Tesla CEO Elon Musk has backed Fortnite video game developer Epic Games in a dispute with Apple over an App Store commission. “App Store fees have become the de facto global tax on the Internet. Epic is right, ” he wrote on Twitter.
He’s right. Apple taking a 30% cut is ridiculous. They make billions off hardware unlike console makers who barely make anything. Sony, Microsoft, and Nintendo rely mostly on software to make money. Big difference.
Yes they are subsidising their hw to sell games. Apple not so at all.
Xbox relies mostly on money ftom Microsoft, let's be real. They've gotten a dozen or more get out of jail free loans from Microsoft. Playstation and Nintendo invest and fund their own division from within that division.
There is no difference. Either 30% is wrong or isn’t.
30% is used all across every storefront and marketplace pretty much around the world. It's how it is. You want to sell stuff in that store, regardless if it's digital merchandise or physical, it's usually 30% profit to that store. You can't change every business worldwide, and it's their right to charge what they want, and the right of a consumer to shop there, as well as the right of the merchant to put their product in that store. Epic signed a paper that said they will lose 30% on all sales. They went around that contract and made money outside of that on their devices. That's a breach of contract.
Agree'd. You can't say Sony, Microsoft, or Nintendo is justified for doing it because they lose money on hardware (which isn't always the case, PS4, Switch now post revenues because of economies of scale). Steam does the same thing, but with less take. Eventually, the developers will have to deal or move their software to a new platform. People do not buy phones for video games, hence people will not move because a video game is android only. That's why we have consoles and platforms.
“You can’t change every business model worldwide” False. Innovation happens all of the time. The shit we consider standard today wasn’t just a generation ago.
“He’s right, no company should have a proven business model on existing ideals that works. It’s unfair to be better and they should be held to a different standard” 🤦♂️. Oh you people and your double standards and lack of logic.
Agents or 'finders fee' is/ are usually 20% so 30 is really taking the biscuit considering they don't even do much for it. 20 is much more reasonable.
You're so right. They only invested in the entire platform.
Musk only cares cuz he wants in on the business. None of these billionairres give the tiniest crap about normal people. Nobody should care at all what he thinks.
Agreed. Musk personally pays almost no taxes (e.g. no income tax in 2018) despite his companies receiving billions in government subsidies, tax breaks and contracts, and being a billionaire himself. Not wanting to pay this "global tax on the internet" is just an extension of his greed. While a reduction in this fee would benefit indie developers and small companies, you're right - he isn't thinking about normal people anyway.
Says the guy who tries to fix the crypto market…
you can pretty much say succeeds at fixing the crypto market. his influence has been as big as countries' influence probably even more.
This is coming from a man who is making billions off of tax payer electric subsidies. In reality, that is where most of Teslas revenue comes from. If you get something from the Apple store, then I see no issue with Apple imposing a tax. The reality is that another company will come that supports devs better. Government should not get involved in the US and should let the free market correct the issue as it always does (look at the good reception of open platform on Steam Deck). There is also an option to bypass IOS and use Andriod or Windows. Playstation and Nintendo imposes as tax on their consoles, if it is wrong for Apple then it is wrong for those brands as well.
That is 100% correct! People love to hate this because it’s Apple. But all these companies have this same tax. Epic tried to be funny and is now trying to force the gov to make apple put their games back on the App Store and cut the tax. But they are more then okay with giving Playstation money “for money lost on their App Store”.
I agree that the 30% cut is not really the issue however the real issue is Apple's monopoly. Unlike Android, iOS is a closed system and Apple aggressively tried to shutdown jailbreaking over the years until they lost a groundbreaking court case not long ago. Basically to explain the specifics: iOS only allows you to have access to the App Store and no other marketplace. You cannot download apps to your iPhone without the App Store. That's a form of monopoly. Ironically, in Epic's suit against them, Apple hit back saying that you "can" have access to other stores as jailbreaking is now legal. The funny part here is that Apple had previously been trying to make jailbreaking illegal and now they're using it as their defence. They are also always trying to fix every exploit that enables jailbreaking in new iOS updates. Because of these practices, over 90% of app purchases on an iPhone are through the App store. The idea that the "market will correct itself" has been disproven all the time for centuries now. As long as there are some kind of structure/system in place, smart people will try to exploit it as much as possible to profit. This is why you regulate, and this is why there are antitrust laws.
A non biased, no agenda, non hypocritical statement. Actually hold on…
The margins to physical stores for things are far higher than 30%. I hate apple as much as the next apple hater, but I see nothing wrong whatsoever with a store taking a sizeable chunk of profits. I work in a shop and our margins on most things are way more than 30%. You don't like the retailers margins then don't sell through them, simple as that. I don't think epic stand a chance of winning this case tbh.
That really depends on the product. Margins vary pretty widely in physical stores, with many products being sold at a loss or with a less than 5% profit margin. At least for Walmart, even electronics are not sold with near a 30% margin.
Yeah that's big supermarkets though and electronics in general have lower margins. I sell building supplies and in my previous job I sold furniture and both of those have closer to 70% margins. In fact most furniture has way more than that, trust me, furniture is a rip off 😅
Epic is wrong, though. Epic only cares about Epic's pocket and not other people's pockets. I mean, Apple provides you with hardware, platform, they process subscriptions, payments, user data and so on. It's not free. And it's not only Apple thing - Steam, Sony, Microsoft all handle that stuff. IMO, there must be an alternative to AppStore (like there are alternatives with Play Store), but before it's created, you must follow the rules (that you agreed with before joining them and publishing your app!). I mean, someone must pay for traffic, servers, payment system commissions and so on, right? And you do know that you have an option to not pay to Apple, right? Just don't enable in-app purchases and sell stuff outside of their ecosystem. But that's «too much to ask», isn't it, Epic and Tencent gotta eat (caviar) /s
Yeah! How dare a company that pays to host a storefront have the audacity to ask compensation for hosting 3rd party software, and giving it publicity. I like Musk, but he's always highly critical of businesses he doesn't own, yet is pretty strict with his own.
Regardless of what we think of Epic and regardless of their intentions, phones are like computers, they should have custom stores to compete in prices. [e.g. steam/epic/apple..etc]. ''According to Cook, if the court allows the use of third-party marketplaces in addition to the App Store, this will become a problem for users, including due to the risk of fraud.'' Ridiculous and a self defeating argument. If apple want to act superior to [android and computers] than they can easily make alternative payment methods in a way that suits their ''security'' standards. He just don't want to do it. clearly it is not about security, it is about money. Unlike Sony, Apple's hardware sales already delivering [impressive/crazy] profit so even if they got 0$ from the software they will still stay billionaires, whereas sony are selling their hardware with a loss or little profit so that in the future the software produce the money. I don't care about the market rules, i care about what makes sense. If it takes me 5 years to make a game. If i put my soul into it, i expect to have at least 80% of the profit from a company that takes zero risks for me. I stand with the developers, i'm against such stupid rules that only make the rich more rich and the poor developers are screwed.
I smell greed all over. Apple is worth more than $2 Trillion, I guess they need more $$, seems this is not enough. Greed is like a cancer but there is no cure, you can get rid of one greedy fucking company but more will pop up.
billionaires got nothing else to do in life but accumulate more and more wealth. They all do it.
How the heck is me charging a fee for the use of my online store a tax on internet?
Lmfao I’ll say it once, I’ll say it again. If you don’t want access to apples market, don’t fucking be on it. Super simple shit. Can’t wait til epic loses this dumbass case. The only reason Elon would support this is he wants access to Apples market for cheaper too. There is literally zero other reasons. Epic wants more money. Very simple. Build your own phone, marketplace and security and boom, do what you will.
Epic games is 40% owned the the Chinese Communist party...he just wants the Chinese bucks,same as marvel and Disney,NBA, Activision.
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