More Epic vs. Apple industry gossip
Epic Games v. Apple has gone from an amusing spectacle to an overflowing buffet of insider information after internal documents from various game and tech industry giants became very public.
For example, Microsoft has never made a profit selling Xbox hardware, and Sony has only occasionally made a profit on PlayStation hardware. Only Nintendo cares about making money on their hardware, according to analyst Daniel Ahmad.
At a loss: Epic's lawyer Wes Earnhardt called Xbox Vice President Lori Wright as a third-party witness and asked her about Microsoft's profit margin on Xbox hardware. Her answer: "We sell the consoles at a loss,” meaning any and all profit Xbox generates is from software and services.
Consolation: Epic argues that Apple claiming 30% of the revenue earned via the App Store is anticompetitive, while Apple argues that this is simply the industry standard. Epic is trying to disprove this by showing that the console business is different from the mobile one, since no profit is made on hardware.