Microsoft Delays Xbox Cloud Gaming on iOS, Citing Monetization Issue
Microsoft has announced that it will not be bringing Xbox Cloud Gaming to iOS devices anytime soon due to a lack of monetization opportunities. Despite recent changes in Apple's App Store guidelines, which seemed to pave the way for cloud gaming services on iOS, Microsoft believes that these adjustments are not sufficient to generate revenue effectively on Apple devices.
CEO Phil Spencer of Microsoft Gaming expressed disappointment with Apple's approach, stating that it falls short in providing a third-party gaming experience comparable to what is available on PCs. On PCs, users can purchase games from a variety of stores, making it a more favorable environment.
According to Microsoft, the current rules of the App Store are not supportive of the cloud gaming model as they do not allow for in-app subscriptions or purchases, which are critical for the service's monetization strategy. This limitation has prompted Microsoft to hold off on introducing an official Xbox Cloud Gaming app for iOS, despite the seemingly improved regulatory environment.
In addition, Apple's requirement of a 30% commission on all transactions through third-party stores in the European Union (EU) has faced criticism from various developers who view it as anti-competitive.
Analyst comment
Neutral news: Microsoft will not bring Xbox Cloud Gaming to iOS due to a lack of proper monetization options. This decision stems from dissatisfaction with Apple’s approach and App Store rules that do not support the cloud gaming model. The market impact is limited as users can still access cloud gaming on other platforms.
