A novel idea to prevent race to the bottom on Mac App store

Discussion in 'Mac Apps and Mac App Store' started by Mad Mac Maniac, Oct 22, 2010.

  1. Mad Mac Maniac macrumors 601

    Mad Mac Maniac

    Joined:
    Oct 4, 2007
    Location:
    A little bit of here and a little bit of there.
    #1
    One area that has been critizised about the app store is that "race to the bottom" mentality. Apps need to cost under 5 bucks to be really successful. This means we don't get apps or games that are as high of quality as computer apps and console games, because there just isn't the incentive for the devs to create them. Now with the release of the Mac app store this has been drawn under more scrutiny wondering if it will be the same. Well in under 30 seconds I have devised a simplistic approach to how Apple can drive more innovation by driving incentive for higher paying apps.

    The more expensive your app is, the higher your share of the revenue split is. All apps now have the 70/30 split. 70% to devs and 30% to apple. Well maybe if your app cost >= 9.99 it would be a 80/20 split. or >= 19.99 a 90/10 split, or >=39.99 a 95/5 split.

    Those are just rough, randomly picked numbers. I'm sure Apple could create something more scientific. Maybe instead of tiered it would be gradual. Like every $1 above $9.99 the dev would recieve an extra 1% (not to exceed 95% or something). This would be better I think because it would create more competative pricing instead of just sticking to those predetermined levels.

    I know this would cause apple to give up revenue but if they want to develop a proper culture of high quality games/apps then I think this is needed. Especially because Apple claims they only charge the 30% to maintain the app store not for revenue. Well every .99 app gives them .33 while every 49.99 app gives them 15.00, but they both should cost the same to apple in overhead...

    Anyone think this would be a good idea? I should work at Apple huh?
     
  2. GGJstudios macrumors Westmere

    GGJstudios

    Joined:
    May 16, 2008
    #2
    Apple sure wouldn't. There's no way they'll take only 5-10% vs 30%, because there are plenty of developers who will accept Apple's terms. Not to mention the fact that developers would be overpricing their apps, just to get a higher percentage. A higher price doesn't mean better software.
    With ideas like this, you wouldn't make it through the interview process.
     
  3. Mad Mac Maniac thread starter macrumors 601

    Mad Mac Maniac

    Joined:
    Oct 4, 2007
    Location:
    A little bit of here and a little bit of there.
    #3
    I know this would cost apple to lose some revenue but they have proclaimed many times that they make their money on the hardware and they provide cheap software to drive hardware sales. the 30% is supposedly only to pay for the overhead on the app store.

    I'm not saying that it would be easy for Apple to give up free money, but I think that the fact that it will driving many more higher quality apps will be far adventageous to the consumers and even apple. More high priced apps = more rev to apple (in the long run). I mean if I have a high paying app that is successful what incentive do I have to add it to the Mac app store for them to steal 30% of my money. More high quality apps = drives the sales of the devices. This is really more appropriate for iOS devices and not really Macs.
     
  4. GGJstudios macrumors Westmere

    GGJstudios

    Joined:
    May 16, 2008
    #4
    This is exactly why you won't see all Mac apps in the Mac App Store. Plenty of good apps will never participate in Apple's program. And plenty of free apps will remain free. The App Store will not be the only source for Mac software.
    Again, higher prices do not guarantee that app quality will be better. There are plenty of free apps today that outperform paid apps. Price doesn't ensure quality.
     
  5. Mad Mac Maniac thread starter macrumors 601

    Mad Mac Maniac

    Joined:
    Oct 4, 2007
    Location:
    A little bit of here and a little bit of there.
    #5
    and wouldn't apple want to get some of the revenue from these well established apps? even if it were only 10%? I mean 10% is better than 0%. and I know Apple will need to have many more app devs participate to make it cost effective versus the fewer devs at 30%, but in my humble opinion I think that will happen. especially because it will draw in the higher name, more well established (see: higher selling) apps.

    Right of course not. and the market will determine what is overpriced and what isn't. it's the incentive to bring the higher cost apps to the app store, and the incentive to create higher quality apps.
     
  6. DerekS macrumors 6502

    Joined:
    Jun 25, 2007
    #6
    Race to the Bottom

    The fix is, and has been, simple. Charge more to get in the program.

    Like $5000.

    Nobody is going to make 99c ******** fart apps if they have some investment in the platform that they want to recoup.
     
  7. Arran macrumors 68040

    Arran

    Joined:
    Mar 7, 2008
    Location:
    Atlanta, USA
    #7
    I imagine the 30/70 split would apply to one-man-and-his-dog sort of operations: The 30% gives them a no-hassle route to market.

    Established software houses would negotiate their own deal, IMHO.
     
  8. Brien macrumors 68020

    Brien

    Joined:
    Aug 11, 2008
    #8
    I don't know. But I'll be pissed if the birth of a Mac App Store leads to a flood of fart apps and everything is driven down to 99¢. There's a ton of quality software right now that would suffer.

    If Apple would make navigating the store easier then people wouldn't have to compete on price, for one. I do agree the developer program is too cheap.
     
  9. baylor1984 macrumors newbie

    Joined:
    Oct 25, 2010
    #9
    Mad Mac, please contact me. I am a writer for Baylor's school paper and I'm doing an article about this. I would like to interview you.
     
  10. Eldiablojoe macrumors 6502a

    Eldiablojoe

    Joined:
    Dec 4, 2009
    Location:
    West Koast
    #10
    Why don't you click on his username so you can PM or email him directly.

    I hope you aren't the "Tech Editor" for the paper.
     
  11. GGJstudios macrumors Westmere

    GGJstudios

    Joined:
    May 16, 2008
    #11
    He's not eligible to use PM with only one post in the forum.
     
  12. JustSomeDude macrumors regular

    Joined:
    Apr 10, 2010
    #12
    It's a novel idea, but it seems like you would likely have the same situations. I think people would still try to undercut others, which would lead many of the higher priced apps to reprice lower and cause the cycle to repeat. Also, now competitors could sling mud about price gouging('Our competitor not only charges more, but they get to keep a higher percentage of the sale- they're gouging you. We can sell you an equivalent/better product at a better price.')

    Of course, it's supposition on both of our parts. Maybe your idea would work - I'm up for trying ideas to encourage developers to write better apps.
     
  13. Mad Mac Maniac thread starter macrumors 601

    Mad Mac Maniac

    Joined:
    Oct 4, 2007
    Location:
    A little bit of here and a little bit of there.
    #13
    umm... how do you propose I do that? Your one post leaves you lacking the ability to PM and apparently you have blocked people from contacting you through email.

    PS. As a recent (2009) baylor alum I felt compelled to respond to you.
     
  14. tripjammer macrumors 6502a

    Joined:
    Apr 28, 2010
    #14
    There are plenty of awesome $.99 Ipad\Iphone apps in the the app store...and there will be plenty of awesome $.99 to $4.99 apps in the Mac App Store...you can make just as much money on a .99 app as a $299 app.....

    The Mac App Store will be a gold mind for apple and developers...everybody else...google, microsoft, and blackberry will follow suit...
     

Share This Page