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Microsoft Not Planning on Xbox Cloud Gaming App for iOS Because There's 'Not Room' for Monetization

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Microsoft does not plan to bring an Xbox Cloud Gaming app to iOS at this time because there's no opportunity for monetization, Microsoft Gaming CEO Phil Spencer said in an interview with The Verge. When asked whether Apple's recent app ecosystem changes in the European Union make "room" for Xbox Cloud Gaming on iOS, Spencer said that monetization was an issue, and that the Digital Markets Act forcing Apple's updates does not "go far enough to open up competition."

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There's not room for us to monetize Xbox Cloud Gaming on iOS. I think the proposal that Apple put forward -- and I thought Sarah Bond's comments on this were right on -- doesn't go far enough to open up. In fact, you might even say they go the opposite direction in some way, but they definitely don't go far enough to open up competition on the world's largest gaming platform.

We will continue to work with regulators, and Apple and Google, to create a space for alternative storefronts. I'm a big fan of how Windows works, and you've got a Microsoft Store on Windows, you've got Steam, you've got the Epic Games Store, you've got GOG. You have alternatives, and I think alternative ways for people to buy things creates goodness for consumers and creators. I think the largest platform for gamers, which is mobile, should have the same.
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Spencer said that earlier comments from Xbox President Sarah Bond were "right on." Back in January, Bond said that Apple's policy is a "step in the wrong direction." According to Spencer, Microsoft plans to continue to work with regulators to "create a space for alternative storefronts."

In the European Union, the Digital Markets Act requires Apple to allow for alternative app marketplaces and alternative payment methods, but Apple is requiring developers who opt to use an alternative app marketplace to agree to new business terms that include a Core Development Fee of .50 euros per user. Companies like Spotify and Epic Games have criticized Apple's implementation of the DMA's requirements. Spotify CEO Daniel Ek said that Apple's plan is a "complete and total farce," while Epic Games CEO Tim Sweeney said Apple's implementation is a "devious new instance of malicious compliance."

Alongside the changes in the European Union under the DMA, Apple also changed its App Store policies around cloud gaming apps. Apple now allows streaming game apps on the App Store worldwide, with the apps able to offer a selection of games from within a single app. Previously, cloud gaming services were only available via a web interface.

Article Link: Microsoft Not Planning on Xbox Cloud Gaming App for iOS Because There's 'Not Room' for Monetization
 
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https://www.macrumors.com/2024/02/15/xbox-cloud-gaming-ios-microsoft/
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"I'm a big fan of how Windows works, and you've got a Microsoft Store on Windows, you've got Steam, you've got the Epic Games Store, you've got GOG."

What else could he possibly say? If Microsoft could snap their fingers and pull every single windows app/program into a walled garden store, they would, shoulda, coulda, woulda.
 
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Apple's initial stab at compliance is just a silly first offer. In March the EU is supposed to announce their appraisal of what Apple is doing and I expect them to rightly smack down garbage like the "Core Technology Fee" (you and I pay that when we buy our high-profit iPhones). Xbox will be on iOS in the EU soon enough.
 
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I think parts of the “walled garden” will become a real problem for Apple in the near future if they stick to their guns. The European rules are confusing and aren’t satisfying larger companies. With Android phones getting really, really great nowadays, Apple might want to consider opening up the platform before they begin to lose money and market share to their ever-improving (and more open) competitors.
 
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ps3zocker said:
What? They literally can monetize it because you have to subscribe to Xbox Cloud gaming to use it and they can offer the app for free without paying any fees.
What else do they want?
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Because they have to pay royalties to Apple in a sense (the Core Technology Fee) even through a Marketplace.|

Not a fan of Microsoft or their CEO, but they're right.
 
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MacProFCP said:
I'm not all against Apple on this one, but Microsoft's response is EXACTLY how you get change. If people stop developing for iOS due to the costs involved, that will certainly get Apple's attention.

If you don't like the iPhone store... don't develop for it.
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Nothing stopping from MS offering the app via side-loading and not having to use Apple's payment system. The new DMA allows this. The only thing MS would have to pay Apple is 50 cents per app download per year (1st one million downloads are no charge).
 
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vertsix said:
Because they have to pay royalties to Apple in a sense (the Core Technology Fee) even through a Marketplace.|

Not a fan of Microsoft or their CEO, but they're right.
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But that's an entirely different thing. A marketplace would not solve the issue for their cloud service, which would entail purchasing or downloading free games and not streaming them. With Xbox Cloud Gaming they could offer the app for free, pay no fees and users could log in with their existing subscription from their Xbox account, or optionally subscribe via the App Store, albeit with a 15/30% fee.

I think they just want to push for even more legislation or this their way to sunset cloud gaming. It has not really worked out in the big way they wanted it to be.
 
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It’s funny how these monopolies crying about how closed off Apple is, and how they want to keep all their money to themselves. Didn’t Microsoft buy 2 of the biggest gaming studio? Don’t they have sole control of their property and how to distribute, charge, and policies they implement for those services (like their cloud gaming). They poked the bear, and thought it would hand them all of its honey.
 
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smulji said:
Nothing stopping from MS offering the app via side-loading and not having to use Apple's payment system. The new DMA allows this. The only thing MS would have to pay Apple is 50 cents per app download per year (1st one million downloads are no charge).
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That's only in the EU which is a small market compared to the US and China.
 
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ps3zocker said:
What? They literally can monetize it because you have to subscribe to Xbox Cloud gaming to use it and they can offer the app for free without paying any fees.
What else do they want?
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Exactly, it’s already monetized. However there would likely be a big uptick in server traffic if a portion of the iOS user base suddenly became clients and they don’t want to cover those costs for free.

I don’t know why that traffic would be any different than underpowered laptops, Android phones, etc, but that’s probably what they are mulling over.
 
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hieranonymous said:
He’s a big fan of how Windows works … except that’s not even how Xbox works. Game consoles are arguably even more locked down than iPhones. This feels like misdirection.
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That was litigated at length during the Microsoft/Epic lawsuit. You're not covering any new material here.
 
erikkfi said:
Apple's initial stab at compliance is just a silly first offer. In March the EU is supposed to announce their appraisal of what Apple is doing and I expect them to rightly smack down garbage like the "Core Technology Fee" (you and I pay that when we buy our high-profit iPhones). Xbox will be on iOS in the EU soon enough.
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Apple phone support, stores and those strikingly beautiful logo stickers included in some products also factor into the device cost.
 
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hieranonymous said:
He’s a big fan of how Windows works … except that’s not even how Xbox works. Game consoles are arguably even more locked down than iPhones. This feels like misdirection.
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It‘s funny how Microsoft mirrors Apple in this case exactly. Their personal computers are open but their consoles are closed. Most people buy digital downloads, and the only place you can get them on an Xbox is the Xbox store.

There are already solid rumors that both Sony and Microsoft are removing the disk drive completely on next Gen to completely end the resale of games which cut into their margins big time.

I think the only reason Microsoft is making less waves here in the US is because the US will include gaming consoles into the DMA unlike the EU.
Epic of course wants this as it would allow an Epic store on XBoxes And PlayStations

Sony has stayed relatively quiet because they know what would happen and has probably emailed MS asking them to shut up. Lol
 
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