--- title: "China Post Securities: Google officially announced a reduction in the Google Play commission rate, focusing on high-quality overseas game developers" type: "News" locale: "en" url: "https://longbridge.com/en/news/279716427.md" description: "China Post Securities released a research report stating that Google announced significant changes to the Google Play Store, including reducing the service fee from 30% to 20% or lower, and allowing third-party payments and app store entries. This adjustment will significantly benefit overseas game developers, enhancing their profit margins and operational autonomy. It is expected that by 2025, the revenue from China's self-developed games in the overseas market will reach USD 20.455 billion" datetime: "2026-03-19T03:54:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279716427.md) - [en](https://longbridge.com/en/news/279716427.md) - [zh-HK](https://longbridge.com/zh-HK/news/279716427.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/279716427.md) | [繁體中文](https://longbridge.com/zh-HK/news/279716427.md) # China Post Securities: Google officially announced a reduction in the Google Play commission rate, focusing on high-quality overseas game developers According to the Zhitong Finance APP, China Post Securities released a research report stating that Google (GOOGL.US) announced significant changes to the Google Play Store, including the opening of third-party payments and the entry of third-party app stores, and reducing the service fee from 30% to 20% or lower. This adjustment brings significant benefits to overseas game developers, as mid-to-heavy mobile games that rely on in-app purchase revenue will benefit from reduced commission pressure, potentially improving profit margins. At the same time, the introduction of a third-party payment system enhances developers' operational autonomy, while the compliant entry of third-party stores will lower the installation threshold for users, promoting the revaluation of platforms like TapTap. ## Key Points from China Post Securities: **Event** On March 4th local time, Google announced significant changes to the Google Play Store: first, it opened third-party payments and third-party app stores, while the commission logic was changed from a fixed percentage to "settlement fee + service fee," allowing third-party methods to avoid a 5% fixed settlement fee; second, the service fee was reduced from 30% to 20% or lower, with the service fee for new user installations of IAP reduced to 20%, lowered to 15% for those joining the upgrade plan, and reduced to 10% for regular subscription services. Additionally, using Google’s official payment will still incur a 5% settlement fee. **High-quality overseas game developers welcome significant benefits, likely to improve profit margins and gain greater operational autonomy** Thanks to the stable performance of mature products and the successful launch of new products, the overseas revenue of domestically developed games in China has maintained steady growth. According to the Game Working Committee, by 2025, the overseas market revenue of China's self-developed games is expected to reach USD 20.455 billion, with the scale exceeding RMB 100 billion for six consecutive years. With Google reducing the commission rate, the firm believes this will bring the following changes to overseas game developers: 1) The pressure of IAP commission decreases, and the improvement in developers' profit margins is expected to invigorate the game supply market. Under the traditional Google Play model, a large portion of game IAP revenue had to bear about a 30% channel share. After the new policy is implemented, the standard IAP service fee will be reduced to 20% or lower. Therefore, overseas developers of mid-to-heavy mobile games (SLG, RPG, card games, etc.) that rely on IAP revenue will significantly benefit. For example, Century Huatong, with its game "Whiteout Survival" achieving over 100 million global downloads, has topped the revenue chart for Chinese mobile games overseas for over ten consecutive months. This high-revenue heavy game will achieve considerable profit conversion, providing motivation for game upgrades and new product supply in the future. 2) The upgrade of the payment system allows developers to recharge through official websites or third-party payment channels, enhancing operational autonomy and further reducing costs by bypassing the Google payment system. **Opening third-party app stores, the channel value of game third-party platform companies is expected to be revalued** Google launched the "Registered App Store" program, allowing third-party stores to enter the Android system compliantly. This means these platforms no longer need to go through complex "sideloading" installations, significantly lowering the installation threshold for users, which will usher in a period of user growth dividends. The firm believes that for third-party gaming platforms, this is expected to enhance channel bargaining power and competitiveness, allowing them to win through differentiated advantages. For example, TapTap, under Xindong Company, adopts a non-participation revenue-sharing model, which is expected to attract more developers to join, enrich community content, and enhance user appeal **Investment Advice**: It is recommended to pay attention to Century Huatong, Giant Network, Kaiying Network, Shenzhou Taiyue, 37 Interactive Entertainment, Glacier Network, Perfect World, etc., which have a high proportion of overseas game revenue; as well as companies with game third-party platforms such as Xindong Company, Tencent Holdings, and NetEase. **Risk Warning**: Risks of Google's policies not meeting expectations, risks of intensified industry competition from manufacturers like Apple, and risks of overseas game performance not meeting expectations, etc ### Related Stocks - [Roundhill GOOGL WeeklyPay ETF (GOOW.US)](https://longbridge.com/en/quote/GOOW.US.md) - [Alphabet Inc. 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