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Apple vs. Fortnite epic games the developers of Fortnite you're probably aware that there's a massive dispute ongoing, where not only has epic sued apple but, Apple has now removed Fortnite from the app store.
So I wanted to cover this topic for, so long now biggest battles between two tech companies so ghetto snacks ready sit back relax and enjoy.
Okay, so in case you've been following me
on twitter Adsense tech you probably know that I'm kinda on apple's side here, so for the sake of this blog being as unbiased as possible.
I'm going to split it into four different sections epic side apple side my thoughts and then finally, what's happening in the present day starting off with Great games are now one of the biggest game development companies in the entire world mostly thanks to their very popular game you know Fortnite.
But they were not always like that, whilst they were known for the very first three gears of war games epic games was mostly known for the unreal engine was not a game but rather a game engine that developers could use in order to develop their games easier and faster.
Now I have used game engines before mostly unity, I have played around with unreal engine as well for a tiny bit but long story short unity was originally aimed at mobile games.
While the unreal engine was pretty much the most popular and the most advanced engine, if you wanted to build some aaa open world games for pc and console and developers have been using the unreal engine
since it came out in 2001 and games such
as The Tom Clancy series, The Batman Arkham series, Borderlands Fable The Mass Effect series, Medal Of Honor, all the recent Mortal Kombat games Darksiders and dozens of popular games and series were
all made using epic games unreal engine.
But then in 2017 something happened epic games had this game called Fortnite in the works and at a time this was just a CO-OP RPG shooting game.
But after epic saw, how successful and popular PUBG's battle royale mode actually was they decided to add battle royale in Fortnite as well and release the game with saving the world, which was the original game mode as a beta game that was still in development, which you have to pay for and Fortnite battle royale was actually free.
It was fully free to play the game and save the world was only released as a full game three years later in June 2020.
Fun fact the battle royale mode in Fortnite was actually so easy to make and so simple that it took epic games just two months to build, whereas saving the world was a development for many years prior
to 2017.
As you probably all know Fortnite battle royale ended up being a worldwide success and overtook PUBG quite fast the main reason for being so successful was that you could play it on literally any platform from PlayStation to Xbox to pc mac and even ios and android.
Fortnite was basically everywhere unfortunately it wasn't going that well for PUBG, who ended up even suing epic games for copying their battle royale idea.
Even though it was actually Minecraft that first introduced The Battle Royale Genre thanks to a mod followed by an Arma 2 mod in daisy and fun fact the Japanese movie called Battle Royale from the year 2000 which was based on the 1999 novel
by caution, Takami was the very first to introduce the battle royal concept.
Yes this was even before the hunger games anyways, I hope that this gives you a bit more insight into epic games as a company
they're really more like a game engine company that then became massive thanks to Fortnite.
Now earlier this month epic games launched a silent update to Fortnite on ios. Where they purposely introduced a Direct Payment System meaning that users could pay epic games directly rather than the money going through an apple.
First, which would take 30 cuts now I'll cover why apple takes 30 cuts when I'm covering the apple side um but essentially epic games were not okay with apple taking
a 30 cut of their revenue so they wanted to avoid paying that, I mean it makes sense right 30 is quite significant now unfortunately avoiding 30 cuts was against apple's uh absolute policies.
So apple took down Fortnite uh until they fixed the issue quickly as apple did that
epic games had this massive lawsuit ready
and they sued apple and even released a full-on anti-apple
video and even a hashtag free four-night
PUBG is on app storefront page tournaments in you know four nights where you could get this pretty cool looking evil apple skin and they had all this ready on the spot.
So it was pretty clear that they've been preparing for this for quite some time now and intentionally wanted to get banned by apple in order for apple to decrease or even drop that 30 feet entirely and again that
makes a lot of sense Four knights made guess how much 1.8 billion dollars in 2019 alone billion not million in 2019 alone.
Which makes this the most successful game of 2019 and also one of the most successful games ever in history now epic games doesn't really share how many players they have on ios and all the other platforms.
But let's say if we estimate this as 10 of the total player base then apple would have taken 54 million dollars in commission and I'm pretty sure um ios and mac os and iPad os player base.
It is a little a bit of larger than just 10 percent this is why epic games want that committee to be decreased or even dropped they obviously want more profits like any other company.
But according to them, the users would Plus benefit from the fact that the prices for this would be lowered when epic games introduced a direct payment method in Fortnite.
The prices were two dollars less however epic was still charging one dollar more than the revenue that they were making after apple's cut so they were still making more money this way than by going.
The apple routes sim Sweeney the CEO founder and also the shareholder of epic games actually sends an email to Tim Cook Phil Schiller as well as Craig Federighi and Matt on June the 30th telling them that epic is unable to provide consumers with certain features in their ios apps and they requested the following number one allow epic games to have a direct payment method,
without apple taking that thirty percent cut and number two allow epic games to launch their own epic games app store on ios to compete with apple's own app store now these were some really big requests but I do see where epic's coming from they say that there are no other options on ios for game developers other than going through apple's system apple's calling,
an apple a monopoly and they want others to be able to compete with apple's own app store on apple's own devices epic games stated that on android you can indeed load apps so you can have a separate store that competes with google's own play store.
Which epic games do actually have but on ios, you cannot have another store other than the app store well technically you can have Cydia but I'm let's leave that out yeah you have to yeah let's leave it out but yeah officially just the app store.
Now on August 13th, the day Fortnite launched a new direct payment method, Tim Sweeney, the CEO of epic games emailed apple once again basically making them aware that they will be launching this update today and if they do get their game blocked they will be following the legal path in getting this sorted there you go,
This is pretty much what epic wants this is their side of the story okay so what about apple's side on this well apple doesn't take a 30 commission but they do take this from every single developer on the app store not just epic apple's argument is that they created the iPhone they created ios and they also created the app store the world's very first global app store,
On a mobile device and for that 30 cut apples giving developers number one exposure to literally billions of apple users number two hosting services on apple's app store and on apple servers number three tools to build their app such as Xcode number four a programming language that apple developed just for you.
Know ios development swift the developers can use number five access to thousands of guides and tutorials and help number six wwc which is literally an event just for developers that hosts an entire week full of workshops and tutorials for developers.
So that they can use those to update their apps and get those ready in time for the big ios release the next version of ios and on top of that apple's also manually verifying every single app that goes into the app store for not just malware but also performance issues and UI design just to make sure that everything is consistent and high quality.
All across the board and for everything that apple does they feel like they do deserve that 30 percent cut it would not be fair for apple to have to fund the app store through let's say airport sales rather than you know directly through the app store's revenue.
Okay, now when it comes to epic's second request releasing a competing app store apple's argument is that they of course build the iPhone as well as ios in order to maintain the high quality and security that they praise themselves for they need this to be their whole system really the reason.
Why we only have apple's app store on ios okay so what are my thoughts on all of this so when it comes to that 30 commission epic games the first issue I'm sort of like in the middle here.
So I don't agree with epic where they basically want this fee removed as apple's clearly providing a ton in return for that 30 commission but then at the same time I don't agree with apple uh here either at 30 is true quite a large chunk you see when steve jobs introduced the app store back 2008 to the iPhone 3g.
This is what he had to say we keep 30 to pay for running the app store so initially, the 30 cuts were only there, so help apple run the servers. But in 2008 apple was only worth 75 billion dollars today apple is worth more than two trillion dollars like that's an astronomical growth in just 12 years thanks, Tim,
no, honestly that's literally Tim's doing now fun fact apple's entire app store in 2019 alone made over 50 billion dollars in revenue o in a single year that 30 commission that apple takes made money as the apple was worth entirely back in 2008 as a company when the app store was launched.
This apple needs that 50 billion dollars in revenue when they have two trillion dollars probably not however I'm not saying that Apple should drop the commission entirely as I still believe that they do deserve to charge some sort of commission from developers and like I said to you to know it wouldn't be fair for apple to keep or maintain the app store using the AirPods or something revenue.
You know that revenue needs to come ideally as a company using that service or using that fraction of the company if you know what I mean but I still think that 30 is too much I would say that 15 would be fair and anything lower than that that would be deeply appreciated and it would be you know beneficial to developers and to some extent to the consumers as well.
Now the thing is an apple isn't the only one to take a commission google is also taking a commission the PlayStation store is also taking on the Xbox game store Samsung's galaxy store the Nintendo e-shop steam as well as physical stores such as GameStop amazon best buy Walmart and so many more they all take a commission if you want to sell your product through them and take a guess what percentage all these companies charge as a commission that's right.
It's 30 they all charge 30 probably because apple was you know the first one to have like a digital store uh as big as the app store and they had 30 it's probably because of that um but yeah the idea here is that no matter where you sell your product you
have to pay a 30 commission there are only two exceptions to this so the first one being Microsoft Microsoft store on windows only so not on Xbox which has recently dropped the commission to only five percent and then the epic game store which is charging 12 other than that everyone else is charging 30.
So I do hope that apple drops this to 15 or you know or so um as that way all the other stores will likely follow suit and drop the commission as well in order to stay competitive fun fact youtube actually takes a 45 commission which I think is just gigantic but I am happy to give youtube that big of a share because without
youtube I wouldn't even have that income home in the first place and it's the same thing with the commission uh that these stores charge without any of these stores you wouldn't have any audience and if you do your audience would be just a fraction of what it could be otherwise now
something that I really want to mention here regarding this commission is that there are a few stores that do make some exceptions to a few users which I think is really messed up so Samsung's Galaxy app store they actually do take a 30 commission but you can actually cut a deal with Samsung if you're big enough and there are some reports that epic
games have actually struck a zero percent commission deal with Samsung which I think is again really messed up considering that you need to be pretty big to strike that deal and speaking of that apparent apple has also struck a deal with amazon where the apple was not taking the 30 commission on movies bought by users who already
had an amazon prime membership so only new prime members would trigger apple's 30 commission so yeah I think that these two cases are really messed up um I think no store should make any exceptions whatsoever you know that's the deal you can't make that's the rule 30 you can't make any special deals or anything like that now when it comes to epic games is
second request their own epic game store on ios I personally don't agree with that at all it's apple's own platform why would they allow a competing store They didn't even to mention the fact that on it this will affect the quality and security of the apps available the PlayStation doesn't have an alternative to the PlayStation store the Xbox doesn't have an alternative to
Microsoft Xbox store either so why should ios have one epic's argument here is that you can indeed install a third-party store on android but you cannot do it on ios at all but even with this argument site loading isn't something that the average user would be aware of and you know something that the average user could
actually do epic already has a game store on android but it wasn't doing so well and they decided to move to the play store but not before suing google.com as well in order to avoid google's 30 cuts obviously that lawsuit didn't go well and they ended up staying on the play store in the end and just you know accepting that 30 cuts now
one counter-argument to this would be we have the epic game store on mac os but why? right we actually do have it on macOS but not on ios and I think that's a really good point thank you well me I'm actually debating myself here mac os doesn't have as many limitations as ios do,
at the same time just look at the quality of apps in the epic game store or even steam for mac versus the apps that we get in the app store all the app store games they use the metal they run very smooth they're also very well optimized whereas Fortnite on mac for example even if you have a very
powerful mac that can play it really well on windows on mac os on the exact same hardware it has random freezes and many frame drops that pretty much makes it unplayable still apple made the entire platform from the hardware to the software and if they don't want to
compromise on the quality and security of their app library I do support that entirely okay so now that I've covered both sides plus my thoughts what is the status of this as of right now by the way if you are enjoying this video and if you want to see more in-depth tech blogs like this one hopefully is then uh definitely follow me,
you know it's free so shortly after Fortnite got banned by apple guess what google banned it as well as Fortnite had implemented that direct payment system on the play store as well and google has also removed it and epic games basically had a lawsuit ready for google as well just minutes after the ban so everything was carefully planned but they haven't targeted
Google as much as they did apple mostly because they do have their own third party store on android only that it's far more difficult to access than compared to google's own play store apple then gave epic games a deadline until August 27 to release an update to their game to fix that direct payment issue or apple would close epic games developer account essentially
taking all of their games and products of the app store luckily epic doesn't have loads of games it's just Fortnite and infinity blade but I do have the unreal engine if you guys remember that from earlier in this video and what this band meant was that Apple was planning to revoke epic's unreal engine license on all of apple's products meaning that no developer could use the unreal engine at all.
So all of any third-party games that use a real engine that I've listed before and more they would be banned on any apple devices and developers would not be able to update or even develop new games using the unreal engine on apple hardware which I think is really really messed up.
So I was against this really against this from the moment I've heard about it third-party developers should not be affected by this whole apple versus epic dispute at all anyways apple and epic had a court hearing which obviously epic requested an emergency hearing and the judge basically ruled the unreal engine ban to be completely unfair as it was.
So they forbid apple from doing it but they did give apple the green light to keep Fortnite off their platform if Fortnite doesn't want to follow apple's rules and pay that 30 cut the lawsuit is still ongoing and looks like it might even take a few years to get it fully sorted yeah got a lot of lawsuits so in the meantime epic games released a few more anti-apple videos just mocking apple and trying to rally.
Their Fortnite community against them I personally think that's messed up and completely unprofessional so I'm not okay with mockery of any sorts in the meantime apple's keeping Fortnite blocked until epic updates the game so I think it's good that Apple is still leaving the door open for epic to return when they want to return now the game is still playable.
If you have it installed but you would not be able to download it again if you do not have it installed and if you open up the game you'll notice that all the in-app purchases are gone the battle pass is also gone as well and the game itself is stuck to the pre-season 4 updates also app updates now started promoting.
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