The International Game Developers Association posted a lengthy criticism of the recently launched Android App Store after its distribution terms and profit sharing requirements were revealed. The post, which was signed by "The IGDA Board of Directors," lists serious concerns the trade group has with the terms Amazon wants developers to accept before selling an app. Speaking to developers, the IGDA warned that Amazon reserves the right to control the pricing of games and the right to pay "the greater of 70 percent of the purchase price or 20 percent of the List Price."
The open letter lists five scenarios that developers might face if they sign up with amazon:
1. Amazon suddenly creating steep discounts for a significant proportion of its catalogue.
2. Being forced to choose between Amazon and other markets over promotions.
3. Creating a precedent for terms that will make minimum list prices irrelevant.
4. Steep discounts for niche products that significantly reduce a product’s revenue potential.
5. Discounting of hit titles when they are already selling well at a higher price.
The IGDA claims that under Amazon’s current terms the online retailer has little incentive not to use a developer’s content as a weapon to capture market share from competing app stores – because it has the power to lower the price of an app on a whim.
You can read the entire thing on the IGDA blog.