By Ian Sherr and Daisuke Wakabayashi
A long-running battle between Apple Inc. and Google Inc. for
mobile dominance is spreading to the most lucrative genre of apps:
videogames.
The two Silicon Valley giants have been wooing game developers
to ensure that top-tier game titles arrive first on devices powered
by their respective operating systems, people familiar with the
situation said.
In exchange, Apple and Google are offering to provide a
promotional boost for these games by giving them premium placement
on their app stores' home pages and features lists, these people
said.
Last August, for the launch of "Plants Vs. Zombies 2," a highly
anticipated sequel to a popular zombie-survival strategy game,
publisher Electronic Arts Inc. struck a deal with Apple, which
promoted the game prominently in its App Store, according to people
familiar with the matter.
In exchange, one of these people said, EA agreed to give Apple
about a two-month window of exclusivity for the title, which wasn't
released on Google's Android software until October.
ZeptoLab's sequel to its popular puzzle game "Cut the Rope,"
introduced in December, reflected a similar pattern. The company
and Apple agreed to about a three-month window of exclusivity for
Apple's App Store, in exchange for the store prominently promoting
the game, one person familiar with the matter said. ZeptoLab
launched an Android version in late March.
Apple and Google representatives declined to discuss specifics
of their exclusivity efforts. Exclusive titles are a common
marketing strategy for videogame consoles, but are new to mobile
apps.
Their rise marks an escalation in the battle for mobile-device
customers, with Apple particularly determined to counter the rise
of Google's free Android software.
Emily Greer, head of Kongregate, a gaming service owned by
retailer GameStop Corp., likened the contest to an "arms race" for
the best content.
"When people love a game, and it's not available on an alternate
platform, they'll change platforms," she said. "The level of
attachment a person has to a game can exceed almost anything."
Apple, which quickly became a leader in the smartphone market
after introducing the iPhone in 2007, has been grappling with
growing sales of Android-based phones by Samsung Electronics Co.
and other manufacturers.
Nearly 80% of the one billion smartphones shipped around the
world in 2013 used the Google-developed software, according to
research firm IDC. At the same time, Apple's market share has
dwindled to 15%.
Apple for years attracted most new apps first. Game makers say
that was partly because it was easier to develop games for Apple's
iOS software and that it ran on fewer devices. By contrast, there
are many variants of Android, which runs on a wide range of
smartphones and other devices.
But Android has gained ground in recent years, leveling the
playing field between the two camps. Besides the attractions of
Android's huge market share, tools for writing software have gotten
easier to use.
Some $16 billion was spent on mobile apps last year, according
to a joint study by research firms IHS and App Annie. Videogames
accounted for more than 70% of the total, according to App Annie
estimates.
"Videogames are critical applications," said Patrick Mork, a
former director of global marketing for Google's app store and now
chief executive of mobile- game company Unspoken Tales. "Not only
is it where people are spending their time and money, they also
showcase the power of computing on their devices."
Game developers, meanwhile, face increasing pressure to stand
out from their rivals and persuade gamers to try their wares.
Prominent display in an app marketplace can produce as much as a
tenfold spike in daily downloads, depending on the location of
associated banner ads and how long a promotion runs, Mr. Mork
said.
For Apple, the push to secure exclusive games challenges a
long-standing policy of leaving decisions about which apps its App
Store promotes to an "editorial team" that tests the software,
without taking business considerations into account.
As Android's influence has grown, Apple's editorial team has
been factoring in exclusivity to a greater degree after it deems an
app to be attractive, according to people familiar with the
process. The editorial team also will give greater consideration to
titles recommended by its developer-relations staff, they said.
Apple doesn't offer money for game exclusives, only marketing or
promotional assistance, these people said. It typically makes such
offers after meetings in which game makers either discuss or
demonstrate their coming titles.
The Electronic Arts and ZeptoSHYLabs games were promoted in a
large box at the top of the App Store's home page.
An Apple spokeswoman declined to comment, as did a spokesman for
ZeptoLabs. An EA spokesman said the company "works closely with
both Apple and Google."
Gonzague de Vallois, head of sales and marketing at French
developer Gameloft, creator of the popular "Asphalt" racing-game
series, said he and Apple had discussed swapping exclusivity for
promotion, but Gameloft ultimately decided it would be better to
launch an iOS and Android simultaneously. "We haven't found the
case where it makes sense for us," he said.
Google has struck deals to help promote apps that integrate
Android branding. In one example in March, Game Insight, a popular
Russian app developer, says it offered discounts on items shaped
like Android's robot mascot that were sold within a game. In
return, Google agreed to feature the company's app in a specific
section of its app store.
Amazon.com Inc., too, has gotten into the act. The online
retailer has sought exclusivity deals with game developers as a way
to boost the appeal of its Kindle family of Android devices.
Amazon is offering premium placement on its app store's home
screen in exchanges for exclusivity, according to people familiar
with the matter. "We work with many developers to bring their apps
to the Amazon Appstore, some of which are exclusive to our store,"
said an Amazon spokeswoman.
Software exclusives appear to attract buyers to specific
hardware products, particularly in the videogame industry. That
inspired Microsoft Corp. to secure an agreement that "Titanfall,"
EA's new and well-regarded space-age shooting game, would be
released only for Xbox consoles and personal computers this
spring.
But Lewis Ward, an analyst at IDC, questioned whether exclusive
titles have comparable impact on consumers' choices for tablets or
smartphones.
"In terms of decision factors of why you buy the device you do,
games are very low," he said.
Write to Ian Sherr at ian.sherr@wsj.com and Daisuke Wakabayashi
at Daisuke.Wakabayashi@wsj.com
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