Microsoft Says Apple's 30% Fee Makes Xbox Cloud Gaming iOS App 'Impossible'

Apple has allowed cloud gaming apps on the App Store since earlier this year, but cloud gaming services still haven't bothered making iOS apps. Microsoft recently explained why, telling UK regulators that it didn't bring Xbox Cloud Gaming to Apple's ‌App Store‌ because the rules are still too restrictive.

App Store and XCloud
The UK's Competition and Markets Authority is investigating mobile browsers and cloud gaming, and put out a call for comments. Microsoft responded in late July (via The Verge) and said [PDF] that while cloud gaming apps are technically allowed, there are still multiple rules that cloud gaming apps can't comply with for "technical and economic reasons."

Microsoft's chief complaint is that the ‌App Store‌ rules require subscriptions and features to be made available on iOS devices with in-app purchase, which is "not feasible." A consumption-only situation where content is purchased on another platform and played on iOS is not allowed for cloud gaming apps.

Apple's 30 percent commission fee "makes it impossible" for Microsoft to monetize its cloud gaming service, and it is neither "economically sustainable nor justifiable."

Microsoft also complains about Apple's lack of support for alternative app stores and the limitations of web apps, such as an inability to access device hardware features.

Google also submitted a separate document in the UK, and it simply suggests that regulators focus on the iOS ‌App Store‌ rather than taking a look at Google Play.

Apple's own statement said that it "supports and encourages" cloud gaming services on iOS, and that there are successful cloud gaming services such as Antstream. Apple suggested that regulators revisit their thinking following its support for cloud gaming, which did happen after the investigation launched.

The UK will take Microsoft's comments and comments from other parties into account when making a decision in the ongoing mobile browser and cloud gaming investigation.

Popular Stories

Generic iOS 18

Apple Announces iOS 18.2 Launching Today With These New Features

Wednesday December 11, 2024 5:23 am PST by
Apple has announced that iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2 will be released today following more than six weeks of beta testing. For the iPhone 15 Pro and iPhone 16 models, the update introduces additional Apple Intelligence features, including Genmoji for creating custom emoji, Image Playground and Image Wand for generating images, and ChatGPT integration for Siri. There is also ...
Generic iOS 18

Apple Seeds Second Release Candidate Versions of iOS 18.2 and More With Genmoji, Image Playground and ChatGPT Integration

Monday December 9, 2024 10:06 am PST by
Apple today seeded the second release candidate versions of upcoming iOS 18.2, iPadOS 18.2, and macOS 15.2 updates to developers and public beta testers for testing purposes, a week after releasing the first RCs. The first iOS 18.2 RC had a build number of 22C150, while the second RC's build number is 22C151. Release candidates represent the final version of beta software that's expected to see a ...
iPhone SE 4 Single Camera Thumb 3

iPhone SE 4 Said to Feature 48MP Rear Lens, 12MP TrueDepth Camera

Monday December 9, 2024 4:48 am PST by
Apple's forthcoming iPhone SE 4 will feature a single 48-megapixel rear camera and a 12-megapixel TrueDepth camera on the front, according to details revealed in a new Korean supply chain report. ET News reports that Korea-based LG Innotek is the main supplier of the front and rear camera modules for the more budget-friendly ~$400 device, which is expected to launch in the first quarter of...
iOS 18

Here Are Apple's Full Release Notes for iOS 18.2

Thursday December 5, 2024 11:48 am PST by
Apple seeded the release candidate version of iOS 18.2 today, which means it's going to see a public launch imminently. Release candidates represent the final version of new software that will be provided to the public should no last minute bugs be found, and Apple includes release notes with the RC launch. The iOS 18.2 release notes provide a look at all of the new features that are coming...
New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Friday December 6, 2024 4:42 am PST by
Apple is set to release iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls...
Apple MacBook Pro M4 hero

MacBook Pros With OLED Displays Won't Have a Notch, Roadmap Shows

Monday December 9, 2024 7:36 am PST by
Apple plans to remove the notch from the MacBook Pro in a few years from now, according to a roadmap shared by research firm Omdia. The roadmap shows that 14-inch and 16-inch MacBook Pro models released in 2026 will have a hole-punch camera at the top of the display, instead of a notch. It is unclear if there would simply be a pinhole in the display, or if Apple would expand the iPhone's...
airpods pro 2 gradient

AirPods Pro 3 Expected Next Year: Here's What We Know

Thursday November 28, 2024 3:30 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
vipps nfc tap to pay iphone

World's First Apple Pay Alternative for iPhone Launches in Norway

Monday December 9, 2024 1:28 am PST by
Norwegian payment service Vipps has become the world's first company to launch a competing tap-to-pay solution to Apple Pay on iPhone, following Apple's agreement with European regulators to open up its NFC technology to third parties. Starting December 9, Vipps users in Norway can make contactless payments in stores using their iPhones. The service initially supports customers of SpareBank...

Top Rated Comments

Jason2000 Avatar
14 weeks ago

Apple's rent seeking behavior has to stop.
Apple has become so greedy. Its beginning to turn me off.
Score: 49 Votes (Like | Disagree)
JCCL Avatar
14 weeks ago

Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Hardly the same as a landlord. They are gatekeeping devices that the customers have fully paid for. We should be able to decide where we want to install software from. You don't want it, fine, I don't really care how you use your device, and you shouldn't care about what I want to do with mine either.
Score: 46 Votes (Like | Disagree)
brofkand Avatar
14 weeks ago
Apple's rent seeking behavior has to stop.
Score: 39 Votes (Like | Disagree)
Joe The Dragon Avatar
14 weeks ago

Apple's rent seeking behavior has to stop.
30% when they not hosting or providing the games is way over the top.
Score: 39 Votes (Like | Disagree)
WarmWinterHat Avatar
14 weeks ago

Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Im a landlord, and this is nonsense. Your landlord owns the home you're living in. Apple doesn't own my iPhone.

I don't charge the current people who bought the house I built and sold back in 2014.
Score: 32 Votes (Like | Disagree)
acgmph Avatar
14 weeks ago
[HEADING=1]Revenue Share[/HEADING]
Microsoft takes a 30% cut of game sales and in-app purchases for most developers publishing on Xbox. This means developers keep 70% of the revenue their games generate on the platform.
[HEADING=1]Fee Reduction for Some Developers[/HEADING]
In 2021, Microsoft announced they would reduce their cut to 12% for PC games sold through the Microsoft Store. However, this reduced rate does not apply to Xbox console games.
[HEADING=1]Free-to-Play Games[/HEADING]
Microsoft does take a cut of in-game purchases made through its platforms. Specifically, for games sold on the Microsoft Store, the company takes a 12% cut of the revenue from in-game purchases, which is a reduction from the previous 30% cut that was standard across many platforms. This fee structure aligns Microsoft more closely with the Epic Games Store, which also charges a 12% fee, and is part of a broader strategy to remain competitive in the gaming market, particularly against rivals like Apple and Valve.However, it's important to note that this 12% cut applies specifically to games. For non-game apps, developers can retain 100% of their revenue from in-app purchases unless the app is categorized as a game, indicating a clear distinction in how Microsoft handles revenue sharing between games and other types of applications.
[HEADING=1]Additional Costs[/HEADING]
Besides the revenue share, developers may incur other costs when publishing on Xbox:

* Development kit fees
* Certification and testing fees
* Marketing and promotion costs

[HEADING=1]Comparison to Other Platforms[/HEADING]
Microsoft's 30% cut for Xbox games is in line with industry standards. Other major platforms like PlayStation and Nintendo also typically take a 30% share of game sales revenue.While Microsoft has reduced its fee for PC games, the standard 30% rate remains in place for Xbox console games as of 2024. Developers should factor this revenue split into their financial planning when bringing games to the Xbox platform.
Score: 26 Votes (Like | Disagree)