Comment by galkk
12 hours ago
I just don’t understand - where the 30% take away by store number is coming from and why giants are fighting tooth and nail to keep it.
Obviously I don’t know economics and costs behind it, but from very uninformed point of view it feels that even 10% would still give quite a profit to stores, even after processor fees.
IIRC Epic Games internally calculated that for their store the break-even point was around 9%. (They mostly run it as a loss leader at a default 12%, but with tons of giveaways and deals, so that percent can go as low as 0%.) So I think somewhere around 15-18% might feel “fair” to me, trying to take into account the value of the platform.
Why wonder whats fair when we could let the market decide?
E-feudalism isn't capitalism.
The gatekeepers are governments without democratic representation. Wondering what fair exploitation looks like is choosing a warped perspective.
That is exactly what happens if they can enforce payments: "you don't get to be on our store if you're bypassing this"
But it isn't what is happening if they are staying on the platform's marketplaces and also bypassing payments. There is no "market" effect there.
Not saying I agree with the 30%, but third party app stores exist. That is the market avenue (and no one uses them).
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Retail stores have always charged 30-40% so that's where the number comes from. You can see the exact breakdown in Europe: it's x% for payment processing, y% for app review/downloads/updates, and z% for recommendations etc. They're fighting to hold on to it because it's billions of dollars of profit. Obviously the app stores do not need or deserve 30% but that argument could apply to any profitable company.
30% has been the video games cut going as far back as the NES. Mobile app stores adopted that standard figure.
because the app store needs to build hardware cartridges....
> even 10% would still give quite a profit to stores
In other words, 30% would give quite a profit to stores, plus 20%. That's why giants are fighting tooth and nail to keep it.
30% on the App Store was an answer to Nokia’s Ovi store some 70%!
Damn that's absolutely ridiculous. It makes me feel less bad for Nokia CEO's burning platform speech.
The fact you're thinking 10% is good enough is why you're not part of the cohort which is driven to be 100+ billionaires, more powerful than states, people
If more people would just be insanely greedy they would probably be billionaires too!
Many people are insanely greedy. Becoming a billionaire is exceedingly difficult. It’s not a matter of others simply not wanting it enough.
Maybe we should be identifying those types of people and preventing them from ever controlling anything?
I mean, if we ever want society to improve at all
Maybe we need to limit them a bit more, but there's an evolutionary factor or purpose or something at play. I remember a psychology lecture where they talked about it and how in hunter and gather societies most people would be content for a while when they found a good gathering area, they would hang out and gather the food and eat. But they had certain people that didn't want to stay they just wanted to move on to find the next better gathering area and would practically be forced to eat and carry enough food before they could keep searching. Those people were important too, and I feel that's the psychology of billionaires today. There is never enough they don't even actually care about the bounty it's just the idea of getting more and more.
I also remember an experiment found that something like 8% of people swerve over to purposely hit turtles on the shoulder of the road. I would be much more interested in identifying and containing those people.
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doesn't sound like freedom to me
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they probably regret not making it higher, they're making mountains of money
It's an ungodly corrupting amount of money.
The market owner sets the rates. If you are not happy, good luck creating your own market with your huge user base.