Meta rolls out a test for some creators to sell virtual items and effects in Horizon Worlds, which will take a 25% cut of any sale after app store fees
Horizon Worlds will take a 25 percent cut of any sale after app store fees — Meta is testing new features to let creators …
The Verge
Context & Ripple Effects
The initial creator-commerce test made Meta a second toll collector after app-store fees. Subsequent coverage put the combined bite at as much as 47.5% of a Horizon Worlds transaction, turning a product-monetization feature into a dispute over platform economics.
That dispute quickly gave Apple grounds to challenge Meta's criticism of App Store commissions. Later complaints about Quest Store fees show the issue extended beyond Horizon Worlds to Meta's wider developer relationship.
First-order effects
Selected Horizon Worlds creators can begin selling virtual items and effects, while Meta receives a 25% share after applicable app-store charges.
Creators' net proceeds are immediately determined by two platform layers: the app store's fee and Meta's Horizon Worlds cut.
Second-order effects
Apple's own commission becomes central to the economics of Horizon Worlds sales, giving it a concrete basis for its public criticism of Meta's fee posture.
If Meta extends Horizon Worlds across more endpoints, as it later did through web, Android, and iOS availability, creator economics will be shaped by both Meta's rules and each distribution channel's payment terms.
The pattern points to virtual-world platforms competing for creators through access and incentives while retaining control over the transaction layer and its take rate.
The trend: Immersive-platform operators are building creator economies around virtual goods, with distribution fees determining how much value creators retain.
@TechCrunch @asilbwrites They should test out making an app people actually want to use *cymbal crash*
@brianjjackson
Brian Jackson on x
Believe them when they start talking about the revenue share model. Meta knows it is racing against decentralized metaverse marketplaces. If it loses, it won't be able to win it back. https://twitter.com/...
@mixedrealitytv
Sebastian Ang on x
This is pure comedy gold! Meta will keep 47% of the profit creators make in Horizon Worlds. And the remainder is not taxed yet of course :) https://uploadvr.com/... #notmymetaverse
@oculos410
@oculos410 on x
This is huge.... 😳😳😳😳 😳 https://twitter.com/...
@alexdchandler
Alex Chandler on x
A month after I post “Twitter's my favorite,” I'm invited to host a talk with Mark Zuckerberg. 😅 I guess they didn't check my tweets. Joking aside, this was a huge honor. Mark's incredible & really shows he cares about the @HorizonWorlds community! 🎉😁 https://www.youtube.com/...
@jonvirtual
Jon on x
Devs: 30% is too much to pay for a storefront when we do 99.9% of the work and you don't even do marketing for us! Meta: Hold my skull goblet of dev tears... https://twitter.com/...
@alexeheath
Alex Heath on x
Horizon, the closet thing Meta has to an actual metaverse product right now, will let creators sell virtual items, mimicking the way Roblox and Rec Room make $$$. Interesting, Horizon's cut of purchases is 25% of whatever is left AFTER an app store fee https://www.theverge.com/..…
@ericpresidentvr
@ericpresidentvr on x
WOW a 30% Meta cut a 25% Horizon cut of the remainder oh and don't forget that 10-40% tax on the remainder when tax season comes along World building is HARD and time consuming WOOF https://twitter.com/...
@iainmacl
Iain MacLaren on x
just say no. leave this empty, vacuous ‘world’ for bots, hate merchants, and ego-driven avatars and the rest of us can get on with making the real world a better place...we've got our work cut out, but we'll lose everything if we fall into that black hole of mediocrity. https://t…
@alexeheath
Alex Heath on x
So on the Quest headset (the only platform Horizon is on now), Meta is taking 47 cents of every dollar spent on purchases. That is a lot! But with Horizon soon coming to mobile phones and possibly game consoles, I can see why Meta would want to be consistent with the take rate.
@slhamlet
Wagner James Au on x
Meta opens up its metaverse platform to user-generated content sales, but takes nearly half (!) the revenue. Seems way too early to launch a marketplace, as Horizon doesn't have much of an active community. Also. why take huge losses on Quest sales but gouge user creators? https:…
@ballmatthew
Matthew Ball on x
@alexeheath Not a lot by Roblox comps, which keeps 50 cents on all platforms, and roughly 70 cents after iAP
@ernestle
Ernie on x
25% cut AFTER App Store fees? Yikes https://twitter.com/...
@boztank
@boztank on x
The metaverse will unlock tremendous opportunities for all kinds of creators. This is an early first step toward our long-term vision of a robust digital economy where creators can earn a living and people can find compelling goods to purchase https://twitter.com/...