Comment by kmeisthax
5 days ago
> But someone has to pay for the costs of developing the SDKs and the platform.
The business model Apple has used since the Macintosh is that the hardware subsidizes the software. I paid for the platform when I bought the device. The only reason why there's even a "free rider problem" is that Apple believes itself entitled to a 30% cut of half of mobile, forever.
Furthermore, we've known since the failure of OS/2 (at least) that expensive development tools almost guarantee zero software uptake. The platforms that win are the ones where the developer tools are affordable or free. In other words, it is not the third party developer's job to pay for the platforms they rely upon. It is the platform's job to pay (in a roundabout way) for the third-party software.
In fact, that's why Apple even has a reader app exception. They know Netflix doesn't have 30% to give and they know nobody's going to buy an iPhone that won't play Netflix.
The reality of Apple's business model is that they absolutely could give away the platform, make money off the phones and the OS, and remain profitable. But investors don't invest into profitable companies. They invest into growing companies. Tim Cook has to treat developers' bank accounts as his own because that's the only thing that makes Apple stock valuable.
> Apple believes itself entitled to a 30% cut of half of mobile, forever.
1. This isn't the number. Worst case, the after first year number is half that, and even less for most.
2. App store platforms on ostensibly "open" PC such as Steam cost game developers more. Why?
Nothing "ostensible" about PC being an open platform.
Any PC will run any number of game stores. Steam is large despite not being the one owned by the platform maker and installed by default (Microsoft Store and the XBox app).
Steam does not prevent publishers from selling in other stores too, nor does it enforce pricing outside its store. (E.g. there are games that are cheaper on other stores, citing Steams larger cut as the reason)
It also allows publishers to force users to install the publishers store to play games sold on Steam. (See e.g. Ubisofts launcher, being required to install games and selling you additional subscriptions without a cut to Steam)
To a limited degree Steam even lets publishers use Steam infrastructure for sales outside Steam, for free. (Publishers can sell Steam keys for free on other platforms, but the number is limited and here pricing has to roughly match Steam pricing)
Even on Steam Deck, the only PC hardware where Steam is actually the preinstalled default store, running games from other stores is supported and the main inconvenience to it is that most stores don't have a supported version for it and you need to use third-party workarounds.
Being an open platform doesn't ensure a market doesn't have other weirdness going on (in this case, there being a strong consumer preference towards Steam, certainly in part due to Steams existing large position, but not only), but its a different thing and most of the usual competition law approaches don't apply. Steam is popular because Steam is popular, not because Steam is using its strong position in another business to push its app store business.
The best case is 15% for subscription apps after the first year of service, or if you're a "small business" developer under a certain sales threshold. The latter goes away after you reach a certain size, after which you pay 30%; the former requires you to adopt a subscription business model.
I still think calling it a "30% cut" is accurate, even though there are discounts now. 30% is the base rate. You mentioned Steam, which also has discounts too, except they're the opposite ones of Apple. The cut starts at 30% and goes down the more sales you make. This "costs game developers more" only in the sense that it would be incredibly difficult to qualify for both Apple and Steam discounts at the same time. But the base rate is the same.