Huawei's Potential Fee Shakeup Could Be a Win for Game Developers

There have long been complaints that app stores take too big a share of in-app purchases, but nothing has managed to shake the 30% take-rate standard over the past decade. However, Bloomberg’s recent report on Huawei's talks with Tencent to establish a lower-than-industry share of 20% for in-game purchases provides hope for a reset. This move also reinforces our call for higher profitability for gaming companies over the long run. Although the Huawei HarmonyOS mobile operating system currently represents a small percentage of smartphones in China, the potential lowering of its app store fee to 20% could pressure other mobile app platforms to follow suit.