gaming company.

Playing videogames and casino games for money increased in popularity. Which is why Apple announced Apple Arcade, a videogame subscription service, that will be available for US$4.99 monthly subscription. Plus, with its range of devices, cloud and Apple TV, the company is ready to enter the gaming industry in full force.

Lastly, Alphabet also has a cloud game streaming platform of its own. This streaming platform named Stadia get integration with YouTube, and it will help the users access the game via a link on YouTube.

More 2020 Statistics

In case the above-mentioned data wasn’t enough, here’s more on the profit of tech giants in the videogame industry.

  • Facebook - their revenue in the second quarter was up for 11% compared to 2019. And their profit jumps reached $5.2 billion. Let us not forget that more than 3 billion people regularly use Facebook or some related applications. The number of active users also increased compared to last year’s analysis, and by an amazing 12%.
  • Amazon - First-quarter sales for Amazon’s online shop went 40% up from 2019. Amazon’s profit doubled in 2020 to an incredible $5.2 billion. The huge surge in demand surpassed all their potential threats and costs predicted for 2020. Moreover, the company's cloud computing business had an increase of 29%.
  • Alphabet - Google reported might have had a drop in quarterly revenue, but they still made a profit. A $6.96 billion profit.
  • Apple - the company representatives stated that their sales went up 11% and their profit 12%. The best sales included iPads and Mac computers, mainly due to the COVID-19 pandemic and the need to have a form of entertainment while inside.
Link Sano

Link Sano

Staff Writer

Has a passion for simulators

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