Battle of the Tims 🕹️⚔️🍏
After Microsoft and Facebook, Epic Games joined the fight against Apple🍎 and we're definitely-maybe getting a low-end Xbox console this holiday season🎁
Sour Apples
After talking last week about Microsoft’s xCloud being banned from the AppStore and the future of digital front stores in general, it’s impossible not to start this week’s edition with the Fortnite debacle unfolding last week. I said this newsletter would be insightful, never said anything about it being non-predictable :)
What started it all. In the middle of last week, Epic Games pushed an update to its mobile version of Fortnite that allowed players to circumvent the AppStore’s 30% tax when buying in-game items and pay Epic directly, cutting out the middle man. As a result, on Thursday, Apple —followed by Google a few hours later— removed the game from their store. A few hours after that, Epic Games filed a very coherent, very lengthy lawsuit against Apple and Google in a California court, citing anti-trust legislation when it comes to the monopolistic power given by the combination of the AppStore distribution model and Apple’s in-app payment system.
The speed at which this motion against Apple was filed, the somewhat witty comeback, and the fact that the Epic is requesting zero financial compensation in the case of prevailing make it easy to see that the company in Cupertino was baited into a trap. Furthermore, by offering players the opportunity to pay less for the same item if they circumvent Apple’s payment system, Epic put all the responsibility of user outrage in case the app was banned on Apple. Smart stuff…
A look from the three different perspectives might help. On one side, Epic doesn’t want to pay 30% of everything its player pay it to Apple, and I use the ‘doesn’t want to’ intentionally, it’s not like they couldn’t afford it. On the other side, Apple wants a secure payment system, one they think can only be built by themselves, and they want a distribution fee since they an audience of 1+ billion. Finally, when it comes to consumers we’re split between those valuing the convenience of a reliable, unique payment service we can trust with our credit card details whilst others put price at the forefront of their decision making. I get developers being upset about being locked against their will in the Apple maze, but on the other side, very few would want to share their credit card details with a thousand different APP developers.
Unlike all the noise out there saying that Apple’s 30% tax is too much —I don’t know what piece of legislation these people are thinking of, to be honest, last time I checked you can set your own prices as a distributor— Epic’s lawsuit is smartly targeting not a subjective number, but the unbreakable bond between the distribution network and the payment system and the fact that one forces developers to use the other. It looks like between the protests of Facebook, Microsoft, and Epic Games, these companies are trying to do what the government proved incapable of just a few weeks ago: keep Apple responsible.
Considering that Apple already gives companies like Starbucks or subscription-based Amazon Prime Video, better deals on the tax they take, this uprising was always going to happen from the moment they made that decision. It’s very un-Apple-like for the company to keep its ground when considering that both consumers and developers want to move in a different direction. Usually, they’re pretty good at observing and reacting to new trends in the market, that’s what brought them the cult-like following around the world.
This is a very navy move by an outfit pretending to be pirates, relying on the idea that everyone else has to fall in line if they want distribution. But one can’t help but wonder what would happen if Epic, Facebook, Netflix, Microsoft, and more, made a cartel boycotting the AppStore in unison? Would you buy a smartphone that won’t have Netflix or Spotify on it? That would test the loyalty of Apple fans to the extreme, that’s for sure.
The packaging for the Xbox Series X’s controller is out and about in the world and it appears to be mentioning a ‘Series S’ model will indeed be coming out.
A lot of speculation circulated the media over the past year about a cheaper model that would leverage xCloud, Microsoft’s game streaming service, but now we can consider it half-way confirmed, despite the company commenting they have nothing to comment on the news.
With the first version of the controller mentioning both consoles, it’s easy to deduce that Xbox will launch both models either at the same time or in very close proximity to each other come the holiday season. It’s no surprise that Microsoft is pushing the streaming agenda further and intends to throw this battle in order to win a future war, but now we have solid confirmation. Project ‘Lockhart’ has become the Xbox Series S.
More of my thoughts about Microsoft’s strategy for this generation of the console war and preparation for the streaming war in previous editions of the newsletter
The already shallow pool of exclusive launch titles for the upcoming Xbox Series X/S is getting even more shallow, with Halo Infinite, a game many mentioned as a console seller, confirmed to be delayed to next year. Not great news, to be sure, but Microsoft already plans to bet the farm on services and, as a result, it’s easy to assume they expect console sales to be lower this time around compared to previous years🎮📉
If you live in the US, you can order Microsoft’s dual-screen Android device today for $1400 and you’ll receive it on September 10th. While the novelty of the form factor will intrigue at first, a lack of practicality will surely pull potential consumers away from the Duo, and it doesn’t help that some other manufacturers are already releasing second-generation smartphones with foldable displays that appear more sturdy than the first iterations. With the adoption of Android providing a healthy ecosystem of APPs for the device, the determining factor in a purchase decision will be whether the device will provide extra functionality instead of being just two screens bolted together📱📱
I touched on the possibility of Apple bundling various products and services together a bit over a year ago in the ‘Apple Beyond the iPhone’ article and it looks like they’re finally doing them. Music, TV+, News, and Arcade in various combos for cheaper? Sign me up! Let’s see if they’ll have a ‘Make your own bundle’ option or whether they’ll go the boring route with predetermined packages📦
If you’ve ever taken an at-home DNA test by way of Ancestry.com, this is the time to go back and review that small print inside the privacy policy. Last week Blackstone, the illustrious private equity firm, announced they were acquiring the company for $4.7B. While both companies stated that consumer data will not be shared with investing parties now or in the future, there are still no specific protections for DNA data as of yet, so if push ever comes to shove and the company is in a corner, I wouldn’t bet this consumer data will remain private for too long🧬💰
Busy week for Jeff and his boutique shipping company. He started things off by creating a new company focused on climate change strategy in order to keep his previously-announced pledge of $10B, then he announced Amazon Prime Video will be donating $6M towards European arts recovering from COVID, and finally, the company included gaming its Prime subscription, offering perks and free games for subscribers in the new Prime Gaming service. The strategy of ‘two for society, one for the bottom line’ is a smart one, to say the least, other big tech companies should take note here🕊️
With the number of big-budget theatrical projects increasing at Netflix, the company got Hans Zimmer to create a new intro sequence for such occasions. Spoiler alert, it’s good
Wondering how much the Hamiltion deal was worth for Diseny+? $75 million, and a big chunk of that went to its writer and creator…
If you think ‘reverse waterfall’ would refer to a sex thing, think again…
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