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Epic Games Asks Apple to Restore Fortnite in South Korea Following Ban on In-App Purchase Requirement [Update]
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I don’t think any new fees would (only) be fixed ones. They will probably vary by number of downloads or number of clicks on a buy link some other variable. Because ond way or another Apple will want to see the least possible impact on its bottom line from this.
Apple should thank the high heavens that this is the highest-profile incident of remotely activated functionality to date. You think a company’s own internal payment system is bad, just wait until someone uses it to ship an actual security exploit in spite of Apple’s toothless app review.
Apple doesn’t like it when Qualcomm charges then based on a percentage of the final device value. They sued them to hell and back too, just like Epic.
Apple is willing to pay, just not in a way that subsidizes its smaller competitors, and should be based on the actual fixed component price.
Bill based on service rendered is very fair to me.
Hah? Just offer your game for free on App Store, with in game micro transactions based on tokens/coins, but without a way to replenish tokens. Note in the page that those tokens cost real money, but don’t mention where they can be purchased.Ok, so let’s see. Just don’t offer App Store downloads cause users will figure out how to get their favourite games, whether free or with a fee. Wait, is this not possible?
Just like TikTok coins are 30% cheaper off iOS, but they do t tell your that in the app. You can buy it elsewhere and it will sync back to your iOS account.
Except, unlike Amazon, Epic doesn’t actually make their own devices or platforms. They rely on platforms and devices others make.
What a genius idea! Epic should not offer anyone to buy coins because people use products and platforms others use. The only way to get coins is…on the same devices Epic was avoiding.
FYI, the concept behind generating revenue is to make it easier for people to spend money. Not the other way around. You should know that since you have all those econometrics degrees.
Those are all “fixed costs”, because they are not tied to Epic’s in-game revenues/transactions.
People will purchase when they want to purchase. Fortnight is multi-platform. All they need is a web portal that’s mobile-first for people to login and click add $20 to the account using saved payment information.
Or they can set up, if balance is below $10 automatically top up another $20, etc.
All you need is to foster a new user behaviour.
Fixed costs are costs that don’t change by any variable. So for example the developer account costs are always X dollar per year. The costs I’m describing above do change and are variable. And depending on what Apple decides to ask, they can also impact Epics revenue. For example if Apple asks hosting/affiliate fees when a user buys through a different payment method, that directly impacts revenue. I don’t expect Epic to agree with that despite that such a step by Apple can be expected.
They need to ban purchasable in-game currency or at least ban the sale to under 18’s. Or, they need an option where you can cancel your account and have all of your money refunded. Epic are a scourge who took advantage of the race to the bottom and made millions from in-game currency from kids with dumb parents who let them buy this crap to keep up with their similarly dumb friends.
The nice thing about the App Store today is that Apple collects the money, and they send the developer their App Store income with the 15% or 30% fees subtracted. The money they get from Apple is all theirs.
But it's gonna be quite messy if developers have to setup accounts with Stripe, PayPal, or whatever just to handle the payment... and then they have to turn around and pay some fee back to Apple for hosting, APIs, or whatever.
Of course major corporations (eg Netflix, Spotify, Epic, etc) already have these payment systems in place. They process millions of dollars a month on their own.
But it's the small developer who will have to deal with all this new stuff if Apple's rules are forced to change.
Maybe Apple will make different packages depending on what you need.
Imagine a "full service" package like what we have today... where Apple handles everything in the App store for a fee.
And maybe an "app-only" package where Apple hosts the app... but the developer is in charge of collecting money. But then the developer will be getting a bill from Apple every month.
Ugh... what a mess.
It was so simple when developers were just charged a flat fee.
¯\_(ツ)_/¯
You really need to find equivalent examples. App Store fees apply app by app basis, right? Would you say it’s ok for Apple to charge developers based on the total revenue that developer makes?
Qualcomm was supplying the same chips to others at a much lower rate. In world is that fair to you? If you needed new Michelin tires for your car, would you be happy if the mechanic charged you based on the price of your expensive BMW or charge you what the tire actually costs? I will wait for your answer.
By Epic’s own testimony, most of their in app purchases are impulse purchases made by kids with average age of 13. That alone discredits your whole argument.
Be careful what you ask for is all I'll say. The law of unintended consequences will take of this.
Nah, if you have to, I meant fixed costs and usage costs. No revenue sharing of any kind.
That’s not the type of money you want to eat anyway.
Also, user behaviours change as the platforms change.
No one cared about dark mode until people cared about it.
No they simply take advantage of their market position to demand a 30% cut on in-app purchases, knowing that smaller companies have to pay up. Obviously, it's not abuse because it's Apple but it is when other companies do it.
Exposure to customers alone are a privileged promotion on its own. Promotions doesn’t have to be paid or featured App Store placements. Same way hosting your storefront on Amazon will have opportunities without being sponsored. Don’t underestimate the power of just being part of App Store. Your app automatically gains trust and confidence of the user while being presented to them.
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That’s exactly the type of money Epic wants to eat. That’s their target market!!!
We are talking about games and impulse purchases made by young kids who spend their parents’ money. Their behavior doesn’t change. Games may change but not their behavior. We aren’t talking about high-rise jeans making a comeback and going out of fashion in few years. Gamers who play these games get older and are replaced by other young users. Same cycle.
Sure, but I can think of some very creative forms of fees and probably Apple can too. Again, I expect Apple will want minimal impact on their bottom line and if so they will come up with something that probably won’t please Epic.
They have that option too. They don't want to lose the impulse buys so they want in-app purchasing, but they don't want to lose 30% of their income for the privilege.
Now what would crack me up is if Apple said "sure you can use your own in-app purchasing, but keep in mind you still owe us 30% of revenue"