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Developer Drops Game Price To $0 Citing Android Piracy
hypnosec writes with news of a curious way of fighting piracy. From the article: "Android based devices are being activated at the rate of million a day and users are downloading apps and games at a rate never seen before. Despite these promising stats, developers of Android based games and apps are not really keen on porting games and apps that have been successful on iOS to Android. Why? Rampant piracy on Android! Madfinger Games has joined the long list of developers who have recently turned their paid Android based game, Dead Trigger, to a free one. Originally priced at $0.99 on Play Store, the first person shooter game is now available for free . The iOS version of the game still costs $0.99 and hasn't been made free."
Zero-cost, but certainly not Free Software; one has to wonder whether Open Source games with a "donation" build in the store would do better than proprietary games with upfront costs.
On Tuesday, Apple is set to report financial results for the second quarter. Analysts are expecting net income of $9.8 billion. But whatever figure Apple reports won't reflect its true profit, because the company hides some of it with an unusual tax maneuver.
Apple Inc., already the world's most valuable company, understates its profits compared with other multinationals. It's building up an overlooked asset in the form of billions of dollars, tucked away for tax bills it may never pay.
Tax experts say the company could easily eliminate these phantom tax obligations. That would boost Apple's profits for the past three years by as much $10.5 billion, according to calculations by The Associated Press.
While investors might rejoice if Apple suddenly added $10.5 billion to its profits, unilaterally erasing a massive U.S. tax obligation could tarnish its reputation as a relatively responsible payer of U.S. taxes. Instead, the company is lobbying to change U.S. law so that it can erase its liabilities in a less conspicuous fashion. The issue has become part of the presidential campaign.
Like other companies, Apple typically keeps profits on overseas sales in overseas accounts. When someone buys an iPad in Paris or Sydney, for instance, the profit stays outside the United States.
Apple may pay some corporate income taxes on that profit to the country where it sells the iPad, but it minimizes these by using various accounting moves to shift profits to countries with low tax rates. For example the strategy known as "Double Irish With a Dutch Sandwich," routes profits through Irish and Dutch subsidiaries and then to the Caribbean.
When it comes to using creative tax techniques, Apple is no different from other multinational corporations, says Robert Willens, an independent accounting expert.
And just like other corporations, Apple leaves cash overseas. If it brought it home to the U.S., it would have to pay federal income taxes on the money (though it would get a credit for foreign taxes already paid). In Apple's case, those overseas accounts have grown to a staggering $74 billion — equal to the market value of Citigroup Inc.