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Game Developer Group Warns Against Amazon Appstore

Posted by Soulskill on from the money-vs-control dept.

The International Game Developers Association has posted a warning to the game development community about the Amazon Appstore's distribution terms, detailing several unfavorable situations possible under the rules and saying, "Amazon has little incentive not to use a developer's content as a weapon with which to capture marketshare from competing app stores." "Amazon does not need the terms it has established for itself in order to give away a free app every day. Nor does it need the powers it has granted itself to execute a wide variety of price promotions. Other digital games platforms, such as Xbox LIVE Arcade and Steam, manage to run effective promotions very frequently without employing these terms. Amazon may further argue that its success depends on the success of its development partners, and therefore, that it would never abuse the terms of its distribution agreement. Given that Amazon can (and currently does) function perfectly well without these terms in other markets, it is unclear why game developers should take a leap of faith on Amazon’s behalf. Such leaps are rarely rewarded once a retailer achieves dominance."

13 of 142 comments (clear)

  1. Competition by pablo_max · · Score: 3, Insightful

    Here is the big difference with Android and Apple. Competition. There are other stores you can sell your crap in when you dont like the terms of one.

    1. Re:Competition by clang_jangle · · Score: 3, Insightful

      Come to think of it, it's far worse than that. Most people won't even have the sense to worry about the code being what it claims to be, so the default state of a non-geek owned android device will be pwned.

      --
      Caveat Utilitor
  2. Hold up a sec.... by Anonymous Coward · · Score: 4, Interesting

    "Amazon has little incentive not to use a developer's content as a weapon with which to capture market share from competing app stores."

    I'm no Donald Trump but isn't that what business is? Battling competitors for market share? Sounds to me like that union is afraid of its impending irrelevance.

    1. Re:Hold up a sec.... by Anonymous Coward · · Score: 2, Insightful

      Of course we all get it. But the point here is that Amazon can use it as a weapon on game developers expense. Imagine if they suddenly start giving away tons of free games and just do whatever it takes to customers leave their old stores and start using Amazon's.. I'm all fine for Amazon trying to capture market share as much as possible, but not on developers expense like that.

    2. Re:Hold up a sec.... by Anonymous Coward · · Score: 2, Informative

      Instead of wading through the Dev License you could always RTFA. Amazon can charge whatever they want, but they have to pay the dev the greater of 20% of the list price or 70% of the purchase price. So if you list your game at $5 and Amazon gives it away for free, you get 20% of list or $1. If they sell it for $5, then you get 70% of purchase or $3.50. It's not wholly unreasonable, and nothing is forcing you to sell through them. The fact of the matter is you have to make compromises if you want to sell anything on Amazon. They have huge distribution, so they can force manufacturers to give them huge discounts, which is how they're so successful. Or did you think that Amazon payed full price for the surround sound system you bought from them at a 25% discount over everyone else, and they just give you the great deal out of the goodness of their heart.

  3. Resistance is futile by pmontra · · Score: 3, Insightful

    The problem is that somebody will be lured by Amazon brand, their shop will become big and drive prices down toward zero. Economics always win and this is probably a necessary consequence of the very nature of computer programs. I explain:

    1. We know that software can be copied at almost no cost, just like digitalized music, books and movies.
    2. We also know that digitalization made music prices plummet and that artists are looking for new business models (maybe they should learn from their grand-grandparents 100+ years ago, before recorded music).
    3. That's going to happen to books and movies (majors are trying to save themselves with 3D and other stuff difficult to reproduce at home).
    4. It is only natural that it happens to computer programs.

    We should prepare for a world where our products will be exchanged for free or a price near to zero. So how are we going to pay our bills? The only answers for most of us is custom software development. Luckily this is what I did for the last 18 years so I'm in a good position. You're also in a good position for some time if you sell Photoshop or Excel, but they have already lowly priced competitors that are good for many people. Even Windows will suffer: people will progressively move from the desktop to the mobile and desktop OSes will share the same fate with mainframe OSes, still alive but interesting only for some professionals (and the day will come that even Apple will stop tying its phones to a desktop OS) .

    1. Re:Resistance is futile by poetmatt · · Score: 3, Insightful

      Is this supposed to be a problem though? I don't really see it as one, honestly.

      It's called: here is your market, you make money this way -> X

      and then becomes: your market has changed, your old way of making money is now free, find a new way.

      nothing really problematic, that's just a market shift.

    2. Re:Resistance is futile by xednieht · · Score: 2

      "We should prepare for a world where our products will be exchanged for free" - Really??? how bout giving me your car now to get this model started.

      --

      Hope is the currency of fools
  4. do what PC makers do at Sam's Club by wren337 · · Score: 4, Interesting

    At best buy or sam's club you'll find a PC with a distinct model number - the manufacturer produces it just for that chain. Makes price matching more difficult and lets the chains show lower prices etc.

    So you make an Amazon version of your game with a different name. Maybe "Game Lite" or something similar enough to the normal name to ensure your people can find you, but different enough that you can legitimately say it's not the same game. Maybe leave out some levels or change backgrounds. Now you can set whatever list price you want - this game has never been offered before.

    Bonus - your core audience will buy this one to, so they have every version.

  5. Not available outside the US by thegarbz · · Score: 4, Interesting

    I wonder why developers bother with Amazon at all. Their app store is incredibly limited by their stupid policies. Angry Birds Rio was an exclusive release on the Amazon app store, and given away for free. .... But doesn't work outside the US. End result is that despite the game was being given away, and the previous version was available add supported, Android forums were full of questions relating to piracy of the game.

    It's fucking 2011. Angry Birds Rio is not some kind military weapon, it doesn't use encryption that will breach US export laws. Amazon why will you send me practically anything but not offer me a digital download?

    On top of that you know my address from my account, why did you let me waste 20min downloading your stupid appstore app, then force me to setup a one click account for something you're giving away for free before giving me an error saying the store is available in the US only?

    Amazon I extend my middle finger to you, and to those developers who will use Amazon I look forward to finding your apps on bit-torrent if you don't offer a download or an alternative app store.

    1. Re:Not available outside the US by getNewNickName · · Score: 3, Insightful

      Amazon wants to trumpet download numbers for their appstore app for some press release, so they let foreign users download the app whether or not they can actually access any content.

  6. Re:Basic business understanding failure by circusboy · · Score: 3, Informative

    But at least at iTunes, each developer is the one mucking with the price, for their own benefit/loss/risk. The amazon method is to muck with the price of the product whether or not the developer wants them too, primarily for amazon's benefit/loss/risk.

    --
    -- it's ridiculous how many people misspell ridiculous... (damn, damn, damn...)
  7. Re:Basic business understanding failure by MMORG · · Score: 4, Insightful

    All that has to happen is a developer doesn't give away the game and this never happens. I don't see the problem here at all. I should also mention that I have noticed huge numbers of apps that go on sale at a discount when first released then a few weeks later the price goes up. So I'm not sure I even see their point here at all when it seems this is an industry standard.

    I think you didn't read the article carefully enough. The point is that that the developer surrenders essentially all control over their own pricing when they put something in the Amazon store. Amazon can just unilaterally tell you, "Oh, by the way, we're giving away your app this month. Don't like it? Tough." Now, yes, Amazon still has to give you a little bit of money in that case, but the definition of "a little bit" is pretty darn small: 20% of the list price, where the list price *must* be the lowest price you've ever sold your content at, ever, anywhere.

    The point isn't that Amazon might engage in volume-based pricing strategies. Yes, times are changing and old retailing strategies don't always work. The point is that when you put your app in the Amazon store you surrender any ability to make your own decisions about your pricing strategy. Instead you hand your pricing strategy to another party who has very different goals than you do and will likely choose a pricing strategy that will optimize for their goals, not for your goals. If you're ok with that, then fine. But be aware of what's going to happen.