Apple + SkyDrive = Micrsoft + Steam
An interesting parallel has emerged in an unlikely place. I'm not sure if it is rumour or truth, but it sounds like there is enough truth to it. The story is that Microsoft hasn't updated SkyDrive on iOS because Apple wants 30% of the revenue from the upgrade in storage if Microsoft allows this to be done via the SkyDrive iOS App. Rings of truth because this does line up with Apple's app store requirements, and a 30% gash in what is a competitively priced online storage option could be devastating to that revenue model.
What's funny here is that this is a very good parallel to one of the reasons Blizzard and Valve don't like the Microsoft Store in Windows 8. In both cases you have companies with established business models. And when someone tries to take an extra 30% either it leaves a sour taste in your mouth. Not to mention it takes control of your distribution network away from you.
Now, it is true that it isn't a perfect parallel. Microsoft does allow apps to have external licensing and registration where Microsoft doesn't get it hands on a chunk of the change. But the parallel goes far enough, I think, to be valid. In both cases, SkyDrive on iOS and Steam/Blizzard games going through the Windows Store the problem you hit is taking an existing revenue model to a place where some of that revenue is garnished and controlled by a 3rd party.
I doubt any such thing will come of this. But I hope Microsoft acknowledges this parallel and takes moves to remedy this very real problem. As I've argued in the past, the way Windows 8 is today, I think Valve and Blizzard are simply whining about a future which hasn't happened yet. Neither really have ARM games, so they aren't missing out on a proven, untapped market in Windows RT devices, they can still sell x86 apps the way they always have... and ARM devices don't have the power to play most of those titles anyway.
But expect that to change. The power of ARM devices will eventually exceed even the top systems today. We may be years away from that. But it will happen. Even without that happening, both companies are undoubtedly feeling pressure to make mobile games and may eventually buckle. And before we get to either of those points there will be a rise in the number of Windows RT and other ARM devices, and likely a bigger shift from Microsoft towards software which runs on in the new UI. By that time (or ideally long before), Microsoft had better have an answer to these issues. Restricting what runs on ARM due to performance and battery concerns is only a valid complaint as long as ARM and battery performance remain at current levels and that won't last forever.
Also, it doesn't look good that people have already circumvented the trial app model. I think that might be the point which breaks Microsoft in the end. They will likely get berated for strong arming companies into an improperly secured eco-system. They may even see lawsuits over lost funds.
What's funny here is that this is a very good parallel to one of the reasons Blizzard and Valve don't like the Microsoft Store in Windows 8. In both cases you have companies with established business models. And when someone tries to take an extra 30% either it leaves a sour taste in your mouth. Not to mention it takes control of your distribution network away from you.
Now, it is true that it isn't a perfect parallel. Microsoft does allow apps to have external licensing and registration where Microsoft doesn't get it hands on a chunk of the change. But the parallel goes far enough, I think, to be valid. In both cases, SkyDrive on iOS and Steam/Blizzard games going through the Windows Store the problem you hit is taking an existing revenue model to a place where some of that revenue is garnished and controlled by a 3rd party.
I doubt any such thing will come of this. But I hope Microsoft acknowledges this parallel and takes moves to remedy this very real problem. As I've argued in the past, the way Windows 8 is today, I think Valve and Blizzard are simply whining about a future which hasn't happened yet. Neither really have ARM games, so they aren't missing out on a proven, untapped market in Windows RT devices, they can still sell x86 apps the way they always have... and ARM devices don't have the power to play most of those titles anyway.
But expect that to change. The power of ARM devices will eventually exceed even the top systems today. We may be years away from that. But it will happen. Even without that happening, both companies are undoubtedly feeling pressure to make mobile games and may eventually buckle. And before we get to either of those points there will be a rise in the number of Windows RT and other ARM devices, and likely a bigger shift from Microsoft towards software which runs on in the new UI. By that time (or ideally long before), Microsoft had better have an answer to these issues. Restricting what runs on ARM due to performance and battery concerns is only a valid complaint as long as ARM and battery performance remain at current levels and that won't last forever.
Also, it doesn't look good that people have already circumvented the trial app model. I think that might be the point which breaks Microsoft in the end. They will likely get berated for strong arming companies into an improperly secured eco-system. They may even see lawsuits over lost funds.
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