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This reads as pre-planned and co-ordinated to me. My guess is Apple will soon introduce some reduction of platform fees as long as you comply to certain editori

This reads as pre-planned and co-ordinated to me. My guess is Apple will soon introduce some reduction of platform fees as long as you comply to certain editorial standards in your app, and everybody will be happy.

dehrmann 6y ago
If Apple charged 5% (which is still more than a credit card processor), I doubt so many companies would be complaining.
- guidedlight 6y ago
  Apple still needs to pay credit card processors. Avoiding most of the 30% cut is actually rather easy for consumers, but not for developers. App Store Gift Cards can be purchased from retailers with a 15% to 20% discount (https://www.ozbargain.com.au/product/itunes-gift-card https://www.ozbargain.com.au/product/itunes-gift-card). And those retailers aren't making a loss either.
  - cma 6y ago
    In many states gift card balances remain with Apple if they expire or are lost. They may make close to more money from that than the discount.
    - guidedlight 6y ago
      Apple gift cards don't expire.
      - cma 6y ago
        In some states they can earn interest on them, meaning they still effectively expire over time unless we hit deflation.
  - dehrmann 6y ago
    > Apple still needs to pay credit card processors. That's why I said 5%. They don't need to run it at-cost or take a loss from it, but considering it's a closed platform, it shouldn't be a massive profit center, either,
Rapzid 6y ago
I don't believe so.. As part of Epics business strategy since the Tencent investment they have been working to reduce license and distribution costs across the industry to the benefit of a lot of developers; and themselves of course. Now Epic is worth over $18b, has some VERY big name investors, and controls the most popular game on the planet. They have the power to sway public sentiment against Apple, a legal leg to stand on as far as anti-trust, deep pockets, and powerful friends. My guess, and hope, is that Epic takes Apple to the cleaners.
- coreblocks 6y ago
  Apple is worth 2 trillion if we are looking at market cap. They can literally buy out epic if they wanted to.
  - gpm 6y ago
    Not necessarily. Tim Sweeney owns more than half of Epic Games, and (presumably, I'm obviously not privy to what contracts he has signed) has no obligation to sell for any amount of money. He is also rich enough to have "fuck the world money" and not accept a price that is far above what his share in Epic Games is actually worth.
  - the_hoser 6y ago
    Only if Tim is willing to sell it.
  - ssivark 6y ago
    That would be a stupid strategy for Apple, for a multitude of reasons: 1. Fighting it out in court, and then paying damages is probably going to be cheaper than 18 billion USD. 2. I don’t know if AppStore profits (NPV of discounted future profits) make it even worth 18 billion USD. 3. If they buy out Epic, they’re signaling weakness which is basically asking the next company to play the same game. 4. It just provides more evidence & impetus for those pushing for antitrust action. There is technically a chance Apple might eventually acquire Epic, but if so, that would be driven by Apple seeking an interesting platform for its VR hardware, not to just close down this lawsuit.
Jedd 6y ago
> This reads as pre-planned ... Aka planned. > My guess is Apple will soon introduce some reduction of platform fees ... My guess is that Apple will fight this vehemently, to the highest courts they can, and try to minimise the financial damage by constraining whatever compromises they are forced to make on a per-country basis, and will continue to actively discourage this behaviour.
dschuetz 6y ago
You just don't start a fight without a plan. The legend of David and Goliath says that you need to be clever to take on an oppressive opponent that is far more powerful than yourself. Apple forgot that as it became the Goliath.
Hokusai 6y ago
> and co-ordinated to me Except the part were Epic goes to court. To involve the legal system for a stunt would be largely unwise, unethical and punishable.
- t0mas88 6y ago
  The part where they go to court is the core of the plan. They've timed it to coincide with the antitrust case. Apple will have to be very careful how they defend this case to avoid their statements coming up in the antitrust case that could cost them much much more than giving Epic a lower appstore fee.

dehrmann 6y ago

If Apple charged 5% (which is still more than a credit card processor), I doubt so many companies would be complaining.

guidedlight 6y ago
Apple still needs to pay credit card processors. Avoiding most of the 30% cut is actually rather easy for consumers, but not for developers. App Store Gift Cards can be purchased from retailers with a 15% to 20% discount (https://www.ozbargain.com.au/product/itunes-gift-card https://www.ozbargain.com.au/product/itunes-gift-card). And those retailers aren't making a loss either.
- cma 6y ago
  In many states gift card balances remain with Apple if they expire or are lost. They may make close to more money from that than the discount.
  - guidedlight 6y ago
    Apple gift cards don't expire.
    - cma 6y ago
      In some states they can earn interest on them, meaning they still effectively expire over time unless we hit deflation.
- dehrmann 6y ago
  > Apple still needs to pay credit card processors. That's why I said 5%. They don't need to run it at-cost or take a loss from it, but considering it's a closed platform, it shouldn't be a massive profit center, either,

Rapzid 6y ago

I don't believe so.. As part of Epics business strategy since the Tencent investment they have been working to reduce license and distribution costs across the industry to the benefit of a lot of developers; and themselves of course. Now Epic is worth over $18b, has some VERY big name investors, and controls the most popular game on the planet. They have the power to sway public sentiment against Apple, a legal leg to stand on as far as anti-trust, deep pockets, and powerful friends. My guess, and hope, is that Epic takes Apple to the cleaners.

coreblocks 6y ago
Apple is worth 2 trillion if we are looking at market cap. They can literally buy out epic if they wanted to.
- gpm 6y ago
  Not necessarily. Tim Sweeney owns more than half of Epic Games, and (presumably, I'm obviously not privy to what contracts he has signed) has no obligation to sell for any amount of money. He is also rich enough to have "fuck the world money" and not accept a price that is far above what his share in Epic Games is actually worth.
- the_hoser 6y ago
  Only if Tim is willing to sell it.
- ssivark 6y ago
  That would be a stupid strategy for Apple, for a multitude of reasons: 1. Fighting it out in court, and then paying damages is probably going to be cheaper than 18 billion USD. 2. I don’t know if AppStore profits (NPV of discounted future profits) make it even worth 18 billion USD. 3. If they buy out Epic, they’re signaling weakness which is basically asking the next company to play the same game. 4. It just provides more evidence & impetus for those pushing for antitrust action. There is technically a chance Apple might eventually acquire Epic, but if so, that would be driven by Apple seeking an interesting platform for its VR hardware, not to just close down this lawsuit.

Jedd 6y ago

> This reads as pre-planned ... Aka planned. > My guess is Apple will soon introduce some reduction of platform fees ... My guess is that Apple will fight this vehemently, to the highest courts they can, and try to minimise the financial damage by constraining whatever compromises they are forced to make on a per-country basis, and will continue to actively discourage this behaviour.

dschuetz 6y ago

You just don't start a fight without a plan. The legend of David and Goliath says that you need to be clever to take on an oppressive opponent that is far more powerful than yourself. Apple forgot that as it became the Goliath.

Hokusai 6y ago

> and co-ordinated to me Except the part were Epic goes to court. To involve the legal system for a stunt would be largely unwise, unethical and punishable.

t0mas88 6y ago
The part where they go to court is the core of the plan. They've timed it to coincide with the antitrust case. Apple will have to be very careful how they defend this case to avoid their statements coming up in the antitrust case that could cost them much much more than giving Epic a lower appstore fee.