Microsoft Says Apple's 30% Fee Makes Xbox Cloud Gaming iOS App 'Impossible' - MacRumors
Skip to Content

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

surface laptop ultra

Microsoft Launches $2,599 Surface Laptop Ultra to Take on MacBook Pro

Wednesday October 7, 2026 5:45 pm PDT by
Microsoft today announced launch timing and pricing for the Surface Laptop Ultra that it unveiled earlier this year. The 15-inch Surface Laptop Ultra is priced starting at $2,599, undercutting Apple's $2,999 16-inch MacBook Pro, and it targets the same creator and developer market. Microsoft says it is built for "demanding creative, software development, AI, engineering, and 3D workloads." ...
iPhone Duo Slack

Apple Announces iPhone Duo Apps Can Now Be Submitted to App Store

Monday October 5, 2026 7:15 pm PDT by
Apple today announced that apps optimized for the iPhone Duo can now be submitted for App Store approval, ahead of the foldable device launching on Friday, October 23. While existing App Store apps will automatically run on the iPhone Duo, only apps built with the iOS 27.1 SDK or later can dynamically resize to fill the entire space of the inner display, whereas unoptimized apps will have...
Apple Store Wallpaper Basic Apple Guy

Apple Store in UK Reopening on iPhone Duo Launch Day

Friday October 2, 2026 7:17 am PDT by
Following more than three months of renovations, the Apple SouthGate store in Bath, England will be reopening on Friday, October 23, just in time for iPhone Duo launch day. Last year, Apple permanently closed its store in the heart of nearby Bristol, but Apple Cribbs Causeway remains open inside a shopping center on the outskirts of the city. In other UK store news, Apple Lakeside in Essex was ...

Top Rated Comments

Jason2000 Avatar
28 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)
28 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)
28 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)
28 months ago
Apple's rent seeking behavior has to stop.
Score: 39 Votes (Like | Disagree)
WarmWinterHat Avatar
28 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
28 months ago
Revenue Share
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.
Fee Reduction for Some Developers
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.
Free-to-Play Games
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.
Additional Costs
Besides the revenue share, developers may incur other costs when publishing on Xbox:

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

Comparison to Other Platforms
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)
Latest Stories
iPhone Duo Reviewers Really Miss Face ID
iPhone Duo Reviewers Really Miss Face ID
2 hours ago
Does the iPhone Duo Run Hot? Here's What Reviews Found
Does the iPhone Duo Run Hot? Here's What Reviews Found
4 hours ago
Apple Music's New Look is Now Live on Apple's Website
Apple Music's New Look is Now Live on Apple's Website
4 hours ago
Anthropic Launches Claude Duet, a Proactive AI Agent
Anthropic Launches Claude Duet, a Proactive AI Agent
5 hours ago
What 32,000 Folds Did to the iPhone Duo's Hinge
What 32,000 Folds Did to the iPhone Duo's Hinge
6 hours ago
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
7 hours ago
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
8 hours ago
Apple Support App Updated for iPhone Duo's Larger Display
Apple Support App Updated for iPhone Duo's Larger Display
8 hours ago
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
8 hours ago
iPhone Duo Tips Over on MagSafe Stands When Unfolded
iPhone Duo Tips Over on MagSafe Stands When Unfolded
8 hours ago
Apple Music's New Look Officially Announced
Apple Music's New Look Officially Announced
10 hours ago
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
10 hours ago
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
11 hours ago
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
11 hours ago
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
12 hours ago
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
13 hours ago
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
Loop Capital Cuts Apple Rating Over iPhone Sales Outlook
17 hours ago
Apple Stores in Bordeaux and Lille Looted During French Protests
Apple Stores in Bordeaux and Lille Looted During French Protests
17 hours ago
Bluesound Adds Native Apple Music Support
Bluesound Adds Native Apple Music Support
18 hours ago
Apple CEO John Ternus Explains What Makes Good Product Design
Apple CEO John Ternus Explains What Makes Good Product Design
19 hours ago
UK Proposes New Ways to Help Apple Pay Rivals
UK Proposes New Ways to Help Apple Pay Rivals
21 hours ago
WhatsApp Developing In-App Browser for All Chat Links on iPhone
WhatsApp Developing In-App Browser for All Chat Links on iPhone
21 hours ago
Apple's App Store Chief Explains Its Push for Premium Games
Apple's App Store Chief Explains Its Push for Premium Games
22 hours ago
Apple Could Owe Even More After $5.7 Billion Patent Verdict
Apple Could Owe Even More After $5.7 Billion Patent Verdict
22 hours ago
Skyrim Comes to Apple Silicon Macs With New Unofficial Installer
Skyrim Comes to Apple Silicon Macs With New Unofficial Installer
23 hours ago
Apple Highlights Mac and iPad Use in Paris Design Exhibition
Apple Highlights Mac and iPad Use in Paris Design Exhibition
23 hours ago
Apple Seeks 6G Modem Engineers as It Plans for Post-5G iPhones
Apple Seeks 6G Modem Engineers as It Plans for Post-5G iPhones
1 day ago
First iPhone Duo Unboxing Video Appears Ahead of Friday Launch
First iPhone Duo Unboxing Video Appears Ahead of Friday Launch
1 day ago
Perplexity Computer Can Now Run Fully Locally on Mac
Perplexity Computer Can Now Run Fully Locally on Mac
1 day ago
Apple's Touchscreen OLED MacBook Pro: Everything We Know
Apple's Touchscreen OLED MacBook Pro: Everything We Know
1 day ago