author: Mateusz Popielak
Apple's Chinese Problems; Thousands of Games Without Updates
Apple had to suspend updates for thousands of games from the App Store in China due to the lack of proper license from the Chinese government. What does this mean for iPhone developers?
According to The Financial Times, Apple has suspended the publication of patches and updates for thousands of games in the Chinese App Stor. The reason for this is that developers do not have a license to make their games available in China. Interestingly, since 2016, the Chinese government has been requiring a license to distribute games sold in premium model or those that contain all forms of microtransactions, but until now Apple has disregarded this requirement. The company allowed for downloading games that were just waiting for the appropriate government license.
The arrival of the ban was heralded by messages from the American company, sent to developers creating games for iOS. The first one, from February this year, reminded of the obligation to have a license to sell the game in China; the second one, from June, warned that if the game does not have a license, it will be removed from the store after June 30.
It is worth adding here that the competitive Android store has been following the guidelines of the Chinese government from the very beginning.
Contrary to appearances, the whole situation is a relatively small blow to Apple's revenues, because according to the calculations made by 86Research, problems with unlicensed games will cost the giant only 340 million dollars. 80% of the top 200 profitable titles have a license.
According to data from Newzoo, this year as much as 53% of Chinese mobile gaming revenues will come from the App Store - about $13 billion. Also, according to information provided by Sensor Tower, revenues from all apps on the App Store in China will amount to around $16.4 billion. By comparison, revenue from the App Store in the U.S. is estimated to be about $15.4 billion.