The hottest Black Friday deals
Android-based gaming devices have never really taken off, and at least part of that is likely due to Google’s steep cut on app sales forcing manufacturers to price themselves out of the market to make a profit.
(Image credit: Windows Central | Zachary Boddy)
Tim Sweeney is completely correct that Google’s statement is deceitful. The firm doesn’t mention the fact that Microsoft and Epic Games are opting out of the Google Play model due to its steep 30% cut on software sales. Xbox, PlayStation, and Nintendo all take a similar cut on their hardware platforms, but the hardware there is sold at cost or for wafer-thin margins generally speaking — the cut is there to keep the platform afloat. Apple conversely sells its hardware at a premium on top of its 30% cut for developers, which is a bit like having your cake and eating it.
But wait, Google itself doesn’t actually deliver its own hardware for the most part, so there’s no margin to speak of there generally speaking. Its Pixel phones have a vanishingly small global footprint, and its own Android Pixel tablet range has reportedly been cancelled. The Android business hinges almost entirely on software and services rendered through Google Play on third-party devices, while also feeding its mammoth ad empire (which, by the way, the United States recently described as a monopoly). Google requires its hardware partners to preinstall its apps and services on these handsets to gain access to Google Play, while also controlling the default apps on top too. This gives it a huge advantage when it comes to data powering its search and ad empire.
Its status as a middle man has irritated developers like Microsoft and Epic Games, who can’t grow new businesses, like the cloud gaming business, owing to that 30% cut on app revenue. Cloud gaming is unprofitable as of 2024 by all accounts, and the inability to sell in-app purchases on Google Play is one thing holding it back. At the same time, discoverability will be near non-existent without a Google Play listing, increasing Microsoft’s user acquisition costs.
As much as I loathe Google (in no small part for its anti-competitive behavior towards Windows Phone), it’s hard not to see their point of view to some degree. With the United States Department of Justice describing Google’s ad business as a monopoly, there’s a real chance that they might have to explore other avenues for Android profitability if they’re forced to dent its own ad business. It would be neglectful of them to not fight this, playing devil’s advocate for a sec, given that they could be forced to give up two revenue streams for Android instead of just one.
(Image credit: Microsoft | Windows Central)
Microsoft’s 30% cut on developers for Xbox games is designed around selling the Xbox Series X|S hardware as cheaply as possible for consumers and customers Microsoft has signaled that it intends to open up future Xbox consoles to third-party game stores like the Epic Games Store and Steam itself, but that vision is likely years away from materializing. Microsoft does take a smaller cut than usual on its Microsoft Store for PC games, though, at around 12% compared to the typical 20-30%.
I would argue Windows’ open platform model has been better for consumers than what is offered by iOS and Google-brand Android, where Microsoft takes 0%, leaving innovators to build business like Steam unhindered. Android is more open than iOS, allowing for easy side-loading and pre-installed OEM app stores, but the tight grip it maintains over Google Play does promote its own products at the expense of others. Amazon’s Kindle book app on Android, for example, was also forced to remove in-app purchases by Google, while Google continues to sell books itself via Google Play.
Where all of this goes will ultimately be up to the courts, but it could’ve all been avoided if Microsoft had just continued investing in growing its own mobile platform… you know, like Windows Phone. And THAT’S the bottom line!
And what’s the bottom line?
(Image credit: Microsoft | Windows Central)
- Walmart: Early savings on practically everything
- Target: Live deals on a huge range of products
- Dell: Top deals on laptops, gaming PCs, accessories, and more
- HP: Save big on laptops, desktops, accessories, and more
- Lenovo: Doorbuster deals on all Lenovo PCs, monitors, accessories, and more
- Newegg: Save on PC gaming accessories, components, and more
- Razer: Take advantage of free shipping for a limited time
- Samsung: Holiday deals on laptops, TVs, phones, and more are live
- Amazon: Constantly rotating sales on everything you can imagine
