Guess who’s making developers use their payment system and taking a 30% cut (hint: not talking about Apple)

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    Posted: 09 March 2012 02:43 AM

    Linked on Drudge:
    Exclusive: Google leans on developers to use payment service

    Google Inc has been pressuring applications and mobile game developers to use its costlier in-house payment service, Google Wallet, as the Internet search giant tries to emulate the financial success of Apple Inc’s iOS platform.

    The initiative is important for Google. While Android Market has been a hit in terms of the number of smartphones using the platform, there has not been a commensurate increase in purchase activity by users.

    In early 2011, Android platform manager Eric Chu told a conference that while the number of Android smartphone users was surging, the number of purchases of paid apps in the Android Market was not doing nearly as well, Forbes reported.

    Ha ha, no shit, when the people who are buying your phones are either 1) cheap and want once cent phones or 2) geeks who think software should be free, good luck selling them software!

    Interesting aside, after two straight days of negative Apple stories, I flamed Drudge in an e-mail to “knock off the bullshit Matt, Apple is one of the few good things in America right now, you sound like Obama, hating on success.”

    Within hours, the Apple stories were gone, and the Google story was linked. Coincidence?

    [ Edited: 09 March 2012 02:47 AM by JDSoCal ]

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  • Posted: 09 March 2012 02:18 PM #1

    Not a coincidence is my guess.  You are a pro when it comes to flaming.  Well done.

         
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    Posted: 09 March 2012 07:47 PM #2

    On a related topic, all is not well in Android App Development Land.

    http://mikamobile.blogspot.com/2012/03/our-future-with-android.html

    Key Paragraph:

    _________________


    We could re-engineer how Battleheart accesses its data to work with this new system.  This isn’t an impossible task, but it doesn’t make a lot of sense to dedicate resources to it.  For one, we’re in the middle of production on another game, and can’t simply drop everything to implement this because Google finally delivered on a year-old promise.  And secondly, as I mentioned on Twitter, our Android apps aren’t making money.  A few people took offense to the bluntness of this statement, so I’ll clarify in more delicate terms.  There’s a big difference between generating revenue, and “making money” - It’s not that they haven’t generated income, but that income is offset by the additional support costs the platform has demanded.  Where did your dollar go?  We spent about 20% of our total man-hours last year dealing with Android in one way or another - porting, platform specific bug fixes, customer service, etc.  I would have preferred spending that time on more content for you, but instead I was thanklessly modifying shaders and texture formats to work on different GPUs, or pushing out patches to support new devices without crashing, or walking someone through how to fix an installation that wouldn’t go through.  We spent thousands on various test hardware.  These are the unsung necessities of offering our apps on Android.  Meanwhile, Android sales amounted to around 5% of our revenue for the year, and continues to shrink.  Needless to say, this ratio is unsustainable.

    From a purely economic perspective, I can no longer legitimize spending time on Android apps, and the new features of the market do nothing to change this.  While this news may be disappointing, I hope people can accept that we’ve done everything we can reasonably do to bring our apps to as many potential players as possible, despite the obstacles.

    [ Edited: 09 March 2012 07:50 PM by Red Shirted Ensign ]

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    Posted: 09 March 2012 08:21 PM #3

    Thanks for the link, Ensign.  The luster seems to be fading fast for Android as an actual smartphone platform.  However, as the OS of choice for crappy plastic B-grade phones, it’s doin’ great!  850 ka-jillion/day…

         
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    Posted: 09 March 2012 08:44 PM #4

    Red Shirted Ensign - 09 March 2012 11:47 PM

    On a related topic, all is not well in Android App Development Land.

    http://mikamobile.blogspot.com/2012/03/our-future-with-android.html

    Great link, thanks Red! This is huge. I’d never seen such stark numbers before on Android development, the 4-1 work-to-revenue ratio. It hadn’t occurred to me how fragmentation was so much more than just screen size - of course there is different hardware - even different GPUs! It’s like programming an app for Windows and OS X, but only being paid for a Linux market share.

    How ironic that all the open-source “software should be free” geeks who give Apple a hard time about their 30% cut in the App Store - while Apple has paid out billions to developers - when it’s the open source geeks themselves (plus the cheapos who want one-cent phones) who are the problem - they simply won’t pay for software.

    “25% of something big is better than 100% of nothing.” - Eddie Felson, The Hustler.

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    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
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    Posted: 09 March 2012 08:56 PM #5

    Red Shirted Ensign - 09 March 2012 11:47 PM

    On a related topic, all is not well in Android App Development Land.

    http://mikamobile.blogspot.com/2012/03/our-future-with-android.html

    Key Paragraph:

    _________________


    We could re-engineer how Battleheart accesses its data to work with this new system.  This isn’t an impossible task, but it doesn’t make a lot of sense to dedicate resources to it.  For one, we’re in the middle of production on another game, and can’t simply drop everything to implement this because Google finally delivered on a year-old promise.  And secondly, as I mentioned on Twitter, our Android apps aren’t making money.  A few people took offense to the bluntness of this statement, so I’ll clarify in more delicate terms.  There’s a big difference between generating revenue, and “making money” - It’s not that they haven’t generated income, but that income is offset by the additional support costs the platform has demanded.  Where did your dollar go?  We spent about 20% of our total man-hours last year dealing with Android in one way or another - porting, platform specific bug fixes, customer service, etc.  I would have preferred spending that time on more content for you, but instead I was thanklessly modifying shaders and texture formats to work on different GPUs, or pushing out patches to support new devices without crashing, or walking someone through how to fix an installation that wouldn’t go through.  We spent thousands on various test hardware.  These are the unsung necessities of offering our apps on Android.  Meanwhile, Android sales amounted to around 5% of our revenue for the year, and continues to shrink.  Needless to say, this ratio is unsustainable.

    From a purely economic perspective, I can no longer legitimize spending time on Android apps, and the new features of the market do nothing to change this.  While this news may be disappointing, I hope people can accept that we’ve done everything we can reasonably do to bring our apps to as many potential players as possible, despite the obstacles.

    Just one sample, but that sample speaks loud and clear.  There’s a reason why that billions of dollars paid to iOS devs counter rolls over faster and faster.

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    Posted: 11 March 2012 08:18 PM #6

    Red Shirted Ensign - 09 March 2012 11:47 PM

    On a related topic, all is not well in Android App Development Land.

    http://mikamobile.blogspot.com/2012/03/our-future-with-android.html

    Slashdot picked up the story, and reading the comments, the Android fanboys are in a tizzy. They want to deny reality like Greek workers.

    I didn’t know that Carmack of Id and Epic both had issues with Android fragmentation as well.

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    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
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    Posted: 11 March 2012 09:22 PM #7

    We could use some of Bosco’s insight here.  smile

         
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    Posted: 11 March 2012 11:05 PM #8

    madmaxroi - 12 March 2012 12:22 AM

    We could use some of Bosco’s insight here.  smile

    It is interesting how some AFB members only come around when things look bad. In other words, a rising tide lifts all ships.

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    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007