Microsoft's gaming CEO doesn't think iOS is open enough for Xbox gaming
In a new interview, Microsoft's Phil Spencer discusses how Microsoft is bringing its Xbox titles to new platforms -- but he doesn't think they'll find a home on iOS.
Microsoft is not bringing Xcloud natively to iPhone
Microsoft is expanding beyond its Xbox gaming console and Windows by releasing video games to Nintendo's Switch and Sony's PS5. It makes sense, then, that if the company is trying to get its games into as many hands as possible, it would bring those games natively to the iPhone.
But, that's not the case -- at least not yet.
Phil Spencer, Microsoft Gaming's CEO, said in a new interview with The Verge that Apple hasn't given the company an effective way to monetize Xbox games on its platform.
"There's not room for us to monetize Xbox Cloud Gaming on iOS. I think the proposal that Apple put forward -- and I thought Sarah Bond's comments on this were right on -- doesn't go far enough to open up," he says about the UK Digital Markets Act concessions.
Of course, he doesn't comment on the fact that -- as of iOS 17.4 -- Apple now allows single app streaming. Apple's change to what's permitted for streaming game services will allow Microsoft to make a "reader" app that would impose no fees beyond what the user purchases in-app.
Ultimately, what Microsoft wants is its own app store, everywhere. Spencer believes that mobile gaming should work more like those on desktop.
"We will continue to work with regulators, and Apple and Google, to create a space for alternative storefronts. I'm a big fan of how Windows works, and you've got a Microsoft Store on Windows, you've got Steam, you've got the Epic Games Store, you've got GOG," he tells the interviewer.
Microsoft has its own walled garden in the Xbox marketplace. It charges a similar fee to game developers that Apple's App Store does.
The company has repeatedly said this is okay because Xbox hardware is sold as a loss-leader. However, there is no provision in US law requiring App Stores to only charge fees if the hardware is subsidized by an app store on the platform.
"You have alternatives, and I think alternative ways for people to buy things creates goodness for consumers and creators," Spencer added.
While Apple doesn't allow alternative marketplaces in the US, the company will allow them soon the European Union with caveats. The move was made to comply with the EU's Digital Markets Act.
Read on AppleInsider
Comments
In all seriousness, the Xbox has always been a questionable business decision by Microsoft. I think they should have focused purely on making Windows PC gaming the absolute best it can be. I think part of the reason that PlayStation consistently beats Xbox is that Microsoft has split their attention between Xbox and Windows gaming to the detriment of both.
https://www.theverge.com/2024/2/16/24074729/microsoft-phil-spencer-xbox-everywhere-memo
https://www.ign.com/articles/xbox-next-gen-console-confirmed-business-update
They and Epic are hypocrites. They want every other platform open so they can leverage them to boost engagement with their own closed platforms.
Sony makes a profit on their PS hardware. This hardware is virtually identical to Xbox hardware. If Sony is making a profit on their hardware, it means something is wrong with MS's efficiency in their supply chain, selling and supporting their hardware, or whatever it is.
There is perhaps a brand advantage with Sony and Playstation. Wonder what its unit share in East Asia is? While MS is still recovering from there prior Xbox fiascos, and that's dragging their sales. Either way, the cost of PS5 and Xboxes are going to be pretty similar to each other. Both, basically PCs with AMD SoCs and SSDs. If Sony is making a profit on their hardware, it likely means MS is messing up somewhere with their Xbox hardware business, and it's really not their intent to sell at a loss.
Xbox Next-Gen Console Confirmed, Will be 'Largest Technical Leap in a Hardware Generation' - IGN
LOL...those stores aren't even remotely comparable in terms of the total number of games available. Microsoft and Epic are tiny boutique stores compared to Steam. The actual competition level is really lame compared to the rhetoric.
One of the reasons platforms are better closed for gaming is to prevent cheating. Microsoft conveniently fails to point out that game devs on open platforms like Windows install kernel-level anti-cheat software:
https://www.reddit.com/r/Helldivers/comments/19do1mv/helldivers_2_will_force_you_to_install_rootkit/
https://www.theverge.com/2021/10/13/22724037/call-of-duty-ricochet-anti-cheat-system-kernel-level-driver
This is highly invasive software that has system-wide permissions. The people who want open platforms need to undermine some of the security model of the closed platforms to get what they want. They have no right to demand that other companies make less secure software for all of their customer base for their own financial benefit.
And I think that Apple is being hypocrite. They made Google Search the default search engine for all Apple devices, even though they criticize Google privacy practices.
Apple CEO Tim Cook Criticizes Google and Facebook Over Privacy Policies | Inc.com
For a few billions per year Google have access to Apple customers, even though Apple though they don't have good privacy policies. Hypocrite, don't you think?
And what you said of people using Google anyway is irrelevant. If that's the case, Apple should do business with Facebook and TikTok and pre-install their apps, since people will use them anyway, right?
BTW, I don't see the relevance on your comment about anti-cheat systems and the article about MS CEO comments on Apple App Store not open enough to monetize.
Microsoft should be happy that being declared a gatekeeper doesn't affect Xbox.
Fortunately for them the DMA seems to have been targeted mainly at other companies.
To speak more clearly and accurately, Phil might say that iPhone and Xbox have similar business models (though Xbox is priced more aggressively out of the gate), and that they'd like to negotiate with Apple, just as they would like to with Nintendo and Sony, to get more Xbox games (and business for Microsoft) on Apple's walled-garden platform. But I doubt Microsoft's higher-ups and lawyers would approve of that sort of candor. I do appreciate him pointing out that basically it's a business issue over who gets how much money.
Of course there's nothing stopping them from making a Microsoft game store for Android, except that nobody would use it.