Apple blocks Steam's plan to extend gaming experiences to iPhones
Online gaming giant, Steam, had plans of releasing a new free mobile app to its users called Steam Link, allowing gamers to play on their mobile devices when away from their desktops, but Apple isn't allowing the release of the app due to guideline violations.
The exact reason for the Steam Link mobile app denial is uncertain but is most likely due to the in-app purchases and micro-transactions that the application offered, where gamers can spend small sums of money to buy in-game tokens, extra lives, or other digital goods.
Although in-app purchases exist in many apps, Steam offers purchases within games distributed through its platform and takes a cut of those purchases. Apple's App Store guidelines ban store-within-a-store purchases unless the flow uses Apple's infrastructure.
Apple takes a 30 percent cut of in-app purchases from apps distributed through its App Store, and analysts believe those purchases are their primary source of revenue. In Apple's most recent quarter alone, services revenue hit $9.1 billion.
Valve Corporation spokesman, Doug Lombardi, stated:
"The team here spent many hours on this project and the approval process so we're clearly disappointed. But we hope Apple will reconsider in the future."
Bob O'Donnell, chief of TECHnalysis Research, stated Apple's move to block Steam could be damaging as users between 18 and 24 years old, more than half of which own iPhones, could get upset enough to give up on Apple and explore other platforms.