iPhone users might not get Xbox Cloud Gaming thanks to Apple's policies

Microsoft has expressed hesitation about bringing Xbox Cloud Gaming to iOS devices, despite Apple’s recent policy changes that seemingly pave the way for such services. The core issue lies in Apple’s limitations on monetizing cloud gaming services on iPhones and iPads.

While Apple announced last month that cloud gaming could be offered through web apps, Microsoft believes this approach doesn’t provide enough flexibility for proper monetization. The company’s concerns stem from their experience with offering Game Pass through this method, where the lack of in-app purchases and subscriptions made it difficult to recoup costs.

Microsoft CEO of Gaming, Phil Spencer, criticized Apple’s implementation, stating that it doesn’t go far enough in opening up the iOS platform for third-party options. He envisions a mobile gaming experience similar to PC, where players can purchase games from various storefronts like Steam, Epic Games, and the Microsoft Store.

Under the current limitations, users couldn’t make in-app purchases or subscriptions within the Xbox Cloud Gaming app on iOS, similar to how it functions on Android. This significantly restricts how Microsoft can offer its service and potentially reach iOS users.

Furthermore, Apple’s requirement of a 30% cut from all transactions on third-party stores within the EU, as mandated by the Digital Markets Act, adds another layer of discouragement for Microsoft. This policy has been criticized by developers like Spotify and Epic Games for being anti-competitive.

Given these limitations, it’s understandable why Microsoft hesitates to bring Xbox Cloud Gaming to iOS despite the rule change. The company is seeking a more open platform that allows for greater flexibility in monetization and user experience, something that Apple’s current App Store model doesn’t seem to offer.

Whether Microsoft will eventually change its stance and bring Xbox Cloud Gaming to iOS remains to be seen. The company’s position highlights the ongoing debate around app store policies and the delicate balance between maintaining a secure platform and fostering competition within the mobile gaming industry.