There is no question that
Fortnite is currently owning the gaming industry as well as determining its current direction. Many of the biggest gaming studios want a piece of the Battle Royale pie, except maybe Microsoft, as do the gaming platforms. Like Minecraft, Fortnite is available just about everywhere: from the more traditional PC, Xbox, PlayStation and Switch, to macOS, iPhone, and iPad, almost everyone can play the game wherever they are, though not with one another if you're on PlayStation.
There is one glaring exception to the platform list: Android. While Apple has a healthy portion of the mobile market, they are still #3 behind Samsung and Haiwei, both of which run on Android. In fact, Android holds 85% of the phone market, meaning that the game is missing the majority of the mobile gaming market. This week, a bit of an explanation was given as to why in the form of an announcement of the distribution for the game.
Rather than distributing the game through Google Play, the game will instead be distributed directly from the company's website. This will be inline with the distribution model for both Windows and Mac, where downloading the installer from the website is the only way to play. The experience will vary depending on the version of Android being run. If the device is running Oreo, the experience will be similar to installing on Windows: clicking the download button will prompt about the dangers of downloading from the internet and allow you to bypass. If the device is running pre-Oreo, the experience will require turning on a feature in the settings menu before trying to install. This method can open the device up to security problems, though, so it should be disabled immediately after install.
Epic Games CEO Tim Sweeney has had a lot to say on the topic since the announcement. He has acknowledged the security issues inherent in installing from a website. First, there will be malware-laden clones all over the web which will be trying to trick people who aren't paying attention into installing fake versions. In fairness, there will also be these fake versions in the Play Store. Also, turning off security on older devices can be incredibly dangerous for those same users who accept any prompt on their screen. Sweeny says,
Open platforms are an expression of freedom: the freedom of users to install the software they choose, and the freedom of developers to release software as they wish. With that freedom comes responsibility. You should look carefully at the source of software you're installing, and only install software from sources you trust.
That makes sense when you're dealing with responsible parties, but a kid with a phone is neither responsible nor are they careful. These are the users that Google and Apple were working to protect with some of the features of their respective stores. However, with some of these protections comes something else: a monopoly on the market. Especially for Apple, who does not allow sideloading of apps, but also for the majority of Android users, the platform makers have a monopoly on apps. That is how they can get away with gouging developers for 30% of all sales.
30 percent is disproportionate to the cost of the services these stores perform, such as payment processing, download bandwidth, and customer service.
Because Epic doesn't need any marketing help from Google to make
Fortnite a success on Android, they could very well have success with sideloading apps. However, for smaller companies, this is simply not possible and, in return, are forced to pay the 30% commission to Google for little to nothing in return. Epic might believe they are fighting the good fight, but it will likely not lead to anything but headlines for themselves.
Since the beginning, one of the top ways that people discovered new apps for iPhone, iPad, and macOS has been through the Affiliate Program. Through the program, websites and influencers alike could promote one or more apps and make a small commission on sales. The program is what has made app review websites possible, which makes finding new apps easier while giving a consistent view of these new apps.
The program was responsible for 7% of all app purchases in the store in 2017 - a huge symbol of success. The success of the Affiliate Program has been in large part because of the overall lack of discoverability in the App Stores themselves. Over the years, Apple has tried to make the experience better, with features like Today, but the company has never quite understood the process of discovery. The Today tab seems to be the same for everyone, regardless of their interests. As I am writing this, for example, I am being advertised a category called "Texting for Tweens" which has no value to me as a user. In addition, the apps being featured are all products that the majority of people already know about: Hulu, Netflix, HBO Now,
Prime Video, etc.
This behavior is the opposite of discoverability: it is just featuring of already successful apps. Thankfully we have the Affiliate Program to help promote apps that you don't already know about. That is, until October 1, 2018, when Apple will be removing apps and in-app purchases from the program entirely. This move on Apple's part is likely to cause app-centric websites to have revenue issues, meaning many of them will close. It will be a big hit to marketing for new apps unless Apple's claims are to be believed.
In a letter sent out to current affiliates, Apple claims,
With the launch of the new App Store on both iOS and macOS and their increased methods of app discovery, we will be removing apps from the affiliate program.
So, Apple is working on something new in the App Store to promote discoverability. The App Store on the current iOS 12 beta does not have anything new or exciting as part of it, so either the new features will not be previewed ahead of time, or it won't launch until the new devices are announced later in the year. The latter would make sense, being as October tends to be iPhone announcement time.
This does serve as another reminder that building a business on someone else's brand is always a dangerous idea. When the company changes its priorities, you can lose your entire business, as these app discovery websites are unfortunately about to discover for themselves.
In what is probably the least surprising news of the week, semi-popular service MoviePass is in financial trouble. The news broke on Thursday when the service unexpectedly shut down entirely, preventing people from purchasing tickets for movies through the platform. After discovering the issue, an SEC filing from the same day was uncovered, showing that the company had completely run out of cash. Because of the lack of money, the company was unable to purchase tickets from theaters, making the service entirely useless.
While it was a surprise at the moment, especially for those who had arrived at a movie theater expecting to use a service that they had paid for, it is not a surprise for anyone who has been following the company's story. The service allows people to pay a set monthly fee and get a movie per day in the theater. In general, the service costs about the same as a single movie in most theaters nationwide, meaning that you get around 30 free movies per month.
In retail, there is an expression, "If you sell dollar bills for 90 cents you'll have a lot of customers, but eventually, the dollar bills will run out." The expression was commonly applied to budget cellular service MetroPCS, which eventually ran out of dollar bills and sold the company to T-Mobile. In this case, MoviePass is already owned by a parent company: Helios + Matheson. That means that there is no last-ditch effort move left. Their only choice was to borrow more money, a total of $5 million cash and $1.2 million in original issue discount from Hudson Bay Capital Management.
This, however, is only a temporary stopgap measure. The company needs to figure out how to stop losing money and actually turn a profit. If they don't, they likely will not make it out of the summer alive. If that happens, most users may only lose a couple of dollars. The real victims would be those who believed in the concept enough to buy a full year up-front, as there is very little chance that it could be honored once the cash dries up. If you want out now, you can go to your Account settings in the app, find Plan & Billing and look for the little Cancel button.