The most well-known video game distribution platforms are Stem, the App Store, and the Play Store. Thanks to them, for several years now, we've been able to buy and play our favorite games in just a few clicks. Convenient, accessible to all, easy to use, and offering a wide range of games, these platforms have always been successful. Unfortunately, these boom years are coming to an end. For some time now, their monopoly has been challenged.
A stifling monopoly
Today, video game distribution platforms have a true monopoly on their market. They thus have almost absolute control over developers wishing to promote their video games to the general public. In doing so, the platforms do not hesitate to impose very high commissions.
This forces independent creators to pay a high price for minimal visibility, even if it means being unprofitable. But faced with this injustice, some have decided to rise up. One of the best examples is the battle between Epic Games and Apple.
Epic Games vs. Apple or David vs. Goliath
A Declaration of War
During the summer of 2020, Fortnite publisher Epic Games launched a battle against Apple. This was to protest the 30% cut Apple takes on consumer transactions made through the App Store. A cut that Epic Games claimed was far too high. Thus, in August 2020, it attempted to circumvent the iOS payment system, and therefore the commissions.
As soon as Apple discovered the scam, it immediately banned Fortnite from its store, believing that this was a clear breach of contract on the part of Epic Games. As a result, iPhone and iPad users could no longer download the game, or, if they already had it, no longer had access to the updates essential to its proper functioning.
The Game of Alliances
Following this event, Epic Games will face Apple to negotiate whether or not to reduce the 30% levy and whether or not to reinstate Fortnite in the App Store. Moreover, aware of Apple's leadership in the negotiations, the publisher has formed an alliance with a dozen companies, including Deezer, Spotify, and Sonos, to counteract the trend.
Indeed, a coalition of companies that operate popular iOS apps may have the opportunity to demand concessions from Apple by threatening to collectively leave iOS. Gathered under the banner of the "Coalition for App Fairness," they want to change app store regulations. They will even go so far as to attack, in addition to Apple, Google, another giant of the "GAFAM" (Google Play) group, which also charges high levies through the Google Play Store.
A Parody Close to Reality
During this battle, an animated video created by Epic Games parodied an old Apple commercial from 1984 to market their very first Macintosh. The commercial, created by Apple, compared IBM to the tyrant in George Orwell's book 1984.
Epic Games reversed the roles and made Apple look like the tyrant. The slogan of Apple's commercial was: "On January 24, Apple Computer will launch the Macintosh. And you'll see why 1984 (the year) won't be like 1984 (the novel)."
Epic Games' advertising slogan was: "Epic Games challenged the App Store monopoly. In retaliation, Apple blocked Fortnite on a billion devices. Join the fight to prevent 2020 from becoming 1984."
Evidence of a Heavy Monopoly
“The games market system is quite unfair. Most of the money made goes to the middlemen: app stores, social networks. This system is broken. We must not accept it as the status quo. We must constantly be on the lookout for better solutions.”
Tim Sweeney, Founder of Epic Games
“Valve doesn't earn 30%. You gain almost nothing now from being on Steam, other than the fact that their near-monopoly has limited your options. Steam doesn't drive users to you at all.”
Anonymous developer from the Mission market researcher tells Valve
“Getting 30% for not providing marketing support isn't fair.”
Anonymous developer from the Mission market researcher tells Valve
“Buyers aren't aware of new games, so games fail… the popular ones… are covered, but many other good developers lose out.”
Anonymous developer of the market research mission tell Valve
"For most purchases made in its App Store, Apple takes a 30% cut of the purchase price. No other transaction fee in any industry comes close. This app tax significantly reduces consumers' purchasing power and
