Epic CEO Tim Sweeney Criticizes Google, Accusing Them of Misleading Statements About Microsoft’s Ability to Offer an Xbox Store on Android

In the current landscape post-Windows Phone, Microsoft is finding it tough as it competes with tech giants Apple and Google to get a foothold in mobile computing. Whether it’s the Microsoft Edge browser, the ambitious Microsoft Copilot, or the exciting Xbox Cloud Gaming, both Apple and Google seem intent on blocking Microsoft’s advances in the mobile domain.

Recently, tensions have flared over Android, a platform notoriously challenging for third-party developers. In response, companies such as Microsoft, Epic Games, and Samsung have been eyeing their own app stores to bypass Google’s fees. However, with nearly everyone downloading their apps straight from Google Play, setting up a successful third-party Android app store is daunting, if not impossible. Yet, the effort continues. For instance, Microsoft’s proposed Android app store for Xbox mobile games is currently stalled, awaiting court decisions in the U.S. concerning Google’s policies on app distribution through Android.

On BlueSky yesterday, Sarah Bond shared insights about the stalled project for the Xbox mobile app store on Android. “We at Xbox are eager to give players more options about how and where they play, which includes purchasing games directly from the Xbox app. I’ve outlined our goal to introduce these features first with the Google Play Store on Android devices in the U.S., as we wait for other stores to align with consumer needs,” she explained. Not surprisingly, Google is challenging Microsoft’s moves.

Google has managed to secure time from U.S. courts to prepare their appeal, pushing back Microsoft’s feature launch. Bond commented on this, saying, “The courts’ recent temporary administrative stay has paused our feature launch as planned. We’re ready to activate the new features once the court makes a final decision.”

Google, replying through PureXbox, stated, “Microsoft has always been able to allow Android users to purchase and play Xbox games directly through their app – they simply haven’t pursued this option.” They argued that “the Court’s decision, and the rush to enforce it, could jeopardize Google Play’s secure environment. Microsoft and Epic disregard severe security concerns. Our focus remains on supporting a robust ecosystem that benefits everyone, not just the largest gaming entities.”

CEO of Epic Games, Tim Sweeney, who has been outspoken about Google’s practices, commented on Google’s statement, calling it “deceptive.” He tweeted, “Shame on them. They’re aware that the 30% they demand exceeds all potential profits from game streaming. They know because they spent huge amounts on the failed Stadia game project themselves.”

Yikes, as the younger folks might say. Let’s dissect what’s actually happening here.

—

Tim Sweeney makes a valid point about the misleading nature of Google’s statement. Microsoft and Epic Games are steering away from the Google Play model due to the hefty 30% cut on sales. Platforms like Xbox, PlayStation, and Nintendo take a similar share on their hardware, which is usually sold at cost or with minimal margins to maintain the ecosystem. Apple, on the other hand, charges a premium for its hardware and still takes a developer cut, essentially doubling down.

However, Google doesn’t manufacture much of its hardware, so there isn’t a lot of margin to talk about. Its Pixel phones barely make a dent globally, and their Android Pixel tablets are reportedly discontinued. Google’s revenue largely relies on software and services through Google Play on third-party devices, fueling their vast ad network, which the United States has called a monopoly. Hardware partners must preinstall Google’s apps to access Google Play, creating a stronghold over default app settings, which feeds data to their enormous ad machine.

Developers like Microsoft and Epic Games, frustrated by Google acting as the gatekeeper, find it hard to expand into new ventures like cloud gaming because of Google’s 30% cut on app revenue. Cloud gaming remains unprofitable, and the inability to process in-app purchases via Google Play compounds challenges. Meanwhile, acquiring users without a Google Play presence makes this even tougher for Microsoft.

Even though Google’s practices often draw ire—mine included, having seen its competitive tactics against Windows Phone—it’s somewhat understandable why Google might wish to defend this stance, considering its ad business might face harsh cuts. It could mean losing two major revenue streams for Android.

Meanwhile, Microsoft charges a 30% cut from developers for Xbox games to offset the cost of selling Xbox Series X|S hardware at competitive prices. Microsoft has suggested its future consoles might open up to third-party game stores like Epic and Steam, though that vision remains some distance away. They do take a smaller cut on the Microsoft Store for PC games, about 12%, which stands in contrast to the higher industry standard.

The open platform model of Windows has seemingly served consumers well compared to what Apple’s iOS and Google’s Android offer, especially as Google holds a tight grip over Google Play. Android technically allows for easier side-loading and OEM app store pre-installations, but its strict control over Google Play promotes Google’s interests over others. For instance, Amazon’s Kindle app had to remove in-app purchases, while Google still sells books via Play.

Ultimately, the courts will decide the outcome here. However, all of this might have been avoided if Microsoft had continued nurturing its own mobile platform, like Windows Phone—now that’s the bottom line!

—

🍁 More hot Black Friday deals 🦃 Best Buy: Catch great discounts on games and accessories. Walmart: Get early savings on nearly everything. Target: Enjoy live deals across a wide array of products. Dell: Discover top deals on laptops and gaming PCs. HP: Big savings on laptops, desktops, and accessories. Lenovo: Don’t miss doorbuster deals on PCs and more. Newegg: Save big on gaming accessories and components. Razer: Free shipping for a limited time. Samsung: Big deals on laptops, TVs, phones, and more at Amazon.