Epic vs Apple trial will solely have an effect on 17% of iOS video games
The ruling from the continuing antitrust trial between Epic Video games and Apple might solely impression lower than a fifth of all video games on the App Retailer.
Throughout his testimony yesterday, Apple Fellow and former senior vice chairman of worldwide advertising Phil Schiller provided a breakdown of the enterprise fashions utilized by the lots of of 1000’s of video games obtainable on the iOS market.
In line with Bloomberg, Schiller stated that simply 17% of those apps come beneath the identical freemium mannequin that Fortnite makes use of — i.e. a free obtain with the choice to make in-game purchases.
Solely 6% are premium titles, requiring an upfront cost, whereas 75% of all video games are fully free.
One of many arguments on the centre of the dispute between Epic and Apple is whether or not the latter is justified in taking 30% on all transactions — one thing Epic tried to keep away from with a hotfix to Fortnite on iOS that enabled gamers to make funds on to the developer.
The trial might doubtlessly see new rulings made as to how a lot Apple is allowed to cost recreation creators for dealing with cost processing for freemium video games and premium ones, each when it comes to the preliminary sale and the microtransactions.
It is price noting that whereas the 17% represents lower than one fifth of the App Retailer’s video games — and even for those who issue within the premium titles (6%), it quantities to lower than 1 / 4 — that is by far probably the most profitable section of the video games market on iOS.
It is also price noting Schiller’s feedback seem to refer particularly to video games, relatively than all different apps. Stepping other than Apple’s odd definition of what’s and is not a recreation, this doubtless means any ruling concerning the iPhone maker’s fee payment would have far broader implications throughout all app classes.
Earlier within the trial, Epic CEO Tim Sweeney admitted he personally didn’t perceive the total penalties this case might have on the general app market. Choose Gonzales Rogers has additionally warned it might have “critical ramifications” for Nintendo, Sony and Microsoft, which function related “walled backyard” ecosystems on their respective consoles.
Elsewhere in Schiller’s testimony, the previous Apple exec mentioned the Small Enterprise Program launched final yr, which halved the fee to fifteen% for builders who generate lower than $1 million in income per calendar yr.
In line with Schiller, 90% of builders with apps on iOS qualify for this system, however solely tens of 1000’s have joined.
Schiller was Apple’s first witness because the trial shifted away from Epic’s argument to the iPhone maker’s protection. The trial is predicted to conclude early subsequent week.
You’ll be able to comply with all of our Epic vs Apple protection right here, or learn the highlights in our ongoing roundup.