Epic Games to Charge 12% Fee for App Sales From Alternative iPhone Store

[MacCheetah3]

Because even if I pay the same price the dev will get a little more, and I prefer devs getting the money rather than a huge Company ( no matter which ).

Because I would support Epic for trying to change things ( yes I know they did for their own good, but devs get a little in return as well ).

Are we talking about the actual devs (i.e., software engineers/programmers)? Because I doubt the devs will gain much, if anything. Most of any profit increase goes into the pockets and investment accounts of executives. And I decided to look up some figures:

Average Epic Games Director yearly pay in the United States is approximately $269,000, which is 166% above the national average.

https://www.indeed.com/cmp/Epic-Games/salaries/Director#:~:text=Average%20Epic%20Games%20Director%20yearly,166%25%20above%20the%20national%20average.

Average Epic Games Software Engineer yearly pay in the United States is approximately $109,593, which meets the national average.

https://www.indeed.com/cmp/Epic-Games/salaries/Software-Engineer#:~:text=Average%20Epic%20Games%20Software%20Engineer,which%20meets%20the%20national%20average.

 

[mrochester]

Thankfully, competition can settle that question.

It already has.

 

[Ctrlos]

I’m waiting for the EU to fine Apple every penny of their CTF and then distribute it back to developers. Apples €100 annual fee for a dev account should be enough for API maintenance; their normal 15% commission is based on the convenience of the App Store and not just the privilege of developing for the iPhone. It’s not like they have these charges for Mac devs.

 

[AdonisSMU]

You'll have to elaborate on how Epic are being hypocritical because from what I'm seeing

(1) the 12% fee is less than the 15% or 30% fee Apple charges;

(2) they're allowing app developers to use their own payment processing method, something Apple doesn't allow ("there are no fees for apps that offer in-game purchases and use their own payment processing method.");

(3) they're not blocking app developers from advertising alternative payment methods, something Apple doesn't allow

Umm the developer also ends up paying 50 cents per download. That means every update becomes an expensive proposition.

 

[AppliedMicro]

If a company develops successful platform it’s entitled to charge a fee from those using it

It does. They charge a $99 developer fee - as evidenced by the many free apps that don't pay anything more.

Apple is entitled to get a cut for bringing a new user to the developer.

Agree - they should be entitled to charge a fee for the download of that app. Up to the point that the app was delivered to me.

But if I subscribe to Spotify within Spotify's app - that Spotify designed and created - it's between me and Spotify (or Epic, or whomever).

👉 Once I've bought and downloaded an app, it's between me and that app's developer. Very easy.

 

[Lukelyke765]

You'll have to elaborate on how Epic are being hypocritical because from what I'm seeing

(1) the 12% fee is less than the 15% or 30% fee Apple charges;

(2) they're allowing app developers to use their own payment processing method, something Apple doesn't allow ("there are no fees for apps that offer in-game purchases and use their own payment processing method.");

(3) they're not blocking app developers from advertising alternative payment methods, something Apple doesn't allow

 

[AlexESP]

Before Apple fans get confused again and start calling Epic hypocritical: the key difference is that Epic is not a gatekeeper and does not have complete control over game distribution. If developers don't like these terms they're free to use web distribution or alternative stores. That's how competition in a free and open market works.

Apple doesn’t have complete control over game distribution. It has complete control over game distribution *in iOS*. Epic has complete control over game distribution *in the Epic Store*. Sorry, but this is the problem, people set the arbitrary line where they want.

 

[AppliedMicro]

It already has.

It hasn't - since there was no competition between App Stores once a user bought a phone.

The purchase of a smartphone "locks in" a customer to that operating system - and in the case of Apple their App Store. (Although the application stores available are - usually - only very minor purchase criteria).

Switching between phones doesn't work the same way as switching from Walmart to Target.

 

[apparatchik]

Before Apple fans get confused again and start calling Epic hypocritical: the key difference is that Epic is not a gatekeeper and does not have complete control over game distribution. If developers don't like these terms they're free to use web distribution or alternative stores. That's how competition in a free and open market works.

Because Epic doesn't make a device, I wonder why Epic doesn't protest the terms of Sony, Nintendo and Microsoft and their respectively exclusive digital storefronts on their devices.

 

[vladi]

Is it about being a hypocrite or about a business just making profit every which way they can? Epic only cares about making money, and I am not judging them for that. But Apple is no more a "gatekeeper" than Microsoft or Sony are with their consoles. Any business can choose who they do business with and on what terms. If the other party doesn't like those terms they don't have to say yes. App developers with coding skills can code for any platform they wish. If they want to largest reach and to get the help of the businesses who can instantly reach millions....there is a price to pay. It is "just business" and Epic is now playing their part in trying to make money off of people who want to use them for a service.

iOS and devices that come with it are not consoles. They are general computing devices and Apple is spending arm and a leg to prove that they are not.

 

[yabeweb]

Are we talking about the actual devs (i.e., software engineers/programmers)? Because I doubt the devs will gain much, if anything. Most of any profit increase goes into the pockets and investment accounts of executives. And I decided to look up some figures:

https://www.indeed.com/cmp/Epic-Games/salaries/Director#:~:text=Average%20Epic%20Games%20Director%20yearly,166%25%20above%20the%20national%20average.

https://www.indeed.com/cmp/Epic-Games/salaries/Software-Engineer#:~:text=Average%20Epic%20Games%20Software%20Engineer,which%20meets%20the%20national%20average.

You are thinking o lot about big company, smaller dev have rights too.

I am not talking about corp giving more money to their devs, but smaller devs getting more from their work.

 

[Apollo68]

Apple is in the experiences business.
Epic is in the whine business.

wrong. Epic is in the business of making Tim Sweeney money. Apple is in the business of maximizing shareholder value by any legal means deemed necessary and prudent.

 

[Apollo68]

Transaction processing, tax handling, distribution/content delivery and - presumably - marketing.

don't forget probably hosting as well.

 

[AdonisSMU]

I notice that the large app makers think the apps should be as expensive as the hardware abd platform itself. They dont want to pay the hardware and platform maker anything. Lol 😂

Business people are always looking to devalue other peoples hard work.

 

[a m u n]

Anyone with a brain knew all along that it was never about how much of a commission Apple was charging developers.

Epic just wanted their own App Store with their own commission fees. Epic is a company run by fraudulent scumbags.

 

[JimmyHook]

An Epic tax that yields no benefits. Hard pass.

 

[Apollo68]

Anyone with a brain knew all along that it was never about how much of a commission Apple was charging developers.

Epic just wanted their own App Store with their own commission fees. Epic is a company run by fraudulent scumbags.

I'd hesitate to call it "fraudulent" but Tim Sweeney is definitely scum.

 

[kiv.atso]

I am not against Apple making money from their own platform, I am not against the platform to be more open ( just like the Mac is open to other store and outside app purchases ) it’s very easy to understand too.

If I wanted more open platform I would use Android.

I would hate if some EU developer forced me to download an app from a website only. It means they might use private APIs to collect my data without my knowledge.

The best way to mitigate this is to stop using 3rd party apps, which I mostly did anyway. So, I couldn’t care less actually.

 

[Arsenikdote]

Hmmm the unreal engine? One of the best SDK on the market currently for developing a game?

I suppose if only people who purchase games are the ones using the Epic App Store and only apps that use the Unreal Engine are in the store.....you got a point!

 

[JimmyHook]

Hopefully everyone in the EU will download Fortnite and delete it before buying anything. They’ll have to pay an Epic bill lol

 

[WiiDSmoker]

I feel like there was definitely a meeting where they proposed charging 50% and someone had to point out the hypocrisy and they lowered it to 12% begrudgingly
\

How to win arguments - make crap up!!

 

[pacalis]

120 posts in and all one reads about is the EU, big companies and devs. Too bad no one cares what the consumer wants.

Consumers were not asking for this.

 

[aeneas07]

It does. They charge a $99 developer fee - as evidenced by the many free apps that don't pay anything more.


Agree - they should be entitled to charge a fee for the download of that app. Up to the point that the app was delivered to me.

But if I subscribe to Spotify within Spotify's app - that Spotify designed and created - it's between me and Spotify (or Epic, or whomever).

👉 Once I've bought and downloaded an app, it's between me and that app's developer. Very easy.

Not really very easy as then every app would be “free” to download and then have in app purchases to unlock the features. In the model based on your rules Apple gets zero and Spotify keeps all the revenue. So the question is what is the distribution and eyeballs of 1B plus devices worth? It may not be 15% of all future recurring revenue, but it surely is worth more than zero…and that lifetime value per customer is very different for Spotify vs photoshop vs a news app.

 

[macabrumorsab]

I think the bigger question is what is Epic offering for a 12% cut? We know Apple is offering the development tools, entire ecosystem, constant relevance through new products, etc.... Epic is creating a store on that foundation and then offering what? Nothing.

Not really sure whether you could not think of it yourself. But I'll give you a hint: who is earning money with each sold iPhone or iPad?

 

[Arsenikdote]

iOS and devices that come with it are not consoles. They are general computing devices and Apple is spending arm and a leg to prove that they are not.

"general computing devices" as a term in the 80's before the internet, in the 90's & 00's with the internet boom, and now today all mean vastly different things. I think there needs to be a wider discussion on all of this because software will only more and more displace hardware and it will take more and more resources to keep "modern" and "alive" and if companies are penalized for this it will stifle advancement as much as monopolies can. I don't think either side is "right" and I think the entire thing needs to be reevaluated.