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Google won't reduce its 30% cut on Google Play app sales: CEO

Google CEO Sundar Pichai said that the company will stick to its current revenue split for Google Play app sales.

  • Published: February 6, 2019 10:23 AM IST
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It came as a surprise when Fortnite developers decided to bypass the Google Play Store for exclusive hosting of the APK directly on Epic Games website. The reason behind such move was that Google’s cut of 30 percent is way too much for developers, and they wanted Google to reduce its commission. But despite the criticism from the developers community around the world, Google is not going to reduce its cut on the app sales from its Play Store.

On Monday, at Alphabet’s earnings call with investors, Google CEO Sundar Pichai said that the company will stick to its current revenue split for Google Play app sales. Google has no plans to change the 30-70 split between Google and developers.

“We invest a lot in our infrastructure to continuously make sure the overall experience is safe and results in high engagement for the developers back. So, I think there’s a value exchange there. And it’s been the industry standard. And so, I think we’ll continue down that path but obviously, always adapt to where the market is,” said Pichai.

Last year, when Fortnite skipped Google Play hosting, CEO of Epic Games Tim Sweeny blamed the economics of the store ecosystem. “The 30 percent store tax is a high cost in a world where game developers’ 70 percent must cover all the cost of developing, operating, and supporting their games,” he added.

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The unexpected controversy around Fortnite‘s Android release being exclusive to Epic Games website, resulted in Google’s loss. It was then estimated to be a loss of at least $50 million in the platform fee revenue. The app analytics firm Sensor Tower had claimed that Google will lose out on $50 million in 2018 because of Fortnite skipping the Play Store.

  • Published Date: February 6, 2019 10:23 AM IST