facebook steps into cloud gaming — and another feud with apple

Facebook is preparing to become the newest major technology company to venture into cloud gaming. While their strategy differs from those of Microsoft and Google, Facebook emphasizes a common obstacle: navigating restrictions imposed by Apple.
Rather than directly competing with services like Stadia or xCloud in the console gaming market, Facebook is concentrating exclusively on mobile games. The rationale behind streaming mobile games, even on devices capable of running them natively, centers on accelerating user engagement and streamlining the path from advertisement to gameplay. Users will be able to instantly access games without needing to download them, with the option to download later from a mobile app store and continue their progress seamlessly.
The service will initially be available on desktop web browsers and Android devices, but not on iOS, due to what Facebook describes as limitations within Apple’s App Store guidelines.
Apple has faced criticism throughout 2020 from developers of prominent apps, including Spotify, Tinder, and Fortnite, regarding the commission fees charged for app downloads from the App Store. However, the challenges faced by cloud gaming platforms have been more complex, relating to the fundamental conditions under which these platforms are permitted to function on Apple devices.Apple was initially hesitant to establish a clear pathway for cloud gaming applications from Google and Microsoft, previously prohibiting them on the App Store. While Apple has since updated its policies to allow these apps, the requirements are more restrictive than the platform providers anticipated, mandating that users be directed to the App Store before they can stream games on their devices.
Although a brief redirection is a minor inconvenience for users downloading large, single-player games, Facebook gaming executive Jason Rubin asserts that these stipulations are incompatible with Facebook’s vision for the platform – enabling immediate access to mobile games without any downloads.
“It’s a series of obstacles that collectively create a poor user experience,” Rubin explained to TechCrunch.
Apple communicated to TechCrunch that they continue to collaborate with Facebook to align its gaming initiatives with their guidelines, and that platforms can reach iOS users by submitting individual games for App Store review or operating through Safari.
Regarding the implementation of the platform on the mobile web, Rubin stated that without the ability to direct users from their iOS app to browser-based experiences – a function currently prohibited – Facebook does not consider primarily accessing the service through a browser a viable alternative. During a Zoom demonstration, Rubin illustrated how this could function on iOS, with users clicking an advertisement within the app and being redirected to a game experience in mobile Safari.
“But if I click on that, I can’t go to the web. Apple says, ‘No, no, no, no, no, you can’t do that,’ ” Rubin stated. “Apple may claim to support a free and open web, but the functionality you can actually build on that web is determined by their decisions.”
Rubin, who co-founded the game development studio Naughty Dog in 1994 before its acquisition by Sony in 2001, joined Facebook after Oculus was acquired in 2014. He initially managed the games ecosystem for Facebook’s virtual reality headsets and was later appointed VP of Play, overseeing the company’s gaming initiatives across its core apps.Rubin, experienced in platform-developer conflicts, distinguished Facebook’s issue with Apple from the complaints of companies like Epic Games, which filed a lawsuit against Apple this summer.
“I want to clarify that we are giving Google 30% [on Android]. The issue with Apple isn’t about money,” Rubin told TechCrunch. “We could be willing to give Apple the 30% right now, if they would simply allow consumers the opportunity we are offering.”
Facebook is also implementing a 30% cut of transactions within these games, despite past criticism from its executive team regarding Apple’s high revenue fees, particularly concerning the impact on small businesses during the pandemic. This led Apple to temporarily waive its commission on ticket sales for online events hosted by small businesses.
Apple’s reluctance to allow major gaming platforms independent access to consumers highlights the potential reduction in App Store revenue that could result from a shift towards cloud platforms. CNBC estimates Apple earned approximately $50 billion from the App Store last year, with gaming being its most profitable category.
While Facebook positions this as a challenge against a major platform for the benefit of gamers, it is not a contest between equals. Facebook generated nearly $70 billion in ad revenue last year, and enhancing its mobile game offerings could significantly increase that figure – a prospect threatened by Apple’s App Store regulations.
Initially, Facebook is launching the service conservatively, with only 5-10 titles available. Access is being rolled out this week across several U.S. states, including California, Texas, Massachusetts, New York, New Jersey, Connecticut, Rhode Island, Delaware, Pennsylvania, Maryland, Washington, D.C., Virginia, and West Virginia. This limited geographic rollout is due to the technical requirements of cloud gaming, necessitating proximity to data centers.