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"potential for serious ramifications for Sony, Nintendo and Microsoft and their video game platforms." says Judge on the Epic vs Apple case

Not seen a thread for this

Epic Games’ arguments distinguishing these other platforms as potential economic
substitutes have not been sufficiently tested. First, Epic Games avers that the iOS market is
distinct from other video game platforms because Sony, Nintendo, and Microsoft do not make
much profit, if any, on the sale of the hardware or console—unlike Apple, which allegedly makes
significant profits from the sale of each iPhone. This distinction is without legal precedent under
section 2 of the Sherman Act. Indeed, Sony, Nintendo and Microsoft all operate similar walled
gardens or closed platform models as Apple, whereby the hardware, operating system, digital
marketplace, and IAPs are all exclusive to the platform owner. As such, a final decision should be
better informed regarding the impact of the walled garden model given the potential for significant
and serious ramifications for Sony, Nintendo and Microsoft and their video game platforms.

So yeah

GG Tim

Edit - Source

 
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I don't think it matters how much profit is made on the initial hardware purchase for this case. What is going on is maybe Epic is trying to get a ruling that does not include all walled gardens because that might just be business suicide pissing off MS, Sony and Nintendo.

If they win and force all platforms to go to a lesser percentage you might just get dropped for everything you develop by everyone.
 

Kdad

Member
Microsoft playing both sides of this:


"Windows 10 is an open platform. Unlike some other popular digital platforms, developers are free to choose how they distribute their apps," Microsoft said. "The Microsoft Store is one way... But there are other popular and competitive alternatives on Windows 10."

"It's reasonable to ask why we are not also applying these principles to [the] Xbox store today," Microsoft said. Instead of answering that question outright, however, Microsoft punted to an indeterminate future.

"Game consoles are specialized devices optimized for a particular use. Though well-loved by their fans, they are vastly outnumbered in the marketplace by PCs and phones," Microsoft said, as if that means that developers particularly care about the difference when it comes to that 30 percent cut. Given the "fundamental differences" between the PC and set-top console market, Microsoft said, "we have more work to do to establish the right set of principles for game consoles."

Haha bullshit MS...if your console is fundamentally different...so is the iPhone (the only company making the hardware/software end to end with no exceptions....so the iPhone is just as 'fundamentally different' as the consoles'

For clarity: I agree with Apple/Xbox/Sony/Nin...they created the hardware and software experience and should be able to control that access to their clientele.
 

Kdad

Member
I don't think it matters how much profit is made on the initial hardware purchase for this case. What is going on is maybe Epic is trying to get a ruling that does not include all walled gardens because that might just be business suicide pissing off MS, Sony and Nintendo.

If they win and force all platforms to go to a lesser percentage you might just get dropped for everything you develop by everyone.
Then they'd sue for collusion.
 

ToadMan

Member
It would be amazing if Nintendo, Sony and MS where forced to allow third party stores on their devices but I doubt it will ever happen.

Well let’s analyze that.

Those console exist at their current Price points because they make money from sales.

For context look at MS latest FY earnings.

They were +1bn from 3rd party software and service sales on Xbox compared to the previous year.

Except they were -34% console hardware sales so the result was only a net +189m. Hardware cost MS about 800m.

Hardware is a cost to drive software sales.

Remove the software sales cut, the hardware is gone in the way we know it now.

Probably double the price of the consoles, probably increase the software prices too, and kiss goodbye to the custom hardware - they’ll be mid spec PC boxes.

Maybe some want it to go that way - streaming content being the only way to access games and you’ll have to subscribe to several different services. It’ll end up costing the consumer more than it does now with each store trying to lock you in.
 
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Clear

CliffyB's Cock Holster
Nah, it all boils down to the obvious distinction between general purpose computing devices and those that exist to serve a singular purpose. Its how MS can operate a walled garden on Xbox versus an open platform on Windows.
 

Soodanim

Member
I recently said it in another thread, but I sincerely hope the walled garden stays on consoles. Reason? EA, Ubisoft, Epic, Bethesda, and every other cunt who would happily force people to install shit to play their games. It’s a nuisance on PC, and consoles should be a haven from those practices.
 

Orky

Banned
Microsoft playing both sides of this:




Haha bullshit MS...if your console is fundamentally different...so is the iPhone (the only company making the hardware/software end to end with no exceptions....so the iPhone is just as 'fundamentally different' as the consoles'

No, that’s not the point. Console makers don’t make any profit by selling the hardware itself usually, they only make money by selling subscriptions or licensing fees.
It’s not like iPhone, where apple makes tons of money by selling the iPhone itself.
 

Kdad

Member
Nah, it all boils down to the obvious distinction between general purpose computing devices and those that exist to serve a singular purpose. Its how MS can operate a walled garden on Xbox versus an open platform on Windows.
Thats a very tenuous distinction...consoles now serve as web browsers, music and video streaming from 3rd parties, social media through facebook/twitter integrations etc etc., they are not single purpose If a company builds the software and the hardware they should be able to restrict access imo...regardless of the functionality of the product.
 

Kdad

Member
No, that’s not the point. Console makers don’t make any profit by selling the hardware itself usually, they only make money by selling subscriptions or licensing fees.
It’s not like iPhone, where apple makes tons of money by selling the iPhone itself.
They make 'tons of money' on hardware is a testament to popularity and has zero to do with whether their walled garden is anti competitive. So you think selling hardware at a breakeven or loss is the only reason a walled garden should exist? That makes zero sense.
 

ToadMan

Member
No, that’s not the point. Console makers don’t make any profit by selling the hardware itself usually, they only make money by selling subscriptions or licensing fees.
It’s not like iPhone, where apple makes tons of money by selling the iPhone itself.

And that is a problem for console makers.

No one is forcing them to be in the industry or run their operations and make a loss the way they do.

Nintendo makes a profit on its hardware and software. Focus on quality rather trying to kill competition by racing to bottom of the price barrel.

That MS loses money on hardware is because they aren’t good enough to compete with Apple so they’re trying to gain through litigation what they couldn’t through honest competition. The same for Epic.

That is all that is happening here - MS, Epic, Spotify et al want to change the terms of their deal so they can take more of your money off the back of the work Apple has done over 15 years plus.

This case will get thrown out - the court already agreed Apple could suspend fortnite from their App Store so that is an indication Apple are in the right already.
 

MrS

Banned
I recently said it in another thread, but I sincerely hope the walled garden stays on consoles. Reason? EA, Ubisoft, Epic, Bethesda, and every other cunt who would happily force people to install shit to play their games. It’s a nuisance on PC, and consoles should be a haven from those practices.
4 companies who don't put out any games of importance of worth. There is a very easy solution to this problem: don't play their games.
 

Kdad

Member
O85eGsj.jpg
This isn't EPIC the games company....

Additionally, 1 day returns and a stock price in isolation has zero to do with anything when evaluating a company's value.
 
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Bryank75

Banned
Apple is going to crush Epic in court...

If a company produces hardware, they should have control of what software can go on it.... no matter the source. They have no obligation to allow anyone put any software there and it in fact results in very unsafe due to dangerous software / spyware etc.

The result of this.... Apple and Google can block apps / streaming at will for any reason they see fit. Streaming = dead.
Sony and any TV running on Google will be off limits to most streaming services too.

That is what I think will happen. The various layers of tech are too fractured to make cloud / streaming successful and the only answer any of these companies has to that issue is to fracture the games market more, in which case only the consumer loses.
 
Fuck over the unreal engine as a whole and go back to customized engines. Or make a new specialized cryengine. Time to starve the fortnite beast. I'm tired of Tim and his bullshit. Make another UT game you twats.
 

reinking

Gold Member
Obviously nobody knows how a judge is going to rule but this judge has seen right through Epic's BS and even called them out on in several times in the last hearing. Part of the walled garden statement was pointing out to Epic that walled gardens have existed for 4 decades and she pointed out examples. This judge is very bright and well educated in electronic devices and their digital markets. Epic is not going to be able to confuse this judge with misrepresentations of how these markets work.
 

BeardGawd

Banned
We already have an example of what hardware would look like if it had to be sold at a profit from day one. Welcome to Nintendo's modus operandi.
 

zombrex

Member
Allowing other marketplaces on consoles would not be damaging at all.
Most people would still buy via the official platform holder store and it would help create some much needed competition on price in the digital market place. Right now people are buying digital even when it is massively overpriced compared to retail.

Sony and MS don't pass on any savings to consumers. Digital sales are massively more profitable per unit as there is no production and transport cost and no retailer cut of the sale. Steam has not been hurt by the myriad of key selling websites. The vast majority still buy from the official steam store, even in the sale of exactly identical digital items.
Epic would quickly find most consumers prefer the platform holders payment portal whether it be Apple, Sony or MS. Sadly I don't see them winning they should have planned this out better. We should have competition in the digital space, even on closed platorms.
 
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Kdad

Member
Allowing other marketplaces on consoles would not be damaging at all.
Most people would still buy via the official platform holder store and it would help create some much needed competition on price in the digital market place. Right now people are buying digital even when it is massively overpriced compared to retail.

Sony and MS don't pass on any savings to consumers. Digital sales are massively more profitable per unit as there is no production and transport cost and no retailer cut of the sale. Steam has not been hurt by the myriad of key selling websites. The vast majority still buy from the official steam store, even in the sale of exactly identical digital items.
Epic would quickly find most consumers prefer the platform holders payment portal whether it be Apple, Sony or MS. Sadly I don't see them winning they should have planned this out better. We should have competition in the digital space, even on closed platorms.
You are describing a windows or Linux PC (I'm not including mac as I believe when they go arm they will go walled) or Android platform...you already have this choice.

If you don't appreciate what a closed environment provides you already have open platforms to choose from.
 
And that is a problem for console makers.

No one is forcing them to be in the industry or run their operations and make a loss the way they do.

Nintendo makes a profit on its hardware and software. Focus on quality rather trying to kill competition by racing to bottom of the price barrel.

That MS loses money on hardware is because they aren’t good enough to compete with Apple so they’re trying to gain through litigation what they couldn’t through honest competition. The same for Epic.

That is all that is happening here - MS, Epic, Spotify et al want to change the terms of their deal so they can take more of your money off the back of the work Apple has done over 15 years plus.

This case will get thrown out - the court already agreed Apple could suspend fortnite from their App Store so that is an indication Apple are in the right already.

This doesn’t at all indicate that Apple is in the right. This is a temporary measure granted by the judge pending resolution of the case.

The likes of Microsoft, Match (Tinder, Hinge), Spotify, and Tencent (indirectly through its Epic ownership) are throwing their support behind Epic. Whatever is the outcome, it will be appealed and bounced around appeals courts for months if not years.
 

JimboJones

Member
Well let’s analyze that.

Those console exist at their current Price points because they make money from sales.

For context look at MS latest FY earnings.

They were +1bn from 3rd party software and service sales on Xbox compared to the previous year.

Except they were -34% console hardware sales so the result was only a net +189m. Hardware cost MS about 800m.

Hardware is a cost to drive software sales.

Remove the software sales cut, the hardware is gone in the way we know it now.

Probably double the price of the consoles, probably increase the software prices too, and kiss goodbye to the custom hardware - they’ll be mid spec PC boxes.

Maybe some want it to go that way - streaming content being the only way to access games and you’ll have to subscribe to several different services. It’ll end up costing the consumer more than it does now with each store trying to lock you in.
Sounds hilarious, I'd love for it to happen for the shit show.
 
Remember, Epic is just fighting this battle for their Chinese overlords Tencent. If Epic wins we’ll see even more Chinese tentacles in our markets. But it looks like Apple has a solid case and Epic look a little ridiculous.
 
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GhostOfTsu

Banned
Allowing other marketplaces on consoles would not be damaging at all.
Most people would still buy via the official platform holder store and it would help create some much needed competition on price in the digital market place. Right now people are buying digital even when it is massively overpriced compared to retail.

Sony and MS don't pass on any savings to consumers. Digital sales are massively more profitable per unit as there is no production and transport cost and no retailer cut of the sale. Steam has not been hurt by the myriad of key selling websites. The vast majority still buy from the official steam store, even in the sale of exactly identical digital items.
Epic would quickly find most consumers prefer the platform holders payment portal whether it be Apple, Sony or MS. Sadly I don't see them winning they should have planned this out better. We should have competition in the digital space, even on closed platorms.

Consoles would stop existing without the cut for platform holders. AAA would stop existing too. 3rd party publishers won't have anywhere to sell their games. Thousands of people will lose their jobs, studios closure etc.

How is this good for the customers? More competition lol yeah right. Just so you can get Uplay, Origin, Epic, Steam and Bethesda store on PS5? F that.
 

reksveks

Member
This doesn’t at all indicate that Apple is in the right. This is a temporary measure granted by the judge pending resolution of the case.

The likes of Microsoft, Match (Tinder, Hinge), Spotify, and Tencent (indirectly through its Epic ownership) are throwing their support behind Epic. Whatever is the outcome, it will be appealed and bounced around appeals courts for months if not years.

The court case isn't the final battle, if the democratic pretty wins control of the Senate and Presidency and depending on Warren's position, this shit could get interesting.

If a company produces hardware, they should have control of what software can go on it.... no matter the source. They have no obligation to allow anyone put any software there and it in fact results in very unsafe due to dangerous software / spyware etc.

Google has basically be forced to allow a browser ballot option in the EU. Regulators across the world are looking at this.
 

Bryank75

Banned
The court case isn't the final battle, if the democratic pretty wins control of the Senate and Presidency and depending on Warren's position, this shit could get interesting.



Google has basically be forced to allow a browser ballot option in the EU. Regulators across the world are looking at this.
I still think as long as PlayStation, Xbox and Nintendo offer a physocal option through many game store, they are different to Apple... that is why physical is important for them.
 

InDaGulag

Member
If I buy a computing device of any kind why can't I install whatever application or program on it? It's my personal property.

I understand companies voiding warranties because of tinkering, being able to curate their own stores, and banning hackers using their online network. But straight up blocking side loading is dumb. All platforms should be as open and free as a computer or at least Android phones.
 

Bryank75

Banned
If I buy a computing device of any kind why can't I install whatever application or program on it? It's my personal property.

I understand companies voiding warranties because of tinkering, being able to curate their own stores, and banning hackers using their online network. But straight up blocking side loading is dumb. All platforms should be as open and free as a computer or at least Android phones.
When you buy into PC, you know you are getting an open system....

Why limit people to open and fractured systems when one might prefer an integrated system where all the software is designed to work in a synergistic way?

This is actually limiting choice of ecosystem design. It is limiting tech design and possible future innovation through artificial legislative means.

People would choose a PC and android if they wanted open systems.
 
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I still think as long as PlayStation, Xbox and Nintendo offer a physocal option through many game store, they are different to Apple... that is why physical is important for them.

That is irrelevant though. Apple doesn’t prevent users from signing up to services (like Netflix or Spotify) through other means than an Apple device.

The issue here is about the 30pct cut, and that Apple leverages its position to undermine apps that directly compete with it (eg, Apple Music vs Spotify).

Based on the judge’s comments, it’s clear to me whatever precedent is set with Apple will carry to other walled systems like consoles, whether some here like it or not.
 
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reksveks

Member
The issue here is about the 30pct cut, and that Apple leverages its position to undermine apps that directly compete with it (eg, Apple Music vs Spotify).

The bundling of an app into the os is quite literally the tent pole of the anti-trust investigation into Microsoft in the 90's. I think you seen Apple's small move into allowing users to change default app as a token gift to regulators but I suspect it won't be enough.
 
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