> would basically make indie development impossible

We aren’t talking about indie development though. People like to paint a picture of a small, scrappy startup or beleaguered solo dev being held back by Apple’s crushing 30%, but that isn’t the case.

Unless you are earning more than a million dollars a year through the App Store alone, you don’t pay 30%, you pay 15%. And if you earn more than that, you still only pay 15% for long-term subscribers. And of course, all those SaaS companies where the app is just an interface for the larger service pay 0%.

As soon as you start talking about “Apple’s 30%”, you reduce the scope of the argument to the tiny fraction of developers with millions in revenue.

If you do actually want to talk about indie development, you should be talking about “Apple’s 15%”.

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MindSpunk 4 days ago | parent [-]

Let's run the numbers for indie development.

Say you're a team of 3. Your game takes 2 years to develop. You spend on salary for 3x2 years. You've spent ~$600,000 so far. Let's assume you haven't had any other sources of operational costs like software licenses for your art tools (3D modelling, 2D drawing, music production, sound production, game engine), marketing expenditure, development hardware, outside contracting, and a number of other things.

If you pull $800,000 in the first year Apple will take $120,000. Your net profit is $80,000. Apple has taken over half your profit.

If you pull $1,200,000 in the first year Apple will take $210,000. I'm going to assume that Apple still only takes 15% on the first $1million. Your net profit is $390,000. About a third of your profit has gone to Apple now.

The carve-out for small revenues is not some panacea. Fixed cost overheads for small teams will swallow the platitude very fast. Video games is a high risk, hits based industry. Apple's tax adds the most risk to small ventures, the kind of ventures that are going to produce innovative high risk content, making them even more risky adding more difficulty to acquiring finance.

So if we want to talk about Apple's 15% it's actually worse.

	▲	JimDabell 4 days ago \| parent [-]
		> You've spent ~$600,000 so far. > If you pull $800,000 in the first year This is not what people have in mind when you talk about poor little indie devs being unable to cope with 30%. We’re talking about a well-funded operation that can run for years without revenue. > So if we want to talk about Apple's 15% it's actually worse. Paying 15% is not worse than paying 30%.