Why Epic's Fight With Apple Matters for the Future of the Metaverse

In Apple’s view, only the Apple metaverse would be allowed. And that’s what I fear the most here: that Apple is looking ahead to AR and thinking of the absolute power it can wield over the world if they can get away with repeating the App Store payments fiasco in the real world.

— Tim Sweeney (@TimSweeneyEpic) August 8, 2020

With news that Apple is not only banning Epic's Fortnite from its App Store, but also planning to cut Epic off from iOS and Mac development tools (which would effectively hurt every developer using Epic's Unreal engine), it's worth reading this analogy from reader "Seph":

If Microsoft only allowed programs to be downloaded via Windows Store, took 30% cut of any program sales and another 30% cut of all in-app transactions as well, what would Second Life's viability be like? How healthy would Second Life's economy be if either Linden Lab absorbed a 30% hit every time L$ was purchased, or L$ was made 30% more expensive for the customer to cover Apple's cut?

The IAP cut aside, would Second Life even be allowed given it has a marketplace? Tons of user-created content that Apple doesn't get to review individually? At what level would Apple want to review; entire regions or individual products?

All 10 counts in Epic's legal documents are very relevant to products like Second Life and show how stifling Apple's ecosystem is vs. Windows.

Sweeney is very correct. That he stands to gain personally from the lawsuit doesn't make him any less correct. That this was obvious pre-planned baiting doesn't make him any less correct. Right now it's impossible to have a fully functioning Second Life on iOS, and Second Life is still the best example of a metaverse.

I think that last point is debatable but it is definitely the case that metaverse-like platforms in mobile app stores with user-generated content -- ROBLOX and IMVU come to mind -- have to contend with paying a 30% cut that both Apple and Google Play both charge. I'm curious how both companies contend with Apple's review process for user-made content, but I'm definitely sure it would be way more taxing for a much more open platform like Second Life. (And is probably a key reason why Linden Lab has been so reluctant to create a mobile app for SL.)

But why the focus on just mobile apps, when platforms like Steam and Xbox also take 30%? Seph answers:

Unlike the iPhone, there aren't 1-1.5 billion Xbox users. The Xbox also isn't as general purpose and every industry spanning as iPhone. The Xbox also isn't in our pocket everywhere we go.

Even if the scope was limited to just the living room and just gaming, the Xbox isn't even winning let alone dominating at a level arguably monopoly-like.

Smartphones being a thing that billions of people use to primarily conduct business along with Apple and Google sharing near 100% control of it with varying degrees of anti-trust practices is the collective problem. The Xbox isn't a good comparison.

One response to all this is saying, "Epic is just trying to make more money". But I'm skeptical of that. If all Epic cared about was Fortnite’s profit margin, Sweeney could have quietly negotiated with Apple for a better split, like some select apps get.

In any case, however profit-oriented Sweeney's move is, what remains true is this battle will shape the future of the metaverse -- and who owns it.

Comments

[Alicia]

Here's the problem with Apple.

They deliberately, and purposely degrade whichever products are out so they can get their consumers to the Apple Stores to buy the latest models. Rinse, wash and repeat. It's known as the the lemming system, ala blind leading the blind.

Yes, people do work on Macs, but those same exact programs that people use on Macs are also being used on Windows PCs. Not only that, but if your Apple product breaks, you're almost certain to have to scramble to a certified Apple technician who can put your iPad, iPhone or Mac back together. Just because Apple products have the only advantage of not having viruses, due to how they handle their list of people who pay to be able to create apps for them, doesn't necessarily mean that Apple products are better. Hell, they're actually inferior to anything Windows-based as it's easier to upgrade or buy a new Windows-based machine than it will ever be to do the same for a Mac.

As it pertains to Fortnite, this will bite Apple in the butt in more ways than one. You can play Fortnite on what... seven different platforms now that Apple is blocking it? As it pertains to MMOs and other games... this is the very reason why most game developers hate developing anything for Apple products.

As to Linden Lab being reluctant on getting out a mobile app for SL. My advice? Don't bother. The reasons are way too obvious and the ensuing problems that will come about from it are just too much to overcome. They would literally have to it into a basic, messaging app. Tablets and mobile phones can't handle it for obvious reasons, and the way they're going, SL will become a bottlenecking nightmare regardless of the cloud, ones own connection as the engine will still show latency in the yellow and red areas, and also very dependent on how old the person's machine is. Let's face facts folks, LL will never tell creators to optimize the mesh they create, so once they're officially on the cloud... there goes the servers as people will assume they can go hog wild and bring in ungodly non-optimized mesh with vertices that will possibly make SL itself unplayable for literally anyone with PCs five years or older.

[JUDAS]

Apple customers place style above cost ,the fashion hungry users of second life will happily pay for the best.. I don’t see a problem.

[Jumpman Lane]

@JUDAS amen. Plus Apple's products WORK-that is to say they do what they are advertised to do, EVERY iteration, EVERY generation. Epic should just shut up and pay.

Now , I don't play Fortnite. I do keep an eye one it because I follow SypherPk's stream. (Sypher is a GIFTED gamer and entertaining streamer). Epic more than can afford it. Apple's policy is not new. Epic is just greedy. Epic has no empathy for any entire class of gamer that has lost access to their game due to their money grab.

Epic is trying to spin this money grab as a WAR against monopolistic practices? Hmmmm. I hope Apple wins!

[Joey1058]

OMG. All you people that still think this is just a money grab have your heads buried in the sand.

Yes, Apple's products work, because they maintain ruthless control over every phase of product development. That's a good thing, don't get me wrong. I'm often times envious of my wife, who owns both and iPad and an iPod Touch. I've owned a Touch and Pad myself in years past. But what I don't care for is that Apple needs to control exactly how you use the items. To the point that they will not use agreed upon industry standards that they can't control.

Have I repeated the word CONTROL enough times yet?

I have little love for corporate shenanigans. But when you have a company like Epic, willing to play David to Apple's Goliath, and you understand EXACTLY what is at stake for the future of the internet, I'm going to side with Epic.

I would seriously encourage you people to do some research into internet structure. Look into governing body standards. Find out about XML, and what it means to be the foundation of the World Wide Web.

Or Apple will own the web. And dismantle it.

[Alicia]

@Jumpman Lane and @JUDAS, Apple has always been about style, money and control. No one thought that Fortnite would be this popular, but guess what... it is. Now, Apple wants some of that action and Epic knows full well that's what Apple wants. They want to stifle the entire metaverse. Where is Epic Games being greedy in all of this when all they want is to open up their game to as many platforms as possibly can to literally open up the metaverse? If Apple wins, you can literally kiss the metaverse goodbye.

@Joey1058, thank you! You spelled it out for them!

[Jumpman Lane]

I for one am happy that Steve Job's ideas concerning CLOSED systems still is a part of Apple's corporate culture. it gives me hope for the future of their products.

Epic is engaged in a money grab. If they had such a problem with Apple's policies they could have simply left the Apple Store instead of coding around it. They wanted to continue using the Apple store without paying for it.

Apple's app policy isn't new. Epic, most particularly Fortnite, has never been all that CONCERNED abuot it's player base. Apple booting Epic off of their platform is not a WAR for the metaverse. It is the valid response to an app maker violating the terms of an agreement.