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Microsoft Says Apple's 30% Fee Makes Xbox Cloud Gaming iOS App 'Impossible'

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Apple has allowed cloud gaming apps on the App Store since earlier this year, but cloud gaming services still haven't bothered making iOS apps. Microsoft recently explained why, telling UK regulators that it didn't bring Xbox Cloud Gaming to Apple's App Store because the rules are still too restrictive.

App-Store-and-XCloud.jpg

The UK's Competition and Markets Authority is investigating mobile browsers and cloud gaming, and put out a call for comments. Microsoft responded in late July (via The Verge) and said [PDF] that while cloud gaming apps are technically allowed, there are still multiple rules that cloud gaming apps can't comply with for "technical and economic reasons."

Microsoft's chief complaint is that the App Store rules require subscriptions and features to be made available on iOS devices with in-app purchase, which is "not feasible." A consumption-only situation where content is purchased on another platform and played on iOS is not allowed for cloud gaming apps.

Apple's 30 percent commission fee "makes it impossible" for Microsoft to monetize its cloud gaming service, and it is neither "economically sustainable nor justifiable."

Microsoft also complains about Apple's lack of support for alternative app stores and the limitations of web apps, such as an inability to access device hardware features.

Google also submitted a separate document in the UK, and it simply suggests that regulators focus on the iOS App Store rather than taking a look at Google Play.

Apple's own statement said that it "supports and encourages" cloud gaming services on iOS, and that there are successful cloud gaming services such as Antstream. Apple suggested that regulators revisit their thinking following its support for cloud gaming, which did happen after the investigation launched.

The UK will take Microsoft's comments and comments from other parties into account when making a decision in the ongoing mobile browser and cloud gaming investigation.

Article Link: Microsoft Says Apple's 30% Fee Makes Xbox Cloud Gaming iOS App 'Impossible'
 
Article Link
https://www.macrumors.com/2024/09/03/microsoft-cloud-gaming-ios-app-impossible/
J

JCCL

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Apr 3, 2010
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Maclver said:
Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Click to expand...
Hardly the same as a landlord. They are gatekeeping devices that the customers have fully paid for. We should be able to decide where we want to install software from. You don't want it, fine, I don't really care how you use your device, and you shouldn't care about what I want to do with mine either.
 
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WarmWinterHat

WarmWinterHat

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Feb 26, 2015
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Maclver said:
Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Click to expand...

Im a landlord, and this is nonsense. Your landlord owns the home you're living in. Apple doesn't own my iPhone.

I don't charge the current people who bought the house I built and sold back in 2014.
 
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Realityck

Realityck

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Joe The Dragon said:
30% when they not hosting or providing the games is way over the top.
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If the products are purely digital, not tangible, there really isn't any service or hosting being provided only thats its a digital locker for license to download software/media you are utilizing. Thats why this assumed 30% surcharge is not reasonable in today's world. Be very different if we were talking about packaged products to sell and ship to. ;)
 
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J

Joe The Dragon

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Realityck said:
In the grand scheme of things how many stores collect a nice tidy markup on the goods they sell? It's just if the products are purely digital, not tangible, there really isn't any service being provided only thats its a digital locker you are utilizing. Thats why this assumed 30% surcharge is not reasonable in today's world.
Click to expand...
what store takes 30% of each Propane refill after you buy an grill from them? or says you can only buy it from us?

Does best buy take 30% of your cable / sat / or streaming bill when you buy an TV from them?
 
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lonewolf12016

lonewolf12016

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What makes me laugh is everyone is picking on Apple for their 30% take totally forgetting how much Google take on the thier App Store……. It’s 30% by the way.
Also would like to point out….. Microsoft’s own App Store takes 30% of games sales.
This whole bashing just Apple for their cut they take whilst all the others are doing it needs to stop.
Then add in the Fact Microsoft are moaning about what Apple take, whilst taking the exact same cut on their own sales platform.
Kinda a joke really. But yes let’s all bash Apple whilst not relising they are all doing the exact same thing at the same %.
 
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acgmph

acgmph

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Around the world

Revenue Share​

Microsoft takes a 30% cut of game sales and in-app purchases for most developers publishing on Xbox. This means developers keep 70% of the revenue their games generate on the platform.

Fee Reduction for Some Developers​

In 2021, Microsoft announced they would reduce their cut to 12% for PC games sold through the Microsoft Store. However, this reduced rate does not apply to Xbox console games.

Free-to-Play Games​

Microsoft does take a cut of in-game purchases made through its platforms. Specifically, for games sold on the Microsoft Store, the company takes a 12% cut of the revenue from in-game purchases, which is a reduction from the previous 30% cut that was standard across many platforms. This fee structure aligns Microsoft more closely with the Epic Games Store, which also charges a 12% fee, and is part of a broader strategy to remain competitive in the gaming market, particularly against rivals like Apple and Valve.However, it's important to note that this 12% cut applies specifically to games. For non-game apps, developers can retain 100% of their revenue from in-app purchases unless the app is categorized as a game, indicating a clear distinction in how Microsoft handles revenue sharing between games and other types of applications.

Additional Costs​

Besides the revenue share, developers may incur other costs when publishing on Xbox:
  • Development kit fees
  • Certification and testing fees
  • Marketing and promotion costs

Comparison to Other Platforms​

Microsoft's 30% cut for Xbox games is in line with industry standards. Other major platforms like PlayStation and Nintendo also typically take a 30% share of game sales revenue.While Microsoft has reduced its fee for PC games, the standard 30% rate remains in place for Xbox console games as of 2024. Developers should factor this revenue split into their financial planning when bringing games to the Xbox platform.
 
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chrono1081

chrono1081

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brofkand said:
Apple's rent seeking behavior has to stop.
Click to expand...

Do you and others seriously not know what it costs to host an App Store with all the features apples App Store has? Why isn't anyone going after Google or Steam that charge the *exact* same amount? 30% is actually incredibly reasonable if you knew what people paid in the past. (It was around 95% by the way to a publisher, sometimes even higher).

Want to know who else charges 30%? Microsoft. For Xbox games.
 
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