Microsoft Is Writing Checks to Fill Out Its App Store

By JENNA WORTHAM and NICK WINGFIELD
April 5, 2012

Nowadays, cellphones are all about apps. And Microsoft is so 
determined to have lots of brand-name apps for its Windows Phone app 
store that it is willing to pay for them.

All an app maker has to do is sign on the dotted line.

After years of struggling in the phone market, Microsoft teamed up 
with Nokia last year to challenge the dominance of Apple's iPhone and 
Google, which makes the Android operating system. The latest fruit of 
their collaboration is a gleaming machine called the Lumia 900, which 
goes on sale in the United States on Sunday and is considered to be 
the first true test of how well the partnership will fare.

But the hundreds of thousands of apps that run on Apple and Android 
devices will not work on phones like the Lumia 900 that use 
Microsoft's Windows Phone software. And many developers are reluctant 
to funnel time and money into an app for what is still a small and 
unproved market. So Microsoft has come up with incentives, like 
plying developers with free phones and the promise of prime spots in 
its app store and in Windows Phone advertising.

It is even going so far as to finance the development of Windows 
Phone versions of well-known apps - something that app makers 
estimate would otherwise cost them anywhere from $60,000 to $600,000, 
depending on the complexity of the app. The tactic underscores the 
strong positions of Google and Apple, neither of which have to pay 
developers to make apps.

When Microsoft offered to underwrite a Windows Phone version of 
Foursquare, the mobile social network, Holger Luedorf, Foursquare's 
head of business development, did not hesitate to say yes.

...

http://www.nytimes.com/2012/04/06/technology/to-fill-out-its-app-store-microsoft-wields-its-checkbook.html

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