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May 25, 2018 01:00 pm

Apple Blocks Steam's Plan To Extend Its Video Games To iPhones

Citing "business conflicts," Apple has blocked Steam's plans to distribute PC-based video games to iPhones. It's "a sign that Apple is serious about protecting its ability to take a cut of digital purchases made inside games on its mobile devices," reports Reuters. From the report: Steam, the dominant online store for downloaded games played on Windows PCs, had planned to release a free mobile phone app called Steam Link so that gamers could continue playing on their mobile phones while away from their desktop machines. But Apple has rejected the app, blocking its release, according to a statement from Steam's parent company, the Bellevue, Washington-based Valve. Steam did not give a precise reason for the App Store denials, saying only that Apple cited "business conflicts with app guidelines." But the conflict likely centers on what are known as in-app purchases or micro-transactions, in which gamers can spend small sums of money inside games to buy tokens, extra lives or others so-called digital goods. Lombardi said Steam disabled purchasing its iOS app but did not elaborate on how the change was made. Many analysts believe Apple could lose revenue if they allow Steam's app, which is essentially a store-within-a-store. "Apple takes a 30 percent cut of such purchases made within apps distributed through its App Store," Reuters notes. "[T]hose purchases are among the primary drivers of revenue in Apple's services business."

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