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For Mac Developers, Armageddon Comes Tomorrow
kdawson writes "David Gewirtz's blog post over at ZDNet warns of an imminent price collapse for traditional Mac applications, starting tomorrow when the Mac App Store opens. The larger questions: what will Mac price plunges of 90%-95% mean for the PC software market? For the Mac's market share? Quoting: 'The Mac software market is about as old-school as you get. Developers have been creating, shipping, and selling products through traditional channels and at traditional price points for decades. ... Mac software has historically been priced on a parity with other desktop software. That means small products are about $20. Utilities run in the $50-60 range. Games in the $50 range. Productivity packages and creative tools in the hundreds, and specialty software — well, the sky's the limit. Tomorrow, the sky will fall. Tomorrow, the iOS developers move in and the traditional Mac developers better stick their heads between their legs and kiss those price points goodbye.'"
The news for the traditional developers is not good:
These are all games and one did have a price difference between iOS and Mac, but it was a buck.
Compare that with Mac games listed on Amazon today. $38.99 $19.99 $27.54 $29.35 $54.99 $24.38. These are traditional PC prices.
As of tomorrow, games priced at $20-60 will be competing against games priced at 99 cents to $4.99. The most expensive iOS games are around ten bucks. In effect, game pricing will drop by 90-95% -- on average -- overnight.
Question: Why didn't you list out those titles that you found at $20-$55 like you did with the iPhone titles? Oh, I know, it's because they're so far from similar it would be embarrassing to reveal that the heart of your argument is on shaky ground at best.
I don't own a Mac. I don't own an iPhone. But I've seen people play games on both. From your suggestion of Amazon's bestselling Mac game titles let's look at the top page without duplicates: The Sims 3, Bejeweled 3, World of Warcraft, Civilization V, Nancy Drew, and Spore. With the exception of Bejeweled (and the other Pop Cap titles), I think you are comparing apples to oranges when you say that World of Warcraft is now going to have to compete with Air Hockey and that Blizzard should tuck its tail between its legs and run because the $40 price point versus $1 price point means they're going to die. And in the only applicable case (Pop Cap Games), they will be the ones moving their apps to the Mac Store. So they should be afraid of themselves?
Here's how I see it: gaming on Mac has always been sort of unsupported. It's gotten a lot better recently but not all publishers see a value to it. Now, with this Mac Store, you're going to see the same publishers sell at their price point but gaming could explode on the Mac given this opportunity to transcend iOS and target OSX as well. I don't think that the applications and games that exist in the iPhone sphere are going to do much to the revenues of desktop counterparts because they're simply beefier applications. Furthermore, if they do modify those price points to compete, I'm of the opinion that the Steam Effect will take place and instead of selling 10k copies at $20 they're going to sell 100k copies at $4. The bottom line is that this software store will do little to traditional Mac sales and instead expand the subscriptions of the mobile games a bit.
Your friends are also going to have to figure out how the input on a mac with a single mouse is going to handle those times when they were sensing two or more touch points on the device screen. So even if you're right, Armageddon is not tomorrow.
Apple wins. Many of their very loyal developers will lose.
The Rapture is upon us, repent now before it is too late. Steve Jobs is a ruthless and uncaring god! Seriously man, you're blowing this up into something it's not.
My work here is dung.
Comparing some $2 iPhone/iPad game and a full-blown Mac game like The Sims 3 or World or Warcraft, as if there is parity just because they're both "games," is fucking retarded. These are "apps" not "applications."
Some young hotshit programmer designing a great little mini-game isn't going to drive down the price of Call of Duty 4, for Christ's sake.
Some start-up's simple photo editor isn't going to drive down the price of Photoshop (anymore than GIMP or any of a hundred other free photo editors did on the PC).
Serious development still costs money. And the more complex your application, the more you generally have to charge for it. What sells on the iPhone/iPad for a few bucks will probably sell for a few bucks on the Mac too. But no one is going to look at these little apps as replacements for more serious software (the kind that costs $20+). Apple isn't going to look at some iVideoEdit app and say "Well, we'd better lower the price of Final Cut Pro down to $5."
SJW: Someone who has run out of real oppression, and has to fake it.
You don't have to use the App Store to sell software.
I don't imagine for one minute that large professional applications will ever be sold this way for the time being.
What a terrible article. Does he interview any actual developers? Does he talk to software resellers? Does he talk to iPhone developers considering the move to the app store? Does he have any statistics at all? No, he did his research by looking at Amazon and MacConnection. He came up with a whole bunch of scary sounding analogies, though - I guess that should drive traffic to his site.
I think that, in the short term, the App store is going to compete with the traditional shareware market, which has always been pretty active in the Macintosh community. The solution for those developers is simple: make their products available on the app store. It will probably help them in the long run.
My Other Computer Is A Data General Nova III.
Some start-up's simple photo editor isn't going to drive down the price of Photoshop (anymore than GIMP or any of a hundred other free photo editors did on the PC).
Without NeoPaint, Paint Shop Pro, GIMP, and other second-string image editors, Adobe likely wouldn't have made Photoshop Elements. Likewise, startups trying to compete with Final Cut Pro (to take your example) may encourage Apple to add features to iMovie.
What precisely do you mean by open systems in this context? If you mean ability to install/run any executable you want, they have a track record of more than 25 years of that on Mac systems. That's certainly a good track record.
They don't allow it on phones because malware is a far bigger threat on phones than on PCs.
Now think! If Apple created a version of OSX where you could no longer install software that wasn't available from the App Store, then most of their customers would not upgrade to it, because their existing off the shelf apps would no longer be installable. It'd have an adoption rate even lower than Vista. So why the fuck would Apple do it?
Apple think things through better than you do.