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Epic explains why it hasn't sued Nintendo, Sony and Microsoft over 30% fee
(www.gamesindustry.biz)
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I’ve been developing mobile apps since before the iPhone was a thing. I remember when the App Store was announced, including the 30% cut for Apple. There was a lot of excitement around the fact that developers could keep 70%.
Before app stores, this is how you distributed and charged for a mobile app: customers would send a text message with a keyword to a so called shortcode, depending on country this was a 4 or 5 digit phone number. For example, you would send ‘NAMEOFGAME’ to 12345. The user would then get a text message back with a link to download the game. The message they got back was a so called reverse-billing SMS (also known as premium SMS). This message would be billed to the customer, at a certain rate that you as the sender of the SMS could configure. This basically meant customers paid for games through their phone bill.
How this worked from the developer’s side:
Note that there was no store, no way for users to discover your game, so you had to advertise it as well. The telco’s took 50% for billing the customer, while you had to everything else. Of course the development tools for mobile apps were absolute shit as well.
So when Apple announced that they would let you keep 70%, would take care of hosting, payments, would provide a nice user friendly app store where people could actually find your app and provide decent development tools for you to build apps in, that was a fucking huge win.
There was no rule, but it was basically the only convenient way. Receiving e-mail on a phone was not at all common, typing a long URL on phone was a PITA and paying for stuff online was not something a lot of people were familiar with.
WIndows CE phones and the like were so niche there was no point in even developing apps specifically for them.
Also note that the above would usually only work in one country, if you wanted to sell internationally you’d have to make arrangements for a shortcode and RB-SMS for each country you wanted to sell in. Never mind the advertising campaigns. Apple taking care of that, with basically global reach and different kinds of payment methods without you having to worry about any of it was quite revolutionary.