Ever since the advent of the app stores, game companies have been paying the 30% “tax” on digital purchases for the mobile app stores. However, legal rulings have spurred companies like Xsolla to create alternative web shops aimed at helping developers recover lost revenues.
Rival Coda Payments entered the picture with the launch of Activision Blizzard’s Call of Duty: Mobile Web Store in 44 countries, providing the company (now owned by Microsoft) a means to directly connect with players. I had the opportunity to speak with Shane Happach, CEO of Coda, about this initiative.
In November, Coda introduced Custom Commerce, a web store system that enables companies and creators to sell and process payments directly with consumers. This system enables merchants to adopt the direct-to-consumer model, where brands or manufacturers sell their products directly to end users.
This shift became feasible after Epic Games challenged the alleged monopolies of Apple and Google’s app stores, which charge a 30% royalty on every app sale processed through their stores. While Epic lost its case against Apple, one ruling changed the game: Apple could not prevent developers like Epic from advertising lower prices on off-store web shops.
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