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Apple blocks Steam’s plan to extend its video games to iPhones

Most famous cell phone brand Apple has blocked the plans of the biggest distributor of PC-based video games from accessing into iPhones.  Game distributor says, a sign that Apple is serious about protecting its ability to take a cut of digital purchases made inside games on its mobile devices.

A famous online store named Steam, had planned to release a free mobile phone app called Steam Link so that user could continue playing on their mobile phones while being away from their computers. They got the bad news when Apple rejected the app, blocking its release,

Valve spokesman Doug Lombardi says, “The team here spent many hours on this project and the approval process, so we’re clearly disappointed,” in a statement to Reuters. At the end he showed a hope and says, “But we hope Apple will reconsider in the future.”

Chief of TECHnalysis Research, Bob O’Donnell, said Apple’s move to block steam could hurt it with users between 18 and 24 years old, because according to their research more than half of whom have iPhones.

he said, “What they’re doing is denying iPhone owners access to the most important gaming ecosystem there is,”. Furthermore he added,  “Given that the younger demographic skews toward iPhones, it seems particularly damaging.”

They only said that the business conflicts with app guidelines and Steam did not give a precise reason for the App Store denials. 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 like many other live games on internet or app stores.

Lombardi further said Steam has disabled purchasing its iOS app but did not yet elaborate on how the change was made.

It is considered a big profitable business because Apple charges a 30 percent cut of such purchases made within apps distributed through its App Store. Experts and analysts believe those purchases are among the primary drivers of revenue in Apple’s services business, which includes the App Store, iCloud and Apple Music. In Apple’s most recent quarter, services revenue reached about $9.1 billion, beating Wall Street expectations.

The store, Steam, also offers purchases within games distributed through its platform and they also get a cut of those purchases.

 

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