Microsoft Claims Apple's High Commission Fees Make Xbox Cloud Gaming Impractical on iOS and Exclusivity Impossible
At the beginning of the year, Apple allowed developers to publish cloud gaming applications on the AppStore. These applications enable players to enjoy games stored in the cloud on mobile devices or other platforms, allowing even desktop games to be played on mobile devices.
However, to date, no major developer has launched a cloud gaming app for iOS and iPadOS. The reason is simple: Apple's stringent requirements make it seem pointless for developers to release cloud gaming apps on the AppStore.
One of the main issues is Apple's mandate that all cloud gaming subscriptions and functionalities must be paid for through its In-App Purchase (IAP) system, thereby giving Apple a 30% commission. Additionally, games subscribed to on other platforms should not be usable on iOS.
In essence, to comply with Apple's guidelines, a separate "region" would need to be set up for iOS, where players can only subscribe to and play games on iOS, with no possibility of cross-region play.
The UK's Competition and Markets Authority is currently investigating the situation with mobile browsers and cloud gaming and has issued a call for input. Leaked documents show that Microsoft submitted feedback to the regulatory body at the end of July.
Microsoft stated in the documents that, although cloud gaming is technically feasible, such applications cannot comply with several rules for technical and economic reasons. Specifically, Apple's 30% commission fee makes it financially unsustainable and unreasonable for Microsoft to monetize its cloud gaming service.
Microsoft also complained about Apple's lack of support for other app stores and the limitations of web apps. These restrictions prevent cloud gaming from accessing hardware features, adversely affecting the experience of playing games on mobile devices via cloud gaming apps.
The investigation by the UK regulatory body could help put pressure on Apple. However, since the UK has left the EU, even if the UK demands improvements, Apple may not comply, given the smaller size of the UK market. It might require intervention from the EU to force Apple to address these issues.