Daily Business Report: Monday, March 7, 2022j
Apple’s Rise to the Top of Gaming
Visual Capitalist
The tech giant doesn’t make games of its own, but revelations from its court case with Epic Games reveals that it tops the industry with its lucrative marketplace
In 2020, Apple generated an estimated $13.5 billion dollars in gaming revenue—even though the tech giant doesn’t actually make any games or gaming consoles.
So how does Apple generate all this money from gaming? A key driver of Apple’s gaming revenue is the 30 percent fee it collects from all app spending, including in-app purchases, subscriptions, and premium app fees.
Through this significant fee structure, Apple has seen its gaming revenue steadily increase over the last few years. Here’s a look at the company’s estimated gaming revenue from 2018 to 2020:
2018: $9.5 billion. Percent of total app revenue: 71.7 percent
2019: $11 billion. Percent of total app revenue: 69 percent
2020: $13.5 billion. Percent of total app revenue: 66.7 percet
As the data above shows, a majority of Apple’s App Store revenue comes from games. And because of hefty fees, Apple made more profits off of games than some of the most reputable gaming companies who designed them.
For example, in 2019, Apple generated $2 billion more in operating profit than Nintendo, Microsoft, Sony, and Activision Blizzard—combined.
The 30 percent fee is a financial burden for game developers who sell large volumes of in-app purchases. So, in an attempt to bypass Apple’s in-app payment systems, some developers have tried to redirect users to external payment platforms (a competitive tactic called envelopment).
Epic Games tried a version of this by integrating their own payment system into Fortnite. However, Apple then removed Fornite from the App Store, citing violations to the terms of their agreement. In response, Epic Games countered with a lawsuit, accusing Apple of monopolistic practices and antitrust violations.
While Apple ended up winning a majority of the court case, the tech giant was ordered to update their App Store policies, meaning Apple could no longer prohibit gaming companies from directing customers to alternative means of payment.
Amazon taps National University
to help upskill U.S. Employees
National University has been selected by Amazon to serve as a national provider for the company’s Career Choice program, which provides full tuition to learn new skills for career success at Amazon or elsewhere. Amazon will pay its employees’ full tuition for more than 40 bachelor’s and associate’s degree programs offered by National University.
Amazon’s Career Choice program is an education benefit that empowers employees. The program meets individual learners where they are on their education journey through a variety of education and upskilling opportunities, including full college tuition, industry certifications designed to lead to in-demand jobs, and foundational skills such as English language proficiency, high school diplomas, and GEDs.
In the United States, the company is investing $1.2 billion to upskill more than 300,000 employees by 2025 to help move them into higher-paying, in-demand jobs.
For more information on Amazon’s Career Choice program, visit: nu.edu/amazon
Strategic Capabilities Office transfers Overlord
unmanned surface vessels to U.S. Navy
The U.S. Navy has taken over leadership of a Department of Defense program aimed at converting large commercial ships into unmanned and autonomous vessels.
The DOD Strategic Capabilities Office (SCO) transitioned the Ghost Fleet Overlord Program to the Navy Program Executive Office, Unmanned and Small Combatants during a ceremony at Naval Base San Diego.
As part of the transition, SCO handed over to the Navy office two Overlord prototypes for their continued development and fleet experimentation to inform the service branch’s medium and large unmanned surface vessel programs.
Jay Dryer, director of SCO, explained that the changes will also provide the program with Navy-wide resources to advance autonomous technologies and deliver a USV capability to sailors.
Vice Adm. Stephen Koehler, commander of the 3rd Fleet, pointed out that unmanned systems will support manned platforms as teammates in the future Navy fleet.
Palomar Health President and CEO selected
as one of the Top 25 women leaders in health care
Palomar Health President and CEO Diane Hansen has been selected as one of the Top 25 Women Leaders in Healthcare for 2022 by Modern Healthcare.
This award honors female executives who are guiding health care delivery improvement across the country. The annual program recognizes leaders from all sectors of the industry, spotlighting their professional accomplishments and contributions to their organizations and communities.
Hansen stepped up to the role as President and CEO in 2017 and under her direction, Palomar Health has grown into one of the most distinguished integrated health care systems in San Diego County.
Hansen stabilized Palomar Health’s finances and spearheaded service expansion. She boosted operating income by 214 percent, or $22 million, via contract negotiations. She also reinvested net revenue into multiple service lines, including behavioral health, rehabilitation and emergency care. Her oversight of the construction of three medical office buildings brought care closer to patients’ homes, while her contract negotiation skills created the region’s largest physician network group.
Terry Whitaker named associate vice
president of (W)right On Communications
(W)right On Communications has added Terry Whitaker in the role of associate vice president, leading the agency’s lifestyle practice group, which includes hospitality and tourism, senior living, wellness, higher education and major events.
Whitaker, a communications veteran with more than 18 years’ experience, brings a passion for creative thinking, fresh ideas and satisfied client partners.
Before joining the (W)right On team, Whitaker was based in Sydney, Australia where he represented American brands including the NFL and MLB as well as Visit California, Budweiser, IBM, TEDx and others.
Whitaker’s work has been honored with a Bronze Media Lion Award at the Cannes International Advertising Festival.
(W)right On Communications is also recruiting for two open positions, a senior communications strategist supporting its B2B group, and an experienced communications coordinator or strategist to support its Lifestyle group.
Air Education & Training Command plans
$195 million contract for small business
A U.S. Air Force command has issued a request for proposals for the small business community for a $194.5 million multiple-award contract opportunity to train military aircraft operators and maintainers. The Air Education and Training Command plans to host a virtual preproposal conference on March 16 to discuss the potential 10-year acquisition program with interested offerors.
AETC said the upcoming program will cover flight and simulator training for commercial off-the-shelf airframes and multi-engine pilot, instrument rating, recurrent training and basic and operational maintenance courses at locations worldwide to be determined on individual task orders.
Jamul Indian Village Development Corp.
refinance attracts multiple lenders
On Feb. 10, 2022, the Jamul Indian Village Development Corp. (JIVDC), owner and operator of Jamul Casino, closed on a refinance with a syndicate of commercial banks led by Western Alliance Bank. The other lenders were U.S. Bank, Nevada State Bank, KeyBank, First-Citizens Bank & Trust Co., and Columbia State Bank.
JIVDC was able to retire all of its high interest pre-development debt and consolidate its financing in a single low interest loan. With this refinance, the JIVDC was able to pay off the entirety of its high interest rate loan with funds from the refinance and significantly reduce the interest rate on its debt, dramatically improving the financial future of the Jamul Indian Village.
This transaction is the second refinance the JIVDC has completed in just over a year. A previous refinance completed in 2021 took approximately a year to close after pandemic-related delays.
Port of San Diego unveils $3.5 billion Seaport plan
The Port of San Diego released its plan for a revamped, mixed-use Seaport San Diego. The $3.5 billion project will include an observation tower, floating docks and fixed piers, retail and restaurant space, a public beach, 15 acres of parks and open space, and more than 2,000 hotel rooms.
San Diego Padres offer $35 million for Tailgate Park,
plan a $1.5 billion residential project
The San Diego Padres development team has reached a $35.1 million deal with the City of San Diego to purchase a four-block East Village parking lot known as Tailgate Park. The $1.5 billion project, dubbed East Village Quarter, will house 1,800 apartments, 1,620 underground parking spaces and a 1.3-acre park.
Mesa College named as 2020-2021 top producing
institution of Fulbright U.S. scholars
On Feb. 28, the State Department announced the 2021-2022 Fulbright Top Producing Institutions, naming San Diego Mesa College as a Top Producer in the Associate’s Degree category. The U.S. Department of State announced the availability of the lists of more than 125 U.S. higher education institutions that sent the most Fulbright U.S. Students and U.S. Scholars abroad in the academic year 2021-2022.
“Mesa College is proud of its legacy of Fulbright Scholars and welcomes this important recognition,” said Pamela T. Luster, president of Mesa College.
The lists of Fulbright Top Producing Institutions highlight the Fulbright Program’s strong institutional diversity and impact on American communities. Fourteen U.S. community colleges, one Tribal college, and three special focus four-year institutions also sent Fulbright U.S. Scholars abroad in 2021-2022 and are featured. View the full list of institutions by category.
The State Department’s Bureau of Educational and Cultural Affairs, in collaboration with the Institute of International Education, compiles the lists. The Chronicle of Higher Education publishes the lists in its online and print editions.
New cancer screening and diagnostic
testing center opens in La Jolla
Exact Sciences Corp. opened a new cancer screening and diagnostic testing center in Torrey Pines on Feb. 25. The company plans to use this additional laboratory space to advance early detection, minimal residual disease (MRD) cancer recurrence monitoring, therapy selection testing, and design of the company’s proprietary blood collection tubes.
This effort includes the expansion of Exact Sciences’ research and technology initiatives of cancer detection driven by biomarker discovery and advanced technology assessments, as well as the development of MRD tests capable of detecting residual disease from whole blood.
“We are thrilled to expand Exact Sciences’ presence in San Diego, a biotechnology hub with a deep talent pool,” said Kevin Conroy, chairman/CEO of Exact Sciences, whose new facility is on N. Torrey Pines Road. “Our initial focus for this state-of-the-art research and development facility will be to develop next-generation cancer diagnostics to help patients and physicians make better treatment decisions and more effectively monitor disease recurrence. We plan to double the number of our San Diego-based employees.”
Southwestern College awarded funding to study
feasibility of affordable student housing at four campuses
Southwestern College said it will receive planning grants totaling nearly $1 million that will fund the exploration of affordable student housing communities across its four campuses.
Following the receipt of the funds, which will be provided through the Higher Education Student Housing Grant Program, Southwestern College will plan the feasibility of developing housing on or near its campuses in Chula Vista, National City, Otay Mesa and San Ysidro.
Each community will be developed according to the needs of each campus, with some communities to include family housing options and others to include employee housing. Proposed projects are expected to include additional services, including upgraded parking structures, a cafe, laundry facilities, health care, child care, multi-use conference rooms and student support service centers.
