Developers are building new software for apps that lets companies bill customers without paying Apple, which takes up to 30% of app sales.
They’re preparing for new changes Apple has to implement after a federal judge ruled in September that Apple has to let app developers link to alternate payment systems. The ruling came as a result of a legal battle between Apple and Epic Games, the maker of Fortnite.
The new software, if adopted widely by developers and users, could threaten Apple’s profit engine. The App Store is part of the company’s services business, which reported $53.8 billion in sales during fiscal 2020 at a 66% gross margin, accounting for about 20% of Apple’s revenue.
Developers are preparing several options since it’s unclear what they’ll have to do to abide by Apple’s new rules. Apple hasn’t shared details of its plans to comply with the judge’s order, which takes effect on Dec. 7
Paddle CEO Christian Owens said the ruling provides an opportunity to expand his company’s Mac and Windows customer billing business to Apple’s iPhone App Store. Paddle built three different implementations of an iPhone payments product in the hope one will comply with the rules.
“We would love to hear from Apple, and get on-the-record a description of exactly what’s going to be allowed versus not,” Owens said.
One version of Paddle’s software development kit (SDK) lets app-makers offer monthly or annual subscriptions with an “Upgrade Now” button. The button links to a Paddle-hosted webpage in a Safari browser with several payment options, including Apple Pay and PayPal. The user is returned back into the app after a payment is processed.
Paddle will offer developers the ability to link out from their apps into a payment screen.
Paddle
RevenueCat, a company that builds tools for iOS developers to manage customer subscriptions, is also developing a browser-based payment system that developers can to apps add without having to build their own, CEO Jacob Eiting said.
“The real magic is that developers will get a portable link that they can include in external marketing, or now in the app, that will unlock access instantly using our SDK,” Eiting said in an email.
“We’re operating under the assumption that developers will still be required to use Apple’s IAP inside of their apps but that you now will be allowed to reference and link to external paywalls,” Eiting said.
RevenueCat plans to offer a product that lets app developers sign up new subscribers through a link in their app.
RevenueCat
That’s also what Paddle’s CEO thinks will happen.
“I think it’s going to be a situation of, if you want to offer an off-platform, in-app purchasing mechanism, you have to offer the Apple in-app purchasing mechanism alongside that as well,” Owens said.
Apple hasn’t updated its App Store guidelines, the document that determines what developers can and can’t do in iPhone apps, since the ruling last month. All iPhone apps and updates go through a process called App Review, where Apple employees reject apps that don’t conform to Apple’s rules.
The judge’s decision says Apple must allow customers to leave its ecosystem to buy virtual goods on the web. But it doesn’t prevent Apple from making other policy changes to its store, like developing a new way to charge fees for iPhone app transactions that happen off the platform. It’s a possibility that Apple CEO Tim Cook raised in testimony during the trial.
“If not for [in-app purchasing], we would have to come up with another system to invoice developers, which I think would be a mess,” Cook said in May.
Apple declined to comment but argued during the trial that the App Store ensures user privacy and safety. Apple general counsel Kate Adams said in September that the Epic Games ruling was a “huge win,” and the company hailed the court’s finding that Apple is not a monopoly.
What it means for Apple and consumers
Apple announces new iPhone 11 Pro at a launch event on Sept. 10. .
Source: Apple
Some Wall Street analysts believe the impact on Apple will be limited but real, potentially reducing Apple’s earnings by up to 4%, with off-platform billing being used more often for expensive software subscriptions.
Eiting said Apple’s changes might not have a huge financial impact on developers. He argued users will be less likely to complete purchases if they have to go to an external webpage, even if apps can link to it. It could also annoy users, who will have to manage subscriptions individually instead of inside the iPhone’s settings.
“I think it’s good to let systems compete, but I’m not convinced it’s going to be a windfall for anyone,” Eiting said.
Alternative payment systems will charge developers less than Apple does while still providing convenience, like managing subscription cancellations and offering insight into sales trends.
Owens said Paddle will take a 5% to 10% cut of gross purchases, undercutting Apple’s 15% to 30%, while still handling behind-the-scenes headaches like international taxes and customer support. That savings could be passed to consumers.
Developers will feel incentivized to lower prices if Apple requires apps with direct billing links also offer in-app purchases. For example, a music service might charge users $9.99 a month if they subscribe from within an app, since Apple takes a cut of those purchases, but only $6.99 a month if they click a link to subscribe directly on the service’s website.
“What we’re trying to get across with us building a competing solution to in-app purchases is the fact that even for the smallest transactions, we can do this for 10% of the value of those transactions, and then scale the price down from there,” Owens said.
Tim Sweeney, the CEO of Epic Games, whose lawsuit led to these changes, congratulated Paddle in a tweet on Thursday.
CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.
The airline said Friday the service will be free to passengers.
United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.
Financial details of the deal were not disclosed.
The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.
“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.
The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.
Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:
Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.
Preorder Through Major Canadian Retailers
While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:
Best Buy Canada
Walmart Canada
EB Games (GameStop)
Amazon Canada
The Source
Steps to Preorder via Canadian Retailers:
Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.
3. Sign Up for Notifications
Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.
Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.
4. Prepare for High Demand
Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:
Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.
Final Thoughts
The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.
For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.
Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.
Key Features of the PS5 Pro
The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:
Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.
Optimized Games & Patches
Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:
Alan Wake 2
Assassin’s Creed: Shadows
Demon’s Souls
Dragon’s Dogma 2
Final Fantasy 7 Rebirth
Gran Turismo 7
Marvel’s Spider-Man 2
Ratchet & Clank: Rift Apart
Horizon Forbidden West
These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.
Design & Compatibility
Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.
Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.
Pricing & Availability
The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:
$699.99 USD
$949.99 CAD
£699.99 GBP
€799.99 EUR
¥119,980 JPY
Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.
The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.
Preorder your PS5 Pro and step into the next generation of gaming this holiday season.
