>> We're in the middle of a big tech Battle Royale. It all started after Epic Games announced
this morning that it was encouraged as yesterday, that is encouraging Fortnite players to bypass
Apple's in house payment system at a 20% discount, so they make Fortnite you can buy it in the
Game currency.
Normally you pay through Apple and they take a cut but Epic wanted to do it themselves
and offer at a cheaper rate, and that's an intentional violation of Apple's App policies.
And in response to that Apple has removed Fortnite from its App Store claiming that
Epic wanted a special arrangement that other developers don't get.
That means that if you've already downloaded fortnight as many people have a quarter of
a billion people have played it, if you've already downloaded your iPhone or iPad, you
can still use it, but it means that Epic won't be able to update the app. And so potentially
a large number of users get could get taken away.
So that was the first volley in this battle royale. The second was that Fortnite also
was then kicked off with the Google Play Store for Android. Nintendo, we're looking at you,
don't make any sudden movements. And so in response to that, Fortnite has put out an
awesome ad, if you've played Fortnite that they've got some good people with the animations
and stuff, so take a look at this ad, see that reminds you of anything where they break
down the situation.
>> Today, we celebrate the anniversary of the platform unification directives, for years,
they have given us their songs, their labor, their dreams. In exchange, we have taken our
tribute, our profits, our control. This power is ours and ours alone. We shall prevail.
>> So that's obviously a reference to the classic Apple ad, I think we have that that
we can put up as B roll as we continue to talk, but Brett, this is back and forth, who
do you see coming out on top of this?
>> I don't know I see Apple coming out on top.
>> Really interesting just because they're the platform holder?
>> Yeah, basically what they're arguing against, as I understand it and correct me if you read
it a different way, is that they're frustrated that Apple is the one who is able to basically
say, listen, I've made this platform where commerce happens and I need to wet my beak.
But instead of just wetting the tip of their beak they're taking like 30% of all the take.
>> Yeah. >> And, this is Fortnite saying, by the way,
I'm the biggest game in town, so why don't you give me most favored nation status at
the very least. And maybe you could also I give them the benefit of the doubt lower the
amount that you're taking from other app developers and other people who are placed on the same
commerce platform.
And they're trying to throw their weight around because, the ability to have the game on the
platforms of Android and iOS came much later than the one they made all their money on
at the beginning, which was PlayStation, Xbox and PC.
>> Thank you for acknowledging that PCs exist cuz I think that's-
>> I'm on one from RTR. >> Yeah we are, yeah so look, some people
are saying they agree to the terms. Yeah, and I get that but they had to, I think they
can challenge at some point. And look the reason I pitched this initially as a big tech
Battle Royale is because look, if you're not interested in Fortnite as the vast majority
of you probably are not, this is still about the ability of companies like Google and Apple
to determine the playing field what they're gonna be paid.
And if you don't pay that, then what you're putting your game on the Windows Phone? Like,
yeah, you kind of have to, it's like Amazon, they become so big, that at some point you
kind of have to go along with it, and again, Epic is not some small little poor indie developer,
they've pulled in billions and billions and billions of dollars, that's what's at stake.
The question is, does Apple by having the platform and allowing Epic to host the game
there and update the game there, do they deserve hundreds of millions of dollars for that?
I guess that's the question at what point, I understand you're gonna take a percentage
because you can't charge some indie new developer $100 million, but should there be some sort
of cap like you didn't make the game, you're not updating the game, you have a platform.
And so these are questions they're gonna have to eventually be worked out in court because
Epic in response to Apple's response says it's filing an antitrust lawsuit against apple
and US District Court. It's also telling its Apple users they won't be able to play future
versions of its game quote because Apple has blocked your ability to update when Fortnite
chapter 2 season 4 releases you will not be able to play the new season iOS.
And they're hoping and it's very clear that ad, that if one platform doesn't have Fortnite,
that could influence consumer behavior not necessarily immediately, but in the future,
it potentially could. It wouldn't affect me because I think playing on mobile is terrible
experience, I don't see why anyone would do that, but I get that some people will.
>> Well, it's bot. >> It's all bots and the issue for that strategy
though, is that now Google has also thrown them off the Play Store for Android, Google
theoretically, could have provided sort of a competitive advantage of themselves by being
the platform that still has Fortnite. But the thing is, they also want control over
the percentage of the in app purchases they're getting.
So, it's just fire going in all directions here.
>> Yeah, this is when you look around and it's great just kick the tires see what's
happening or what it's like? It's like when I guess Indiana Jones like puts in Raiders
he like puts his like a torch stick into the light beam and it immediately gets hit with
a Dart, that's what Fortnite's doing, they're just like boom and it just, all gets hit.
>> Yeah. >> And they're still safe cuz I don't know
what the breakdown is, and then, also like, they do make a lot of, money off of, just
random stuff you can buy but there is a way, I think it's a genius move for them not to
update it, if you're Apple trying to be terrible.
And Google trying to quote be evil, because that's what they're doing you're just blocking
the next season, because Fortnite makes it very easy for you to if you play enough, get
like the cool extras from the game just by playing enough, and leveling up and getting
free v bucks
>> Yeah, it's I mean, it's gonna be interesting to see although I guess we won't it'll be
behind closed doors who is going to really lose more out of this if this stretches to
a week, a month a year. And how does that influence how long will they hold out if hundreds
of millions or billions of dollars are potentially on the line I don't even know what percentage
of the player base is on mobile or makes their purchases on mobile.
Because couldn't you conceivably make the purchases on your PC for instance, and then
use the currency on mobile, it's a complicated world we live in. And the thing is, it's not
like Apple can just be like, well, they already purchased the game so they're not gonna go
purchase it somewhere else, it's free.
So, yeah, a lot of what makes modern gaming and tech what it is, is all being combined
into this battle, and that's why I think that this is an interesting thing to keep an eye
on, even if you don't care at all about Fortnite or gaming at all.
This affects all sorts of apps theoretically. >> I also love that the hashtag, like small
hypocrisies, it's hashtag #FreeFortnite but it's all about how you can pay for Fortnite.
>> Totally, and how they'll make more money when they are making all of the money, yeah,
there's no total good guy here.
Although Fortnite makes the ads that will probably the best in this back and forth,
we'll see if Apple comes out with one. >> I mean it's insane for you to say that
Apple doesn't make iconic ads when the ad that Fortnite made is based on an iconic Apple
ad.
>> Yeah true, and that ad came out like seven years before I was born, I'm just putting
that out there to confuse people. >> That's insane, John.
>> But anyway, yes, it was an iconic ad but what have you done for me lately? They had
some good ads like 15 years ago too, what's been going on lately?
I don't know I don't have TV, I don't watch commercials so
I don't know.