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Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

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41–50 of 219 posts

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#41

That's a strange definition of lose. A third party doesn't contract with someone for their product launch, and that is considered a loss of money?

Yeah, that really got my goat too. Google getting a cut of Fortnite’s revenue would be pure rent seeking.

That is essentially what taking a large cut on your app platform is: rent seeking. It's your ecosystem, but it comes out of my pocket as the consumer (unless you're large enough to avoid, like Fortnite).

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#43
I wonder if this becomes a norm in the Android freemium gaming community, will they start advertising more Android ads to iPhone users. Maybe even start offering free "trade-up" program if they spend enough.

If a user spends $1000, and 30% goes to Apple, that's $300 that could of bought the user a dedicated gaming device that will allow them to avoid that 30% tax.

I love Apple, but 30% for in-app purchases is something I will never find comfortable.

I get the exposure, but a game like Fortnite already has enough exposure.

Will freemium gaming companies eventually produce their own device to avoid this 30%.

Only time will tell, but I can say that if I had a game generating $300 million in revenue, and 60 million went to Apple, I wouldn't mind spending a few million in research on how to get out of paying that 60 million for the next year.

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#44
post #27

Earlier quoted context omitted.

Also, what solution would there be? Allow other companies to bypass Google's revenue system in this area? How much will they lose from other companies who want to be treated equal to Fortnite. edit : This is a question folks, I'm not sure why you're down voting a question.. ya'll are touchy as hell lol. To put it differently, since I think my first attempt just confused you all in mass: If Google were to lower it's t…

I don't understand the framing of this conversation. Does other companies owe Google money by merely existing?

Depending on who you ask and how they feel about their platform, the answer is "yes, on that platform".

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#45
post #27

Earlier quoted context omitted.

Also, what solution would there be? Allow other companies to bypass Google's revenue system in this area? How much will they lose from other companies who want to be treated equal to Fortnite. edit : This is a question folks, I'm not sure why you're down voting a question.. ya'll are touchy as hell lol. To put it differently, since I think my first attempt just confused you all in mass: If Google were to lower it's t…

I don't understand the framing of this conversation. Does other companies owe Google money by merely existing?

No, it's the same writing that frames piracy as "costing" money to the developers. If something costs you some money there's the implication that you had the money, and then you didn't have it after that something happening. As much as they'd like to believe it, projected earnings aren't money you actually have

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#46
The funny thing about Google as a Gatekeeper is that it's already a Gatekeeper via search. Even in a world where there are no 30% distribution shares, most products still live and die by their ranking on search results for either brand searches or long tail keywords. It's not uncommon to see brands buying their own name as keywords just to rank #1 on search results pages that are more and more fully loaded with ads above-the-fold, including competitors who buy keywords against well know brands.

The Play store is just additional icing on the cake. They're not losing sleep over the one unicorn exception known as Fortnite. 99.9% of other companies do not have the word of mouth to overcome the various gates, whether it's Google or Apple or Steam.

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#47

Earlier quoted context omitted.

Yeah, that really got my goat too. Google getting a cut of Fortnite’s revenue would be pure rent seeking.

That is essentially what taking a large cut on your app platform is: rent seeking. It's your ecosystem, but it comes out of my pocket as the consumer (unless you're large enough to avoid, like Fortnite).

Discovery, ratings, etc., and managing payments are services with value, especially for small players with apps that don't have an established fan base before they are released for the paltform. Charging for these services is reasonable.

Allowing people to get apps that don't need these services elsewhere is also a good idea.

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#48
post #3

"Unlike Apple, which only allows apps to be downloaded from its own storefront, Google’s platform is more open." Oh the irony. Android is more open than iOS and yet its Google that EU found to be at fault with Android. How is this not a classic example that, if anything, Android provides a more open platform?

EU's document says that iOS does not compete in the same market as Android, so it was entirely excluded from consideration. Funny isn't it? :)

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#49
post #2

> In the process, it’s costing Google around $50 million this year in platform fees, according to a new report. It's not costing Google anything, and they're not losing money on this either. It's revenue that they might have expected to earn, which they're now not going to be earning.

Also, what solution would there be? Allow other companies to bypass Google's revenue system in this area? How much will they lose from other companies who want to be treated equal to Fortnite. edit : This is a question folks, I'm not sure why you're down voting a question.. ya'll are touchy as hell lol. To put it differently, since I think my first attempt just confused you all in mass: If Google were to lower it's t…

losing out on potential earnings isn't the same as losing money

Re: Google will lose $50M or more in 2018 from Fortnite bypassing the Play Store

#50
post #7

It's wild how a company distributing an Android app in the exact same way that they already distribute the PC version of the same program has blown up into this huge and controversial news story.

Yes, there are no headlines saying "Valve will lose $600M or more in 2018 from Fortnite"...
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