Genshin Impact To Lead Chinese Developers in Battle Against App Stores

Within just months of release, Genshin Impact has become one of the most successful games of 2020. Naturally, it has set new benchmarks for fellow Chinese developers like NetEase, NetDragon, and Tencent, among others. Interestingly, MiHoYo’s decision to publish the game through its own website has sparked a debate around Chinese app stores.

Apparently, Chinese companies like Huawei, Vivo and Oppo take a staggering 50% commission on in-app purchases through their app stores. On the flip side, foreign app stores like Google Play Store and Apple’s App Store have conventionally resorted to a 30% commission for the same. Certainly, this is an unfortunate situation for the Chinese developers.

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NetEase CEO applauds Genshin Impact

Owing to MiHoYo’s initiative, other developers like NetEase have also spoken on the matter. As per NetEase’s CEO, William Ding Lei, MiHoYo has taken the first step in the right direction. Apple Store recently cut down its commission on in-app purchases from 30% to 15% for developers earning less than $1 million a year, because of which, the CEO is certain of a positive change soon.

On NetEase’s third-quarter earnings call, he said, “We are pretty optimistic about this because China is the country with the highest cost of publishing a game. Strangely, when it comes to Android app stores, those overseas take 30 percent, and those in China take 50 percent. So there is a lot of room (for improvement)

“We endorse Genshin Impact’s decision to publish the game with its own distribution channel. This is a very excellent market decision. I’m also aware that Apple has lowered its fee to [15 percent]. These all suggest that the battle between app stores and content providers will tilt towards content providers.”

Google Play does not function in China, and the native companies have always tried to capitalize on this. Historically, they’ve also been successful in doing so.

A throwback to Fortnite’s clash with Apple on platform tax

The predicament of facing high commissions on in-app purchases is not exclusive to Chinese game developers. Fortnite’s developer Epic Games had similarly opposed Apple for its 30% commission on the app store. Even though Apple reduced its commission eventually, it had already gotten into a legal tussle with Epic Games following the removal of Fortnite its store.

From the looks of it, game developers around the world are facing the common issue of paying excessive taxes on their games. However, they are finally expressing their concerns and better alternatives like X.D. Network Inc’s Tap Tap has also emerged simultaneously.

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Following these recent developments, it is safe to assume that the Chinese developers will pose a united front against the home-based app stores. Do you agree with the demands of developers like NetEase, Tencent and MiHoYo?