I really love the idea of cloud gaming. And, as someone who occasionally subscribes to Xbox Game Pass Ultimate, I love the idea of accessing a ton of Xbox games across all of my devices instead of just my Xbox Series X. However, I absolutely hate trying to play a game from Xbox Cloud Gaming on my iPhone.
Right now, there's no Xbox Cloud Gaming app on the iPhone. While there is an Xbox app and a Game Pass app, if you want to access Xbox Cloud Gaming, you have to do so through a browser on the iPhone. It's a terrible experience and, as much as Apple and Microsoft try to make it better, it's clear that a dedicated app would be way better for all of us gamers.
When Apple opened up the App Store for cloud gaming apps, I was finally stoked that Microsoft would finally release a dedicated Xbox Cloud Gaming app or build the functionality into the Xbox app. However, it looks like we're still a ways away from such a thing happening.
Apple's App Store fees are the problem
As reported by The Verge, Microsoft is arguing in its submission to the UK’s Competition and Markets Authority (CMA) that Apple's App Store fees make bringing Xbox Cloud Gaming to the App Store "impossible" due to the economic realities of the business model. Basically, Apple's fees would make it too expensive to make the service available on the App Store.
Specifically, Microsoft says "Apple’s IAP commission fee is set at a level that is neither economically sustainable nor justifiable. The 30% commission fee makes it impossible for Microsoft to effectively monetize its cloud gaming service."
We'll see what happens here, but it seems that the only way that we'll get Xbox Cloud Gaming in app form on the iPhone is if Apple works out a new fee structure for companies like Xbox. In the past, the company has already been forced to lower its fees or allow third-party payment providers in certain countries, so legislative pressure seems to be the only thing making headway.
Microsoft seems keen on continuing to push its agenda using that lever.
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