“Google’s statement is fraudulent. Shame on them." Epic CEO Tim Sweeney slams Google after claiming Microsoft has "always been able" to offer an Xbox Store on Android

In the post-Windows Phone world, Microsoft finds itself in the unenviable position of having to beg Google and Apple for scraps to support its mobile computing efforts.

Whether it’s Microsoft Edge, Microsoft Copilot or Xbox Cloud Gaming, Apple and Google are doing everything in their power to prevent their biggest rival from making headway in mobile phones as expected. The latest controversy revolves around Android, which certainly doesn’t make it easy for third-party developers to succeed on its platform at the moment.

To that end, Microsoft, Epic Games, and even companies like Samsung have considered building their own app stores to avoid Google’s fees. However, since 99% of people get their Android apps directly from Google Play, the chance that third-party app stores for Android will ever really gain traction is slim to none. However, that didn’t stop her from trying. The launch of Microsoft’s own Android app store for Xbox mobile games has since been delayed pending court rulings in the US over Google’s rules for providing Android apps.

Yesterday, Sarah Bond outlined the current status of the Xbox Mobile App Store for Android in a post on BlueSky. “At Xbox, we want to give players more choice in how and where they play, including the ability to play and purchase games directly from the Xbox app. I recently shared our goal to unlock these features on Android devices first with the Google Play Store in the US, while other app stores adapt to consumer demand,” Bond pointed out. However, as expected, Google is not taking Microsoft’s efforts lying down.

Xbox cloud gaming on the backbone controller

Due to Google’s 30% transaction fees, Microsoft had to remove in-app purchases from its Xbox app on Android in order to keep the service financially viable. It’s available now online at xbox.com/play. (Image credit: Future)

Google was granted a reprieve by the US courts while it worked out its appeal process, resulting in a delay to the feature. Bond continued: “Due to a temporary administrative stay recently granted by the courts, we are currently unable to roll out these features as planned. Our team has built the functionality and is ready to go live as soon as the court makes a final decision.”

Now Google has responded itself (via PureXbox). “Microsoft has always been in a position to offer its Android users the ability to play and purchase Xbox games directly from their app – they simply chose not to.” Google claims “The court order and the rush to force its implementation threaten Google Play’s ability to provide a safe experience. Microsoft, like Epic, is ignoring these very real security concerns. We remain focused on supporting an ecosystem that works for everyone, not just two of the largest gaming companies.”

Google’s conclusion from its court battles with Epic Games led to the Fortnite developer’s CEO, Tim Sweeny, making some comments of his own: “Google’s statement is misleading” Sweeney’s post on Twitter reads: “Shame on them. They know full well that the 30% cut they are demanding is far more than the entire profit from game streaming. They know this because they themselves wasted hundreds of millions of dollars building the failed Stadia games business.”

Oofas the children say. Let’s break down what’s actually going on.

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And what is the end result?

Logitech G Cloud leans against retail box with Xbox Wireless Controller.

Android-based gaming devices have never really taken off, and at least part of that is likely due to Google sharply cutting app sales, forcing manufacturers to squeeze out of the market to make a profit. (Image credit: Windows Central | Zachary Boddy)

Tim Sweeney is absolutely right that Google’s statement is fraudulent. The company does not mention the fact that Microsoft and Epic Games are exiting the Google Play model due to a drastic 30% cut in software sales. Xbox, PlayStation and Nintendo are all making similar cuts to their hardware platforms, but the hardware there is sold at cost or generally for razor-thin margins – the cut serves to keep the platform afloat. Apple, on the other hand, sells its hardware at a premium above from the 30 percent cut for developers, which is a bit like having your cake and eating it too.

But wait, Google itself largely doesn’t supply its own hardware, so there’s generally no significant scope here. Its Pixel phones have a negligible global presence and its own Android Pixel tablet line has reportedly been discontinued. The Android business relies almost entirely on software and services delivered to third-party devices via Google Play, while also fueling its vast advertising empire (which, by the way, the United States recently described as a monopoly). Google requires its hardware partners to pre-install their apps and services on these phones in order to gain access to Google Play, while also controlling the default apps. This gives the company a huge advantage when it comes to the data that powers its search and advertising empire.

Its status as a middleman has angered developers like Microsoft and Epic Games, who are unable to build new businesses like the cloud gaming business because of the 30 percent cut in app revenue. Cloud gaming is unviable by any measure as of 2024, and the inability to sell in-app purchases on Google Play is one of the things holding it back. At the same time, discoverability will be almost non-existent without a Google Play listing, increasing Microsoft’s user acquisition costs.

As much as I loathe Google (not least because of its anti-competitive behavior towards Windows Phone), it’s hard not to see their point of view to some extent. With the US Department of Justice calling Google’s advertising business a monopoly, there’s a real chance the company will have to explore other avenues for Android’s profitability if it’s forced to weaken its own advertising business. It would be remiss of them not to fight it and play devil’s advocate for a second, considering they could be forced to give up two revenue streams for Android instead of just one.

Xbox cloud gaming show on a variety of devices

Microsoft’s “Xbox Everywhere” strategy is based on selling Xbox games on every conceivable platform. So far, its efforts have been focused on Windows PCs and the mobile web, thanks to Apple and Google’s iron grip on native mobile software. (Image credit: Microsoft | Windows Central)

Microsoft’s 30 percent cut for Xbox game developers is aimed at improving the hardware of the Xbox Series Store and Steam itself, but that vision will likely take years to realize. However, Microsoft is taking a smaller share than usual in its Microsoft Store for PC games, around 12% compared to the usual 20-30%.

I would argue that Windows’ open platform model was better for consumers than what Google’s iOS and Android offer, where Microsoft takes 0% and innovators can freely build businesses like Steam. Android Is More open than iOS, allowing for easy sideloading and pre-installed OEM app stores, but its tight control over Google Play promotes its own products at the expense of others. Amazon’s Kindle book app for Android, for example, also had to eliminate in-app purchases from Google, while Google itself continues to sell books via Google Play.

Where this all goes will ultimately be up to the courts, but this all could have been avoided if Microsoft had simply continued to invest in building out its own mobile platform… you get the idea Windows Phone. And THAT is the end result!

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“Google’s statement is fraudulent. Shame on them.” Epic CEO Tim Sweeney slams Google after claiming Microsoft has “always been able” to offer an Xbox Store on Android

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