Microsoft Says Apple's 30% Fee Makes Xbox Cloud Gaming iOS App 'Impossible'

Apple has allowed cloud gaming apps on the App Store since earlier this year, but cloud gaming services still haven't bothered making iOS apps. Microsoft recently explained why, telling UK regulators that it didn't bring Xbox Cloud Gaming to Apple's ‌App Store‌ because the rules are still too restrictive.

App Store and XCloud
The UK's Competition and Markets Authority is investigating mobile browsers and cloud gaming, and put out a call for comments. Microsoft responded in late July (via The Verge) and said [PDF] that while cloud gaming apps are technically allowed, there are still multiple rules that cloud gaming apps can't comply with for "technical and economic reasons."

Microsoft's chief complaint is that the ‌App Store‌ rules require subscriptions and features to be made available on iOS devices with in-app purchase, which is "not feasible." A consumption-only situation where content is purchased on another platform and played on iOS is not allowed for cloud gaming apps.

Apple's 30 percent commission fee "makes it impossible" for Microsoft to monetize its cloud gaming service, and it is neither "economically sustainable nor justifiable."

Microsoft also complains about Apple's lack of support for alternative app stores and the limitations of web apps, such as an inability to access device hardware features.

Google also submitted a separate document in the UK, and it simply suggests that regulators focus on the iOS ‌App Store‌ rather than taking a look at Google Play.

Apple's own statement said that it "supports and encourages" cloud gaming services on iOS, and that there are successful cloud gaming services such as Antstream. Apple suggested that regulators revisit their thinking following its support for cloud gaming, which did happen after the investigation launched.

The UK will take Microsoft's comments and comments from other parties into account when making a decision in the ongoing mobile browser and cloud gaming investigation.

Popular Stories

iPhone Pocket Short

iPhone Pocket is Now Completely Sold Out Worldwide

Tuesday November 25, 2025 7:16 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released. iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
New Intel Logo

Apple and Intel Rumored to Partner on Mac Chips Again in a New Way

Friday November 28, 2025 7:33 am PST by
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way. Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027. Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
iphone black friday gold

The Best Black Friday iPhone Deals Still Available

Friday November 28, 2025 6:24 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season. Note: MacRumors is...
apple store down feature

Here's Why the Apple Store is Going Down

Thursday November 27, 2025 1:01 pm PST by
Apple's online store is going down for a few hours on a rolling country-by-country basis right now, but do not get your hopes up for new products. Apple takes its online store down for a few hours ahead of Black Friday every year to tease/prepare for its annual gift card offer with the purchase of select products. The store already went down and came back online in Australia and New Zealand, ...
streaming black friday 2025

Best Black Friday Streaming Deals - Save Big on Apple TV, Disney+, Hulu, and More

Thursday November 27, 2025 1:14 pm PST by
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Apple TV, Disney+, Hulu, Paramount+, Peacock, and more. Note: MacRumors is an affiliate partner with some of these vendors. When...
iphone air camera

iPhone Air Flop Sparks Industry Retreat From Ultra-Thin Phones

Thursday November 27, 2025 3:14 am PST by
Apple's disappointing iPhone Air sales are causing major Chinese mobile vendors to scrap or freeze their own ultra-thin phone projects, according to reports coming out of Asia. Since the ‌iPhone Air‌ launched in September, there have been reports of poor sales and manufacturing cuts, while Apple's supply chain has scaled back shipments and production. Apple supplier Foxconn has...
Cyber Monday Deals 2025

Best Cyber Monday Apple Deals Include Big Discounts on AirPods, Apple Watch, and More

Sunday November 30, 2025 7:33 am PST by
Now that Black Friday is in the rearview mirror, Cyber Monday discounts have begun appearing online, and you can find popular Apple products like AirPods, iPad, Apple Watch, and more at all-time low prices. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may ...
maxresdefault

The MacRumors Show: Apple's Big Plans for iPad Mini 8

Friday November 28, 2025 8:39 am PST by
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8. Subscribe to The MacRumors Show YouTube channel for more videos The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...

Top Rated Comments

Jason2000 Avatar
16 months ago

Apple's rent seeking behavior has to stop.
Apple has become so greedy. Its beginning to turn me off.
Score: 49 Votes (Like | Disagree)
JCCL Avatar
16 months ago

Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Hardly the same as a landlord. They are gatekeeping devices that the customers have fully paid for. We should be able to decide where we want to install software from. You don't want it, fine, I don't really care how you use your device, and you shouldn't care about what I want to do with mine either.
Score: 46 Votes (Like | Disagree)
brofkand Avatar
16 months ago
Apple's rent seeking behavior has to stop.
Score: 39 Votes (Like | Disagree)
Joe The Dragon Avatar
16 months ago

Apple's rent seeking behavior has to stop.
30% when they not hosting or providing the games is way over the top.
Score: 39 Votes (Like | Disagree)
WarmWinterHat Avatar
16 months ago

Dude right....! My Landlord's rent seeking behavior has to stop too..! Who are they to charge me for using the apartment they built and maintain!

Plus, Microsoft's cloud segment had 111.6 billion in revenue for 2023, i think they will be fine...
Im a landlord, and this is nonsense. Your landlord owns the home you're living in. Apple doesn't own my iPhone.

I don't charge the current people who bought the house I built and sold back in 2014.
Score: 32 Votes (Like | Disagree)
acgmph Avatar
16 months ago
[HEADING=1]Revenue Share[/HEADING]
Microsoft takes a 30% cut of game sales and in-app purchases for most developers publishing on Xbox. This means developers keep 70% of the revenue their games generate on the platform.
[HEADING=1]Fee Reduction for Some Developers[/HEADING]
In 2021, Microsoft announced they would reduce their cut to 12% for PC games sold through the Microsoft Store. However, this reduced rate does not apply to Xbox console games.
[HEADING=1]Free-to-Play Games[/HEADING]
Microsoft does take a cut of in-game purchases made through its platforms. Specifically, for games sold on the Microsoft Store, the company takes a 12% cut of the revenue from in-game purchases, which is a reduction from the previous 30% cut that was standard across many platforms. This fee structure aligns Microsoft more closely with the Epic Games Store, which also charges a 12% fee, and is part of a broader strategy to remain competitive in the gaming market, particularly against rivals like Apple and Valve.However, it's important to note that this 12% cut applies specifically to games. For non-game apps, developers can retain 100% of their revenue from in-app purchases unless the app is categorized as a game, indicating a clear distinction in how Microsoft handles revenue sharing between games and other types of applications.
[HEADING=1]Additional Costs[/HEADING]
Besides the revenue share, developers may incur other costs when publishing on Xbox:

* Development kit fees
* Certification and testing fees
* Marketing and promotion costs

[HEADING=1]Comparison to Other Platforms[/HEADING]
Microsoft's 30% cut for Xbox games is in line with industry standards. Other major platforms like PlayStation and Nintendo also typically take a 30% share of game sales revenue.While Microsoft has reduced its fee for PC games, the standard 30% rate remains in place for Xbox console games as of 2024. Developers should factor this revenue split into their financial planning when bringing games to the Xbox platform.
Score: 26 Votes (Like | Disagree)