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The CEO of Epic Games, Tim Sweeney, took care of quite a stir yesterday. In Cologne, Devcon is currently taking place (alongside the better-known Gamescom), which is an event intended for game developers across all platforms. And it was Sweeney who appeared on his panel yesterday and, among other things, sighed loudly about how developers are being ripped off by companies like Apple and Google through their trading platforms. There were even words related to parasitism.

It has been talked about for a long time that Apple (as well as others, but in this article we will focus primarily on Apple) charges relatively high amounts for all transactions that take place through the App Store. It's only been a few months since Spotify called out loudly, who don't like the 30% cut that Apple takes from all transactions. It has even gone so far that Spotify offers a better subscription offer on its website than in the App Store. But back to Epic Games…

In his panel, Tim Sweeney dedicated a short time slot to the development and monetization of games on mobile platforms. And it is precisely monetization and business terms that he does not like at all. The current situation is said to be very unfair to the developers themselves. Apple (and co.) are said to take a disproportionate share of all transactions, which, according to him, is unjustifiable and borders on parasitizing on someone else's success.

“The App Store takes a thirty percent share of your app sales. This is strange to say the least, as Mastercard and Visa do essentially the same thing, but only charge two to three percent of each transaction.”

Sweeney later acknowledged that the two examples are not directly comparable in terms of service delivery and the complexity of running the platforms. Even so, 30% seems too much to him, realistically the fee should be around five to six percent to correspond to what the developers get back for it.

Despite such a high share of sales, according to Sweeney, Apple does not do enough to somehow justify this amount. For example, app promotion is lousy. The App Store is currently dominated by games with marketing budgets in the order of tens of millions of dollars. Small studios or independent developers logically do not have access to such finances, therefore they are hardly visible. Regardless of how good a product it offers. Therefore, they have to look for alternative ways to reach customers. However, Apple also takes 30% from them.

Sweeney ended his speech by appealing to developers not to be treated like this and to try to find some solution, as this state of affairs is unsatisfactory and harmful to the entire gaming industry. Apple, on the other hand, will definitely not change anything about the current situation. It is quite realistic that it is precisely these App Store transaction fees that have shot the economic results of Apple Services to the dizzying heights in which they are currently located.

Source: Appleinsider

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