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Old 01-14-2011, 06:08 PM   #1
Daithi
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Amazon, NOT developers, to set App prices

An interesting article at businessinsider.com regarding how App prices will be set for the Kindle. Apparently the developer can set the MSRP (Manufacturer's Suggested Retail Price), but ultimately Amazon gets to set the actual sales prices. The developer gets either 70% of the actual sales price or 20% of the MSRP -- whichever is higher.

Apparently developers aren't quite sure how they feel about this.

Personally, I'd just like to get access to Amazon's KDK (i.e. SDK).
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Old 01-15-2011, 06:06 PM   #2
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Apps for kindle? since when does the kindle use apps?

This article is about Amazon and Google Android...
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Old 01-15-2011, 08:32 PM   #3
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While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there.

Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else.

About a year ago Sony started a program to allow iPhone/Android like games on their portable gaming system the PSP. But the ones that have been brought over tend to cost $5, compared to $1-2 on the iPhone. Which has caused a lot of people to complain to Sony about the high prices for the same game.
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Old 01-16-2011, 10:33 AM   #4
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Originally Posted by Ravensknight View Post
Apps for kindle? since when does the kindle use apps?
IIRC they allowed Kindle apps about... 6 months ago?

However you are correct that this new store isn't for selling Kindle apps. Amazon is putting together a competitor to the Android Marketplace.

Who knows, if the Apple App Store takes off, Amazon could try to clone that as well....
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Old 01-16-2011, 09:36 PM   #5
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Amazon setting prices again? Yeah, sounds like they're trying to bully everyone out of the market long before they can get a foothold and muscle Amazon out of the picture. Honestly though, I really wish there was an online retailer similar to Amazon (actually, 3-4 would be even better) who could really give Amazon a run for their money. Then you'd start seeing them do what's right for the customers rather than playing school yard bully and fleecing everyone. It's why I always cheer for more competition, more variety, and less of this "one stop shop" BS. Competition does wonders for keeping companies honest and doing what they should be.
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Old 01-16-2011, 09:58 PM   #6
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More proof the publishers were right to worry about Amazon's pricing power

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Old 01-16-2011, 11:43 PM   #7
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Publishers get to charge whatever they want, but developers can't? I hope the developers go somewhere else.
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Old 01-17-2011, 12:04 AM   #8
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Quote:
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More proof the publishers were right to worry about Amazon's pricing power

Lee
yeah! cause those holy, saintly, wonderful, etc, etc publishers are doing so well by us the consumers.
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Old 01-17-2011, 11:09 AM   #9
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More proof the publishers were right to worry about Amazon's pricing power
How so? They're willing to guarantee the developer will get at least $X per sale. They're simply offering the developer *more* if the price it retails for is anywhere near what the developer set.
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Old 01-17-2011, 03:31 PM   #10
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How so? They're willing to guarantee the developer will get at least $X per sale. They're simply offering the developer *more* if the price it retails for is anywhere near what the developer set.
No, Amazon is guaranteeing the developers 20% of the MSRP. So, if a developer takes the time to develop an app that he wishes to price at $10, he is only guaranteed $2, not the $7 he is expecting.

Then, as Amazon decides to sell all the apps for $1 to buy up market share from the other Android markets, the developer will be left with a customer base that now expects all his apps to only sell for a dollar.

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Old 01-17-2011, 03:41 PM   #11
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No, Amazon is guaranteeing the developers 20% of the MSRP. So, if a developer takes the time to develop an app that he wishes to price at $10, he is only guaranteed $2, not the $7 he is expecting.
Which conflicts with what I said... how? I never said they were guaranteeing 70%, just that they were guaranteeing an amount.

Quote:
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Then, as Amazon decides to sell all the apps for $1 to buy up market share from the other Android markets, the developer will be left with a customer base that now expects all his apps to only sell for a dollar.
And if Amazon wants to lose $1 on each copy of the app, why shouldn't they be allowed to?
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Old 01-17-2011, 03:44 PM   #12
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The More things change...

[QUOTE=JeremyR;1338387]While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there.

Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else.

I have seen both sides of this argument before, By limiting the apps that can be released on your device you limit the amount of pure ripoff Cra... that gets released on your platform, On the other hands you are telling developers "Don't brother with us, we are not going to support you" So when you hear "You have to get ____ It is just so neet!" you are not able to get it. And the customer soon goes to a different platform where they can get it. I know a guy who has 4 game mechines just so he can play the games he wants, But I am not willing to go that far and I dought many are
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Old 01-17-2011, 03:47 PM   #13
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And if Amazon wants to lose $1 on each copy of the app, why shouldn't they be allowed to?
Perhaps a developer doesn't want the market value of all apps to be set at $1. After Amazon buys up marketshare, than Amazon can stop subsidizing the app price, and now the developer will only get $.70 for his apps.

Customers loose too as developers stop putting the kind of effort to creat more than a fart app because they can't sell them for the price that makes them worth developing.

Lee
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Old 01-17-2011, 04:10 PM   #14
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Perhaps a developer doesn't want the market value of all apps to be set at $1. After Amazon buys up marketshare, than Amazon can stop subsidizing the app price, and now the developer will only get $.70 for his apps.

Customers loose too as developers stop putting the kind of effort to create more than a fart app because they can't sell them for the price that makes them worth developing.

Lee
That is so wrong... there is no law or rule that says these people have to use Amazon. They have every right to use whoever or whatever system they want for the content distribution that can get them the profit they prefer.
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Old 01-17-2011, 04:15 PM   #15
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Perhaps a developer doesn't want the market value of all apps to be set at $1.
Then they should start selling directly to consumers, because that's the only (legal in the US) way to guarantee the retail price of their product.
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