According to app intelligence firm Sensor Tower, app developers that produced less than $1 million from Apple’s App Store this year account for just 2 percent of game revenue.
This comes after Apple’s announcement that 85 percent of the revenue share will be entitled to developers making less than $1 million annually
Throughout the year, the company analysed 1,12,000 developers and noticed that about 29,000 of them received revenue from at least one game. Nearly 3% of these developers have produced player spending in excess of $38 billion, equivalent to 98% of total App Store revenue.
Approximately half of all games publishers tracked created less than $1,000 in player spending from their games, while 23 percent accumulated less than $10,000. 90% of the gross income was accounted for by those making less than $100,000. Meanwhile, 0.6 percent of all businesses accounted for publishers receiving between $1 million and $1.5 million, producing 0.5 percent of overall sales.
The number of publishers earning less than $1 million has declined, with more than 98% dropping in this category in 2018 and 97.3% in 2019.
Sensor Tower noted that the decision by Apple to reduce the sales share to 15 percent for smaller companies is a major shift in its long-standing strategy of taking a 70/30 split.
The change would have little effect on the earnings of Apple, but it still shakes up the market and can lead to a decrease in sales share for other platform holders.