Microsoft Slams Apple’s 30% Fee, Calls it a Barrier for Xbox Cloud Gaming on iOS

Microsoft has shed light on why its Xbox Cloud Gaming service remains absent from iOS despite Apple’s recent allowance for cloud gaming apps on the App Store.

Xbox Game Pass

The Xbox maker recently expressed its concerns to the UK’s Competition and Markets Authority (CMA), stating that Apple’s stringent rules make it nearly impossible to offer Xbox Cloud Gaming on iOS (via MacRumors).

The CMA is currently investigating mobile browsers and cloud gaming services, seeking input from industry players. In late July, Microsoft responded to this inquiry, highlighting that while Apple technically permits cloud gaming apps, the existing regulations impose significant challenges that are difficult to overcome.

One of Microsoft’s primary grievances revolves around Apple’s App Store policies, which mandate that all subscriptions and features available on iOS devices must be offered through in-app purchases.

Microsoft argues that this requirement is not feasible for cloud gaming services. Unlike other types of content, cloud gaming requires a consumption model where users can purchase content on other platforms and then play it on iOS devices. However, Apple’s rules currently prohibit such an arrangement.

The tech company also points out that Apple’s 30% commission fee on in-app purchases makes it “impossible” to monetize Xbox Cloud Gaming on iOS. Microsoft claims that this fee structure is neither economically sustainable nor justifiable for its cloud gaming service.

Apple’s high commission, coupled with the need to use its in-app purchase system, places significant financial strain on cloud gaming providers, leading Microsoft to forgo bringing its service to iOS.

Amazon Fire TV Stick Xbox

In contrast to Microsoft’s stance, Apple has defended its policies, asserting that it “supports and encourages” cloud gaming services on its platform. Apple pointed to successful cloud gaming services like Antstream as examples of its support.

Apple suggested that regulators should revisit their concerns in light of the fact that it has allowed cloud gaming apps on the App Store following the launch of the investigation.

Google also contributed to the CMA’s inquiry, albeit with a different approach. In its submission, Google urged regulators to focus more on Apple’s App Store rather than examining the Google Play Store, subtly shifting attention towards Apple’s practices.

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It's Me
It's Me
1 year ago

Funny, MS used to charge 30% in their store too, but no one was buying.

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