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Microsoft's new app store pledge preserves its walled garden on Xbox

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Microsoft has announced a series of 11 pledges to do with App Store and fair dealing with developers, but won't apply 4 major ones to its Xbox store.

As governments around the world put pressure on Apple and Google over regulating their platforms, Microsoft has announced what it calls "a principled approach to app stores." Specifically done to adapt "ahead of regulation," Microsoft says its 11 principles address its "growing role and responsibility" in the market since its acquisition of Activision Blizzard.

"[Too] much friction exists today between creators and gamers," says Microsoft in a blog post, "app store policies and practices on mobile devices restrict what and how creators can offer games and what and how gamers can play them."

"Our large investment to acquire Activision Blizzard further strengthens our resolve to remove this friction on behalf of creators and gamers alike," it continues. "We want to enable world-class content to reach every gamer more easily across every platform."

"Put simply, the world needs open app markets, and this requires open app stores," says Microsoft. "The principles we're announcing today reflect our commitment to this goal."

Open App Store Principles

What Microsoft calls its Open App Store Principles, are 11 pledges that fall into four categories:

  • Quality, Safety, Security & Privacy
  • Accountability
  • Fairness and Transparancy
  • Developer Choice

The pledges in these categories include ones such as enabling all developers to access the store, and protecting consumers with security and privacy tools. Microsoft says it will "hold our own apps to the same standards we hold competing apps," and by implication, avoid the anti-steering criticisms that Apple has faced.

Of the 11 pledges, Microsoft says only its first 7 will apply to the Xbox store. That means Xbox won't benefit from any of the Developer Choice category.

The pledges in this category all revolve around payment systems, which is key to the major criticisms of Apple and Google.

"[Some] may ask why today's principles do not apply immediately and wholesale to the current Xbox console store," says Microsoft in its blog. "It's important to recognize that emerging legislation is being written to address app stores on those platforms that matter most to creators and consumers: PCs, mobile phones and other general purpose computing devices."

"Emerging legislation is not being written for specialized computing devices, like gaming consoles, for good reasons," it continues. "Gaming consoles, specifically, are sold to gamers at a loss to establish a robust and viable ecosystem for game developers."

Microsoft concludes by saying that "we recognize that we will need to adapt our business model even for the store on the Xbox console," and that it will be "closing the gap... over time."



43 Comments

freeassociate2 3 Years · 217 comments

So don’t sell at a loss, and produce enough of them? (Instead of artificial shortages that are obvious ploys to boost desirability.)

The “robust and viable ecosystem for game developers" argument is such horseshit if you look at where indie developers are actually making money (or rather not making money…) Does anyone buy the idea that MS is soooooo into gaming that it loses billions of $$ on a passion project? (Or that that would be legal, given it’s duty to shareholders.) 

I’d argue that MS and others like it intentionally create the economic circumstances that make working for AAA studios the only sad “viable” option for most developers. The only people that are benefiting here are investors.  

Beats 4 Years · 3073 comments

So much stupidity I don’t know where to start. Translations: “Mobile phones should be stopped!! We failed at making iKnockoffs so damn them all!!” “App stores should be open except ours!!” “We sell our hardware at a loss so punish everyone who makes a profit!!”

lkrupp 19 Years · 10521 comments

Corporations are like politicians, if their lips are moving they are lying. Like politicians, they promise the moon but deliver something else completely. Virtue signaling by corporations is the most laughable tactic of all. As always and forever with corporations and politicians... follow the money, baby.

foregoneconclusion 12 Years · 2857 comments

Microsoft keeps claiming that they sell Xbox at a "loss", but refused to provide any actual numbers to verify the claim during the original Epic trial. The truth is probably closer to "consoles are sold at a loss initially". Sony has already stated that specific models of the PS5 became profitable within the first year of launch. There's no real reason that the Series X couldn't do the same. 

As for their Open App Store principles, it's obvious that it's mainly about getting access to Apple's hardware and not much else. It's not a coincidence that companies like Epic/Microsoft that were so heavily oriented around PC/consoles are suddenly concerned about gaming on mobile at the same time that mobile gaming now generates more revenue than PC/console gaming combined.

highframerate 2 Years · 40 comments

So don’t sell at a loss, and produce enough of them? (Instead of artificial shortages that are obvious ploys to boost desirability.)

The “robust and viable ecosystem for game developers" argument is such horseshit if you look at where indie developers are actually making money (or rather not making money…) Does anyone buy the idea that MS is soooooo into gaming that it loses billions of $$ on a passion project? (Or that that would be legal, given it’s duty to shareholders.) 

I’d argue that MS and others like it intentionally create the economic circumstances that make working for AAA studios the only sad “viable” option for most developers. The only people that are benefiting here are investors.  

If consoles weren't sold at a loss, they would cost 50% more and far fewer people would buy them. You folks don't understand: not very many people buy consoles. About 50 million XBox One consoles were sold over 7 years. That is probably about the number of Google Pixel phones that sold in that timeframe. And no, these shortages aren't artificial. First off, these shortages did not exist with the PS4, XBox One, PS3, XBox 360 etc. These shortages are due to TSMC being the only foundry capable of making an integrated SOC for these devices that don't overheat. This is the same TSMC that also can't fill all of Apple's orders, forcing Apple to prioritize iPhones over iPads, remember?
AMD's Zen 4 chips were supposed to launch in November 2021. At this rate AMD will consider themselves lucky if they launch in October 2022, and they have even had to shift some orders to Samsung, just as Intel - who will use TSMC's fabs for some orders in 2023 - considered doing and Nvidia did last year for Ampere GPUs.

The console business model is totally different from the mobile device one. Samsung alone sells more smartphones in 1 year than the entire console industry - Nintendo, Sony, Microsoft and the minor players - sells in an entire generation. Yes, the Nintendo Switch sells at a profit. But do you know why? The Nintendo Switch is actually the Nvidia Shield K1 Android tablet from 2015 running the Nintendo 3DS operating system (based on FreeBSD) along with some Android components and Nvidia software. The Nvidia Shield K1 tablet was $200 when it originally launched! 

I can see you bashing Microsoft - decades of hate I guess - but you realize that by doing this you are also trashing Sony, whose console costs the same, whose shortages are even worse, and who has nothing to do with these app store battles with Epic Games and regulators. The PlayStation is their last big money hardware product left. The iPod and iPhone killed off the Walkman, boom boxes and the other consumer audio products that were massive for them in the 80s and 90s. Streaming - and streaming boxes - killed off their VHS, DVD and Blu-ray line. They so badly botched their attempts to make Android devices that they don't even bother to distribute more than a few units outside Japan (iPhone 70% market share) anymore. Their TV line is being battered by South Korean and Chinese competition. They are also only "one among many" when it comes to selling headphones (where they get crushed by AirPods) and speakers (getting devalued by smart products from Amazon, Sonos, Google and Apple). And they ditched their PC line ages ago because they could no longer compete with HP, Dell, Lenovo and Apple (Toshiba made the same decision). 

If you have some business plan or strategy where Sony could make $200 per unit on the PS5 and still sell enough to make money selling $70 copies of the Spider-Man game go ahead and share it. My guess is that you don't, and you don't care what happens to Sony or the console market so long as Apple gets to keep doing whatever Apple wants. You are probably ROOTING for the console makers to fail so Apple could take their place. Just as pretty much everyone on this site was rooting for Nintento to fail 5 years ago so Apple could buy them and make Mario, Link, Pokemon etc. exclusives on Apple TV (so that people would actually start buying them), iPads and iPhones.