Epic VS Apple
While an 8% revenue cut should be enough to run a digital store profitably, most storefronts go 30%, even mobile app stores. This irks Epic Games co-founder and CEO Tim Sweeney, who openly questioned why Valve, Google and Apple take 30% off the apps’ revenue, while stating that the higher revenue shares on consoles make sense since the companies invest a lot in hardware, which is sold below cost, and marketing campaigns in partnership with publishers. One of the reasons Epic chose to open its own digital store was to demonstrate that they can operate at just 12% off the revenue. Once Fortnite shot to fame, Epic wanted to get it to as many people as possible, especially through their phones, though the revenue cut demanded by Google and Apple was a tough pill to swallow. When they released it on Android first, Epic offered it as a sideloaded package, to prevent Google from taking revenue from the microtransactions. Fortnite eventually came to the Play Store after many unscrupulous clones were found and on Apple’s App Store (since Apple doesn’t allow sideloading). But Sweeney retained his stance on the 30% cut, so prior to August 2020, Epic planned out a course of action codenamed “Project Liberty”, to force Apple and Google to either alter their policies or to initiate legal action.
On August 13, 2020, Epic updated Fortnite across all mobile platforms, to reduce the price of V-Bucks by 20% if players purchase directly from Epic. Within hours, both Apple and Google removed the game from their store fronts stating the bypass violated the terms of service. And the battle begins: Epic immediately filed a lawsuit against Apple (and a separate one to Google, but that’s a different story) for antitrust and anti-competitive behaviour in the United States District Court for the Northern District of California. Epic gained a lot of supporters who also have problems with Apple policy, such as Facebook and Spotify, while the court ordered Valve to hand over data on 436 specific Steam games to Apple.The trial started on May 3, 2021, but due the nature of the case and the ongoing pandemic, measures were made to keep the participants safe, such as limiting their number and using Zoom calls depending on the number of infections taking place. During the trial, a number of documents collected by Epic and Apple, revealing a few past inner workings within the gaming industry (some of which will be revealed in this edition). Some of these were meant to be sealed, but were misplaced into online public court records, forcing the judge to take steps to make sure that appropriately sealed documents were kept out of the public records. Talk about embarrassing.
Now, I’m not a judge nor do I know anything about the law. But what I do know is that the case will take a long time, for sure. As I stated, some of the things that were exposed during the first trial will be featured here, so look forward!
Apple Removes Shadow From Their Store... Again
During the bout between Epic and Apple, Microsoft tried to figure out how Shadow and other “interactive” apps were able to exist in the App Store while Apple refused to approve xCloud. Microsoft placed Shadow as an example, only to see it suddenly removed from the App Store. Xbox’s head of business development Lori Wright stated it wasn’t their intention, it was simply a byproduct. The removal wasn’t permanent, thankfully, but it wasn’t the first time Shadow got removed: Apple in fact removed it twice in the past year. Last year’s February, Apple removed the app citing “failure to act in accordance with a specific part of the Apple App Store Guidelines”. It happened again this year’s February, though the app returned a week later, with Shadow revealing it was because of a misunderstanding around the nature of the app. Shadow provides a full Windows 10 PC through the app, rather than just a library of games (like Boosteroid, a browser-based cloud streaming library of most games on the market, which can be played directly from the browser or a dedicated Windows app), allowing them to comply with the App Store guidelines. Valve also had trouble with putting their Steam Link app on iOS because Apple rejected it, since it allowed the users to access a whole game store, Steam, within Apple’s tightly controlled ecosystem. Apple did revise the rules and finally approved the app in May 2019. Meanwhile, Microsoft, Nvidia and Google continue to struggle with Apple, even after the company made one restrictive compromise: the companies have to submit individual games as separate apps through their streaming tech, to be bundled as a catalog-style app. Microsoft scoffed at this, calling it “a bad experience for customers”. This public spat boiled over to the courtroom, with Epic lawyers questioning Microsoft representatives about their struggle to bring xCloud to iOS. Microsoft now resorts to bringing it to web browsers, as a way to bypass Apple.
As a gamer who certainly can’t afford a high-end PC, Shadow became my favorite platform despite not being available in my territory yet, giving me hope that I can finally play the games my laptop can’t handle (the only game it can handle is Brawlhalla). Though Wi-Fi will remain a problem, someday I hope I can use Shadow to play amazing games, the types that aren’t available on Microsoft Store. And it would be a shame if people can’t use Shadow on their Android or iOS. The removal isn’t permanent, thankfully, but it’s a reminder of Apple’s pickiness on what platforms they put on their App Store, which could potentially give Google the upper hand. For now, iOS users can resume using Shadow to game all that Steam offers… and someday, make Steam into its own platform.
Microsoft Removes the Paywall... At Epic's Request
In the weeks leading up to the trial against Apple for their 30% revenue cut, Sweeney sent an email to Spencer teasing something big and asking if Microsoft can time free multiplayer with Fortnite season 14. Sweeney said “Epic has certain plans for August that will provide an extraordinary opportunity to highlight the value proposition of consoles and PCs, in contrast to mobile platforms, and to onboard new console users. While I can’t share details with any third party at this point, I give you Epic’s assurance that our efforts will be positive and supportive of Microsoft, Xbox and Windows.” Spencer replied that they want to partner with Epic, but implied that Xbox Live wasn’t ready to go free multiplayer just yet. And Sweeney responded that he understood and that Microsoft will enjoy the firework show. Now, that firework show did kick off after the launch of season 14 for Fortnite, Epic pulling Apple to court in an ongoing trial. Microsoft unlocked free multiplayer in April, though it wasn’t as simple as Epic would’ve hoped.
Here’s something to take away from this: if Spencer went along with the plan, it seemed likely that Fortnite would’ve opened up to non-Gold subscribers at the same time that Apple pulled the game from their App Store, urging iOS players to switch to Xbox consoles (well, most other consoles; it’s an example). Since I gave up mobile gaming (on mobile devices, especially with a short battery span), I much prefer the console experience, even more now that the paywall is no more. As for making me play Fortnite… still a long way. I’m just happy I can now online on free titles, which will be highlighted in the Triple Game Recommendations corner. Enjoy the freedom!
Epic's Giveaways Pay Off Massively
The document covers the 38 games given away for free since the store’s launch. Epic’s CEO Tim Sweeney revealed the company paid a flat fee to each developer to give away their games, instead of paying per download. According to the document, Epic paid over $11.6 million in total for the games, gaining almost five million new users signed up to the store in return, which translates to Epic paying $2.37 for each new user it signed up. Now, there is a huge variance between how much Epic paid for those giveaways, such as paying $1.5 million to give away the Batman Arkham trilogy, $1.4 million for Subnautica and $1 million for Mutant Year Zero. Then they paid much less for indie titles like Super Meat Boy ($50.000), Jackpot Party Pack ($60.000) and Fez ($75.000). But here’s one of the biggest giveaways Epic did: Grand Theft Auto V! It was so popular, the store was knocked offline for a few hours as everybody tried to claim their copy! In addition to the giveaways, Epic even paid $146 million in advance for a deal that included Borderlands 3 exclusivity. Which means more people will sign up. Well, those who have a good PC, that is. Heck, it’s being revealed Epic is even trying to get first-party exclusives from Sony, Microsoft and Nintendo (though they described the latter as a moonshot) on their storefront. Which means some can stop buying consoles.
While it certainly helped Epic grow their audience, it’s a bit of a cheap tactic to bait people through free games. Especially on PC, which is the most expensive piece of hardware to get and upgrade (you have no idea how some components are pricier than others), which could increase the number of PC players out there. It’s more or less cheating, especially for Microsoft Store and Steam (the latter offers free games… for a limited time). If you want to support the storefronts, just buy the game, be it full price or at a sale.
Xbox Cloud Gaming Without Fortnite
During the legal battle, Epic’s vice president of business development Joe Kleiner was questioned over Fortnite’s absence on xCloud. He confirmed it was a deliberate decision, and again, because Microsoft’s xCloud competes with Epic’s offerings. Epic’s partnership with Nvidia to bring Fortnite, alongside other games from its PC store, to GeForce Now, benefits Epic since they get revenue from game purchases or from in-game purchases, instead of Nvidia. And as far as Epic is concerned, the games simply run on a PC. Since Microsoft doesn’t allow rival game stores on Xbox or xCloud in any form, with all the transactions going through Microsoft, it’s unlikely Epic will ever allow Fortnite on xCloud. In case portability is your thing, your best bet is a Nintendo Switch Lite, if you don’t already have one.
As I already explained, cloud gaming isn’t possible for me at this time, but because I own a Xbox One S, I’m not mad about it. Except it is a deal-breaker for iOS Fortnite players, who are now forced to cough up the cash to go in cloud in order to play the game. Heck, it may even contribute to the Switch’s sales for those people who want the game and play it portability, which is probably better than selling an arm or a leg to upgrade a PC. Because right now Epic is fighting to bring their game back to the App Store and Play Store.
Xbox VS Windows
During the trial’s third day, this question was imposed over and over during the testimony. On that day, Apple and Epic delved into the biggest question: whether saying iOS violates antitrust law would make every major game console an unlawful monopoly too. Apple’s attorney even warned Sony, Microsoft and Nintendo during its opening statement, saying that their business models were all fundamentally similar and if Epic wins, they’ll suffer. However, Epic called up Microsoft’s Xbox head of business development Lori Wright as a sympathetic witness. When asked about the iPhone, Wright divided computing devices into “special-purpose” and “general-purpose” devices - in a way which clearly defined iPhones as the latter.
The Xbox, as Wright describes it, is a special-purpose device. She told a judge: “You are basically building a piece of hardware to do a specific thing. The Xbox is designed to give you a gaming experience. People buy an Xbox because they want to play games.” As a result, Microsoft keeps tight control of what content users can access — it’s a “curated, custom-built hardware/software experience.” The market is also much smaller: tens or hundreds of millions sold, compared to “billions” of Windows devices. Later in the day, Epic engineering fellow Andrew Grant gave his own, similar definition of gaming consoles in general, calling a console “a single-purpose device for entertainment.” (which describes Xbox One to a tee)
Windows computers, according to Wright, are “general-purpose” devices. She said: “You’re buying it to do a wide variety of things, and that changes every day as new ideas are getting created. It can do a bunch of things already, and it has the aperture to do a bunch more things.” These platforms can support unexpected, emergent applications across more aspects of people’s lives, particularly when it’s easy to get an app onto them in the first place.
These distinctions hardly convinced the court, as Judge Yvonne Gonzalez Rogers asked seemingly skeptical questions about Epic’s hard lines between consoles and iPhones and Wright’s delineation of “general” and “specific” devices. It appears that Apple is even questioning Wright’s credibility.
For what’s worth, I agree with the distinction, since I mostly use an iPhone to watch YouTube and surf the Internet while using Xbox One S to game… and watch Netflix and YouTube on a bigger screen. I never game on the iPhone, simply because I prefer to use it for entertainment, and I definitely can’t use it for both without draining the battery. That’s right, in terms of gaming, the Xbox is superior (just look at the Xbox Game Pass).
Microsoft Reminds Us Their Consoles Are Profitable
Video Credit: Microsoft
During the trial, a Microsoft executive admitted they don’t see any profit from the console sales alone. When asked how much margin the company makes on the consoles, Lori Wright stated they don’t, confirming what was known for years: Microsoft sells their consoles at a loss. However, Microsoft is still making money from the business. A Microsoft spokesman told The Verge: “The gaming business is a profitable and high-growth business for Microsoft. The console gaming business is traditionally a hardware subsidy model. Game companies sell consoles at a loss to attract new customers. Profits are generated in game sales and online service subscriptions.” Sony also sells at a loss too, while it’s a profit for Nintendo, which is proven by Switch’s 84.59 million sales up to the last day of March. Microsoft wants to maintain its business model for Xbox and once attempted to push towards digital games for years. While it sided with Epic for the legal battle, it’s not like something good will come to Microsoft, since games like Fortnite are missing from xCloud due to Epic’s reluctance. The legal battle between Apple and Epic might as well be the beginning of a greater war over the digital future of game stores.
While I’m not surprised about Microsoft’s loss in console sales, it’s still astonishing to say the least. I really believe the Xbox One is a good value, especially because with just one account, you might be able to buy one Xbox One console and one Xbox Series S console, for device storage purposes. I mean, if you’re really unable to find an Xbox Series X, just swallow your stubbornness and get Xbox Series S at least until you can get an Xbox Series X, especially with Xbox Game Pass. With Xbox Series S, you can definitely play in a PC set up, especially using the keyboard-mouse combo. 512 GB is a little less than ideal, but it’s better than Nintendo Switch’s 32 GB.
Microsoft Now Takes 12% Off Their PC Store
The company revealed it’s lowering the PC store’s 30% revenue cut to 12% starting August. Head of Xbox Game Studios Matt Booty said “Game developers are at the heart of bringing great games to our players, and we want them to find success on our platforms. A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.” However, their console store revenue will still be 30%, since the business model is different from PC and the Xbox consoles are sold at a loss, offering marketing deals in return for a 30% cut from every software sale. The reduced cut on the PC side is exactly the same as Epic Games Store, which also aims to pressure Valve into lowering its revenue cut, although the cut Valve takes is reduced to 25% when sales hit $10 million and then 20% for every sale after $50 million. Even with a large cut, Steam continues to dominate the market share among many developers, though many don’t think the 30% cut is fair. Microsoft’s move will certainly pressure Valve further, but competing with Steam is still a big challenge, owing to Microsoft’s troubles to convince developers to list their games in its store, though the new cut might, if Microsoft can improve the poor experience for end users. Booty stated: “We know that we still have a lot of work to do, but based on the response from both PC gamers and PC game developers, we think that we’re headed in the right direction for this community with the investments we’re making.” Booty even teases a promising second half of 2021, which should be interesting to look forward to.
Since I’m definitely not a PC gamer and am happy to just use my Xbox One S, this does sound like a great first step towards the store’s improvement. Once Microsoft gives the PC store a makeover, it should convince the developers to bring more great games. One of the things Microsoft should deal with is dealing with hackers and cheaters, since their store doesn’t do enough to help game studios protect their games. And definitely improve the Game Pass for the PC users, since it’s already a priority for them at this time.
The Division Gets a Free Game for Console & Mobile
Ubisoft recently announced that they’re developing a free-to-play game titled The Division Heartland, which will be set in The Division’s universe, with a Division mobile game also in the works. The announcement was minimal in details, such as if the game will be a battle royale in the vein of Fortnite or Call of Duty: Warzone. The mobile game is equally unknown, but Ubisoft said that more details will be revealed at a later date, while confirming that Heartland will be coming to PC, consoles and cloud gaming platforms somewhere in 2021 or 2022. Since Fortnite makes billions of dollars for Epic, CoD Mobile reportedly made $10 million in 2020 while Warzone has 100 million players, it’s understandable Ubisoft wants a slice of that gold scene, though it remains to be seen if the new free Division games will be as popular. What is certain is that Ubisoft will continue to keep The Division’s world culturally relevant by developing content for The Division 2, as well as working on a movie adaptation which will premiere on Netflix.
Since I don’t know much about the first game or the franchise, I could definitely get to know it by playing Heartland… possibly. Should be a good game once I get a wireless keyboard and mouse. For now, I’ll wait for the movie to come on Netflix.
Triple Free Game Recommendations
Rocket League - One of the best online games that fuses soccer with rocket-powered cars. You can even play as your favorite franchise cars, from Mattel’s Hot Wheels to DC’s Batmobile. Even the DeLorean from Back to the Future! Or you can just build your favorite car from scratch with items earned in game or purchase.
Fortnite - The game that shot battle royale to fame and which shows no signs of stopping! No matter which one of the game modes you choose, you will have a blast… but you need to have good aim. Luckily for console users, this game supports keyboard & mouse controls.
Brawlhalla - Call it Super Smash Bros all you want, this game has surpassed it. It has casual modes, a special weekly mode, a training/tutorial mode and a shop. With real money, you can get Mammoth Coins for crossover skins, in other words, you can play as The Rock or any other IP characters. It’s a great starter!
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