Microsoft has criticized Apple’s recent changes to the App Store guidelines to allow native cloud gaming apps like Xbox on the iPhone and iPad.
The Windows maker says additional concessions are needed from the iPhone maker before services like Xbox Cloud Gaming can be properly monetized on iOS. Until then, there won’t be an Xbox Cloud Gaming app on the iPhone and iPad.
Specifically, Microsoft took issue with the App Store guidelines sections 4.9 and 4.7 in its submission to the United Kingdom’s Competition and Markets Authority (CMA) filed in July that was discovered recently by The Verge.
It slams Apple’s In-App Purchase requirements and anti-steering rules that prevent apps from sending people to websites to purchase subscriptions.
Microsoft is unimpressed by Apple’s cloud gaming changes
Appel’s thirty percent fee imposed on in-app purchases makes it “neither economically sustainable nor justifiable” to run the Xbox cloud gaming platform on iOS. Xbox Cloud Gaming requires Microsoft’s Game Pass Ultimate subscription, priced at $20/month. For every Game Pass Ultimate subscription sold through the iOS App, Apple would keep about seven bucks to itself.
“The 30 percent commission fee makes it impossible for Microsoft to effectively monetize its cloud gaming service offering, given that Guideline 3.1.3(b) prevents different content, subscriptions or features (including consumables in multiplatform games) being offered to iOS users (as compared to the content, subscriptions and features offered on other platforms).”
The anti-steering rule is another point of contention. Under Apple’s current rules, iOS developers are barred from adding external links or even telling people about cheaper web subscriptions. There are some exceptions for so-called “reader” apps, but they only cover apps that provide access to digital magazines, newspapers, books, audio, music or video, not games.
The CMA is investigating the case. The organization might require that Apple permit cloud gaming apps to function without in-game purchases or subscriptions.
Will Microsoft get native Xbox cloud gaming on iPhone?
Even though Apple relaxed its rules pertaining to cloud gaming services earlier this year, Microsoft has yet to release a native gaming service app for iOS. Nvidia’s GeForce Now is also unavailable on iOS for the same reasons.
A few years back, the Windows giant thought the EU’s Digital Markets Act would force Apple into charging its rules enough for it to launch a new iPhone app store dedicated to Xbox games. But the plan fizzled out as Apple’s changes didn’t go far enough, so Microsoft made a U-turn and abandoned the idea as a result.
Phil Spencer, Microsoft Gaming CEO, in February 2024 spelled out in black and white that Apple’s changes don’t go “far enough” for Xbox cloud gaming. “There’s no room for us to monetize Xbox Cloud Gaming on iOS,” he said.
Apple needs to learn a lesson the hard way
Apple continues to play a cat-and-mouse game with Microsoft and regulators. Games contribute the most to overall App Store sales, and App Store revenue is a jewel in Apple’s Services crown.
Further changes to App Store rules that would make it economically viable for Microsoft and others to bring their cloud-gaming services to iOS will have to come through the courts because Apple is hell-bent not to leave any money on the table.