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Imagine each individual movie or episode of TV shows in Netflix would 'un-lock' for 'full content viewing' only after an IAP... If that would be the case, then Apple would ask Netflix to do the same -- submit each content item separately in App Store (along with the mandatory review).

OTOH, I agree there should be a way that Apple should come up with to allow their hardware to be used for better (AAA) gaming experience...
This isn’t an issue. The android version of the xcloud app already restricts any type of IAP. MS was perfectly fine with doing the same for iOS.
 
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And that's the biggest problem.
Apple want games and applications to be local apps. They want developers to use Apple's developers tools and APIs. They want them to be Apple developers and not Xbox developers. In addition it undermines the whole games = apps which integrates tightly with the App Store and the operating system.

When I go to the App Store I expect to find every game which are playable on iOS in the App Store.
If I turn on parental control I epoxy it to work for every game.
If I turn on screen time I want to know how much time I spent on individual games.

I don't have any of these expectations of movies, music, podcasts or books.

Allowing xCloud only benefits Microsoft and xCloud users and Apple shouldn't care about them at all.
Lots of xcloud users are also apple customers. So I don’t think it’s that cut and dry. It’s definitely a balancing act. To be honest xcloud via a native app would allow much better parental controls than via browser. MS would have definitely honored age range restrictions, via limiting games available via the app. To be honest I’m not apposed to the individual app per streaming game. People usually only alternate between 1-3 games until they move on to another game.
 
I’ve always find it quite interesting how, as long as one is willing to ignore the differences between two things, they’re exactly the same.

Like, a tomato and a Chrysler LeBaron. Ignoring all the differences between them, you won’t be able to find a difference between them.
 
As a developer, I don't see how creating separate apps would be any problem. Sure, it's more work than using a single app, but not that big of a deal especially for a big company like Microsoft.

They would have to write 99% of the code for each app once, the rest is just config for what game needs to be loading, image material, descriptions etc. They could automate updating the apps when the main code needs to be updated.

Nintendo does this as well. They stream some of the games you can buy for the Nintendo Switch.

And: "an incredibly negative experience for customers"? How so? I could search for Halo and get a bunch for xCloud games in the App Store like I'm used to with every other game. Reviews about the game right there. The only 'hurdle' is needing to login to be able to play. Big deal.

Loss for Microsoft if you ask me.
As a customer I want to own the software. This sort of service is another step backward for consumers.
 
But it's already been established that Apple does give select developers additional privileges and exceptions for their apps where Apple sees a benefit to themselves in doing so.
Yes they do, rarely. Amazon is the first example I can think of. Still glad they're not doing it more.
 
But, by all means, explain to me how it’s any different to stream a game from Microsoft’s cloud than it is to remote into a cloud-based Windows desktop from my iPad and play Minesweeper or solitaire.
They're different use cases. Microsoft sells these individual games through the app. They don't charge you per app you run over VNC. It's about how humans are using it, not the technology. To a user, xCloud is very close to running the app on the phone.
 
Yes they do, rarely. Amazon is the first example I can think of. Still glad they're not doing it more.
But even with Amazon, though Amazon brought up the concern and got changes made, Apple changed their rules not only for Amazon, but for anyone else that comes along with an “Amazon type” business model.
 
I’ve always find it quite interesting how, as long as one is willing to ignore the differences between two things, they’re exactly the same.

We can also argue the opposite. As long as one is willing to ignore what they have in common they are totally different.

The thing is, some people have a very sectarian view of things focusing only on one part of the equation. That is how they feel secure … gives them a sense of belonging and preservation … this makes them easier to manipulate.

Others don’t need that. Respecting the differences while acknowledging the commonality.
 
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It's about how humans are using it, not the technology.

Agreed.

Yet, once a little girl was asked to draw a Chicken. She draw a KFC nugget. True story. So if enough people do it, does it make it truthfull? Of course not, it would just make it easier to sell dogs as chicken.

The truth is that the difference between a game stream, a copy of a game (app) and a game is functionally useful. As it always has been.

There is no vantage point of the user in painting game streams as the same as Apps, as there isn’t for video streams of video copies. People also understand the difference between using a web App and a native App … they did with Java apps. Incredibly people also understand the difference between say Netflix service and a Netflix apps, Uber service and Uber App. So much so that to access services people are open to pay for apps, heck … are open to pay for devices. You see people are not as dumb. By virtue of the digital people still need to use a nice OS, nice câmera and device like SJ predicted, but know very much the difference between iOS and say Apple Mail, heck even App Store.

Still this does not mean that things needs to be sold separately or together (Bundle). That is driven by product / service sales strategy rather then nature of each product or service. Some practices are acceptable, other aren’t in time. All human practices start as acceptable.

I understand that for Apple such hammer (App Store) / nail (App) relationship would be advantageous for all the reasons already explored. But the above is no less true because of it.

The App Store is like a hammer. Apple holds the hammer so everything needs to be a nail for them to charge on top… case in case everything needs to be reduced to an App even if its is not (game stream, a file, a video, a video stream … whatever). They will try eschew alll value / everything digital / chickens into a container called iOS App as much as possible and say “we are responsible for 30% of its value” … businesses, platforms, whatever. I know I would in such position given the possibility.
 
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We can also argue the opposite. As long as one is willing to ignore what they have in common they are totally different.
If one is fond of arguing, absolutely anything can be argued! Even that water, once you exclude all the ways in which the two are different, is exactly the same as an all expenses paid trip to Aruba. Arguing a point doesn’t make it so, though. It just makes it an argument.
 
Show us another instance of ”Amazon type”.
How about this. Amazon does a LOT of different things, they’re in a lot of various and sundry businesses. Pick one that has an advantage over competition where the App Store is related and I’ll go “AH! I hadn’t thought of that! Good on you!”
 
How would Apple make more money with this?
Certainly no services revenue would come to Apple.
Two ways. First, had the plan of every app being in the App Store gone through they’d be making money off each app sale. Second, for those who signed up for the pass through iOS apple would get a cut.
The other more handwavy and debatable way would be that it would attract more people to spend money at the store because it is easy and accessible. Much less concrete tho.
 
Two ways. First, had the plan of every app being in the App Store gone through they’d be making money off each app sale.
The plan was actually more like what Netflix Games has going now. You can sign up outside the app, even already have an existing subscription, and when you pull up the app, you sign in and get access to the games, no more money changes hands for you to start playing.
 
Either the 3rd party would need to port them, or they wouldn't be offered via the App Store subscription.

And, realistically, MS themselves probably never intended to do any porting at all. How many of their 1st party games had they previously ported to iOS from PC or Xbox? Zero. They were looking for a huge exception/exemption from App Store rules or free publicity about their iOS streaming service via the "controversy" of it being rejected.
Completely stupid to run native, ported, inferior versions of the same game, and maintaining absurd amount of code based on an ridiculous decision
 
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How about this. Amazon does a LOT of different things, they’re in a lot of various and sundry businesses. Pick one that has an advantage over competition where the App Store is related and I’ll go “AH! I hadn’t thought of that! Good on you!”

Where is that written the the App Store policy?
 
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Apple will never dominate the gaming market.

Apple has the lead in the casual gaming market which is where the bulk of the revenue is accrued. Not exactly something to be proud of, but I think the impact of their their billion strong install base continues to be underestimated in situations like this.

How does one “dominate” the gaming market anyways? Revenue? Market share? Whichever platform can run doom eternal?
 
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