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Oct 25, 2017
8,294
It's about monopolisation. Apple have such a huge market share of one of the main forms of an everyday electronic device that almost everyone owns and they have complete control over everything to do with it, to the point where any competition within the iOS software market can be snuffed out on their whim. That's just not comparable to Playstation, Xbox and Nintendo.

It will be difficult to argue that 27% market share is significant enough to trigger antitrust. Especially coming on the heels of this week's Qualcomm ruling.
 

mordecaii83

Avenger
Oct 28, 2017
6,878
Most hardware companies aren't selling for margins like Apple yet they don't seem to mandate people to only install Intel approved or Nvidia approved or AMD approved games. Imagine having to install software from a specific store because Intel refuses to run games that might work on a Ryzen.
None of those examples are companies who literally built an entire platform (software, hardware, storefront) and the userbase to go with it entirely on their own.
 

tulpa

Banned
Oct 28, 2017
3,878
It's about monopolisation. Apple have such a huge market share of one of the main forms of an everyday electronic device that almost everyone owns and they have complete control over everything to do with it, to the point where any competition within the iOS software market can be snuffed out on their whim. That's just not comparable to Playstation, Xbox and Nintendo.
iPhone has a 27% market share. PlayStation's share is much closer to monopoly levels
 

delete12345

One Winged Slayer
Member
Nov 17, 2017
19,888
Boston, MA
giphy.gif


What is happening?
2020.
 

GMM

Banned
Oct 27, 2017
5,484
Can someone very briefly explain why they're ok with console licensing fee's but not iOS?

No console have outright majority market share in the category they compete in, both in terms of TV entertainment and gaming overall, neither Xbox, PlayStation or Switch can be considered monopolys when alternatives exist like just building a home PC to play games on or get movies from something like a Roku stick, they pay the tax because they have to and don't really have a claim that the console holders stifle their means of competing in the overall market.

Phones are a little different since two companies account for the vast majority of revenue being generated worldwide, there is very little actual competition and easy to access alternatives for the end consumers, so it's easier to make the case that they are being unfairly treated by these platform holders.

Consoles are also generally sold with much tighter profit margins and sometimes even at a loss per device, phones generally sell for a profit and Google gives away Android for free with the expectation that they can monetize every user through services.
 

XR.

Member
Nov 22, 2018
6,628
Yes the incentive is to make money. You think they are gonna just gonna give up cause they make less?

Any console that allows a third-party store will, almost guaranteed, still have it's own store, and own set of services to make money.
So they're closing their company because they can't get all the money instead of some. The same company that gets people to pay full price for their first party titles at any point of the year, seemingly without competing with the other consoles?
Well sure, but they simply won't invest nearly as much into R&D and manufacturing these consoles if the margins are too low, which would mean a lesser console, a pricier console or no console at all.

It's not really about "giving up" or shutting down the company - just like any other company they'll just try to find something else with significantly better margins.
 

ika

Member
Oct 27, 2017
1,154
MAD, Spain
This. That's one of the dumbest things I've seen/heard in a minute. So Apple/Google didn't spend billions over the last 13 years getting their user base to what it is? And now they're being demanded to let Epic play for free? Gtfoh, I hope Sweeney and co get destroyed in whatever happens legally.

If they didn't like the 30%, the time to fight that was before uploading the apk/ipa, not by breaching the contract they already agreed to.
Yeah, essentially this.

Nintendo got a lot of shit in the 80-mid90s for similar things until other company came around (Sony) and offered better deals for Third Party royalties. With time, Nintendo started to make better deals to stay competitive and regain support. Now every console maker asks around the same 30%. I suspect Apple (Jobs) studied console game royalties in detail when they were creating the App Store structure, and other competitors (Android) copied that. Until other "Sony" comes around and offers better deals, nor Google nor Apple or Sony/MS/Nintendo will voluntarily lower their margins. But Epic seems that wants to force them through litigation.
 

mordecaii83

Avenger
Oct 28, 2017
6,878
No console have outright majority market share in the category they compete in, both in terms of TV entertainment and gaming overall, neither Xbox, PlayStation or Switch can be considered monopolys when alternatives exist like just building a home PC to play games on or get movies from something like a Roku stick, they pay the tax because they have to and don't really have a claim that the console holders stifle their means of competing in the overall market.

Phones are a little different since two companies account for the vast majority of revenue being generated worldwide, there is very little actual competition and easy to access alternatives for the end consumers, so it's easier to make the case that they are being unfairly treated by these platform holders.

Consoles are also generally sold with much tighter profit margins and sometimes even at a loss per device, phones generally sell for a profit and Google gives away Android for free with the expectation that they can monetize every user through services.
Genuine question, if we take into account R&D for Apple considering they literally develop their own processors and release new hardware on a yearly basis instead of every 5-7 years, is their hardware still sold for outrageous profit compared to something like consoles?
 

Deleted member 50374

alt account
Banned
Dec 4, 2018
2,482
None of those examples are companies who literally built an entire platform (software, hardware, storefront) and the userbase to go with it entirely on their own.
Oh you mean the IBM compatible platform, the same one that runs the entire planet because of the interoperability and freedom of running any software. That pesky, niche platform.

You know, the platform where many companies have duopolies or monopolies but there's always a choice and sometimes the big dogs don't even win or anything and can just watch. Where you can repair your own stuff and run and develop anything.
 

oofouchugh

Member
Oct 29, 2017
4,001
Night City
Most hardware companies aren't selling for margins like Apple yet they don't seem to mandate people to only install Intel approved or Nvidia approved or AMD approved games. Imagine having to install software from a specific store because Intel refuses to run games that might work on a Ryzen.

Look I'm not arguing that Apple locking down iOS is a good thing, just a lot of people make really disingenuous or malformed opinions about why huge businesses go to battle over their cut of the profits. Like comparing iPhones to hardware component businesses like Nvidia or AMD. They have completely different business models, the more apt comparison is iPhones vs Android (obviously) and then we just end up going down the rabbit hole of hardware profit margins wrapped up in a tightly controlled software ecosystem vs a more open ecosystem that harvests user data at every turn for an ad company.

iPhones simply have a lot of valuable customers to software companies, like Epic, and those companies just want to control as much of payout as possible. Profit margins attached to hardware sales isn't going to change that.A lot of Android phones sell on thin margins and they pulled the exact same stunt on the Play Store.
 

RiOrius

Member
Oct 27, 2017
6,088
The lack of ability to use third party payment service is the issue in an effective market duopoly. You have to pay 30% cut for payments in the mobile os space (this isn't just about games its about mobile application payment processing). Large swathes of how this case is settled will be how the courts deem a duopoly. Is that competitive enough?
Android phones allow sideloaded apps, which means there are alternative markets available. Not sure if they're still around, but I know Amazon had one at one point, and there was one for porn games that Google didn't want one on their store. So competition exists in the mobile space, just not on iOS.
 

GMM

Banned
Oct 27, 2017
5,484
Genuine question, if we take into account R&D for Apple considering they literally develop their own processors and release new hardware on a yearly basis instead of every 5-7 years, is their hardware still sold for outrageous profit compared to something like consoles?

Its a good question, but generally they tend to sell for quite a higher price than their raw material price estimates and even higher than very similar competing products that needs to source similar components from third party vendors like Qualcomm, it would be surprising if hardware profits would be lower than the manufacturing R&D at this point, I'm sure there is a great article to be made around this subject alone.
 

Lobster Roll

signature-less, now and forever™
Member
Sep 24, 2019
34,582
I'm mostly baffled by people seemingly being more interested in the reputation and "human characteristics" of corporations than actual advantages for real people.
Have you discussed businesses or corporations ever in your life? Reputation and goodwill are very real aspects of business, and we are witnessing Epic showing their entire ass and we're discussing that.
 

mordecaii83

Avenger
Oct 28, 2017
6,878
Its a good question, but generally they tend to sell for quite a higher price than their raw material price estimates and even higher than very similar competing products that needs to source similar components from third party vendors like Qualcomm, it would be surprising if hardware profits would be lower than the manufacturing R&D at this point, I'm sure there is a great article to be made around this subject alone.
Yeah, I'm genuinely curious since Apple is, as far as I know, the only company that basically designs most of the hardware for their platform. I'd be willing to bet their R&D costs are much higher than any of the other phone manufacturers or the console makers.

So basically my point is, I'd love to see a more comprehensive breakdown of their expenses and margins before saying they charge an outrageous amount compared to other companies for their hardware.
 

Cyclonesweep

Banned
Oct 29, 2017
7,690
So at the end of the day it seems Apple is bad here and console companies are fine because devs see the console 30% share as fair because of what they provide and they see Apples 30% far to large for what they provide.
 

XR.

Member
Nov 22, 2018
6,628
Legit question here since I'm not familiar with the Epic Store. Do they allow devs who are using Epic's infrastructure to distribute their game to bypass Epic when selling in game currency or DLC even on exclusives?

Seems kind of hypocritical if they don't.
If what I am understanding is correct, games sold on EGS, they do offer direct payment to developers to where 100% of it would go to said developer.
It's worth noting that they currently have no ability to authorize any in-app purchases since they have no interface (or overlay) for this as of yet.

So I'm not sure if this is attributed to a policy of theirs or the fact that they can't. Traditional DLCs are sold with the standard cut via the client/store page.
 
Oct 25, 2017
8,294
Oh you mean the IBM compatible platform, the same one that runs the entire planet because of the interoperability and freedom of running any software. That pesky, niche platform.

You know, the platform where many companies have duopolies or monopolies but there's always a choice and sometimes the big dogs don't even win or anything and can just watch. Where you can repair your own stuff and run and develop anything.

Yeah, the platform that was built on Wintel dominance.
 

thisismadness

Member
Oct 25, 2017
4,485
So at the end of the day it seems Apple is bad here and console companies are fine because devs see the console 30% share as fair because of what they provide and they see Apples 30% far to large for what they provide.

No, its because this is a videogame forum and some of us can't ever admit our favorite console company is also wrong.
 

GMM

Banned
Oct 27, 2017
5,484
Yeah, I'm genuinely curious since Apple is, as far as I know, the only company that basically designs most of the hardware for their platform. I'd be willing to bet their R&D costs are much higher than any of the other phone manufacturers or the console makers.

Along with reusing their chip designs for everything, the iPhone 12 SoC is likely powering iPhones, iPads, Apple TV's and even MacBooks this year, the amount of money saved from outsourcing components probably massively outweighs the R&D costs at this point.
 

Hugare

Banned
Aug 31, 2018
1,853
Cringy as hell

I hope that they both loose somehow

I would side with Epic here if they werent using such ridiculous tactics

Borderline childish
 

ScubaSteve693

Banned
Mar 26, 2020
680
It's worth noting that they currently have no ability to authorize any in-app purchases since they have no interface (or overlay) for this as of yet.

So I'm not sure if this is attributed to a policy of theirs or the fact that they can't.
Either way, give praise where praise is due until they go back on that and make it anti-consumer.

Have you discussed businesses or corporations ever in your life? Reputation and goodwill are very real aspects of business, and we are witnessing Epic showing their entire ass and we're discussing that.
I mean, if Epic has to show their ass in order for Apple to provide better benefits to developers wanting to use their platform, fuck it. Show your ass and show how Apple is being shitty at the same time.
 

Deleted member 50374

alt account
Banned
Dec 4, 2018
2,482
I'm really not sure what your point is? That's a completely different business model than something like a console or phone.
My point is: the day the monopoly died (IBM) is the day the world slowly knew the world wide web, personal computing, programming became democratic and so did knowledge through search engines.

But yeah, let's give new generations walled gardens where a big bunch of profit goes to one corporation and that can pick and choose which competitor can be on it, just like Apple does with xCloud. Or you impose your own services killing competitors on day one (Play Services) and can make company close down because of it (Huawei being basically removed from the western market because Trump).

That is all well and everything because fuck Epic amirite.

Yeah, the platform that was built on Wintel dominance.

Plenty of choices to run something else and no actual control of it. As the success of Ryzen and the flop of Windows Store, Windows ARM, Windows S, Windows X, have shown. The world runs on GNU/Linux, you know. Microsoft only got away with IE until they didn't, basically.
 
Last edited:

Mindwipe

Member
Oct 25, 2017
5,272
London
So why not also sue the google play store?

In most territories a majority of Android phones are Samsung's, and include Samsung's app store. Samsung's app store will install the Epic Games Launcher and gives them everything they want.

It's much harder to demonstrate the harm when there's significantly less effect.
 

Puroresu_kid

Banned
Oct 28, 2017
9,477
Am I right in saying on android people just downloading the apk file from elsewhere still get the updates and can purchase v bucks no problem.
 

THRILLHO

Member
Nov 6, 2017
1,103
If I had a public twitter account, I'd ask Sweeney if I could make dances and emotes and sell them in fortnite without giving Epic a cut.

Apple's App Store = Epic's Fornite market, in effect
 

XR.

Member
Nov 22, 2018
6,628
Either way, give praise where praise is due until they go back on that and make it anti-consumer.
Praise for what do you mean? The consumer isn't really factored in here since it's the same end result for them either way; they're just using the interface provided by the publisher instead of the distributor's.
 

dakun

Member
Oct 28, 2017
4,638
Sony, Microsoft and Nintendo will be looking very closely at this case.

I imagine Epic pulled this off with Apple so they wouldn't have a major gaming company on their bad side and being more in the spotlight (as is anything with Apple involved). But their ultimate goal will be to enforce any change that might come out of this towards the big three.
 

ScubaSteve693

Banned
Mar 26, 2020
680
Praise for what exactly? The the consumer isn't really factored in here since It's the same end result for them; they're just using the interface provided by the publisher instead of the distributor's.
The praise being that they are not taking a cut from the in app purchases for games played on EGS. If they were taking a cut from those in app purchases, this entire debate on whether EGS is in the right or not would be null and void as they would be doing the exact same thing Apple is doing. Them allowing people to pay the developer directly instead of taking a cut themselves on those purchases is a good thing.
 

Abylim

Corrupted by Vengeance
Member
Oct 29, 2017
5,037
If they can establish a lesser apple cut for everyone, this is cool. But its most likely just going to end up in nothing, or a lesser cut for only epic.

if that in turn ends up in a permanent 20% off all V bucks, that's cool for consumers. But right now it just seems like big Corp vs big corp, and they both want more money
 

Sota4077

Attempted to circumvent ban with alt account.
Banned
Oct 28, 2017
742
This is a serious question and I am not being snarky. Do you also apply this to Sony, Nintendo and MS for their closed platforms and %cut of sales on consoles? If not, why?

Except Sony and Microsoft both allow games to have sales within their games while taking a small cut. Apple and Google are just locking down the entire platform from even competing. There is a massive difference.
 

EloKa

GSP
Verified
Oct 25, 2017
1,909
That's what I thought. So in theory Epic could actually host the apk file themselves and direct android users to the Web page to download it.
They did that for the longest time and even tried to run their own app store without putting much effort into it but people preferred to use the Play Store instead.
 

GMM

Banned
Oct 27, 2017
5,484
That's what I thought. So in theory Epic could actually host the apk file themselves and direct android users to the Web page to download it.

That should work, but as a user you also have to tell Android to trust third party executables coming from outside the Play Store and I believe you also manually need to download an updated apk if the core executable needs to be updated.