Microsoft Cuts Indie Royalties in Half

News of Microsoft's democratisation of indie game development was overshadowed this week by an increasing discontent among established indie developers that the company was halving the royalties paid to them for future Xbox Live Arcade projects, several well-informed sources told Kotaku.

Several developers directly affected by the cut told Kotaku that the once generous royalty share of 70 percent given to them by the company was within the past few months cut down to 35 percent.

The move, some believe, may be tied to Microsoft's future reliance on the recently announced initiative to deliver games created using the company's XNA software package to Xbox Live users for a still undisclosed price.

At least one developer I spoke with said they were considering moving over to Sony and its Playstation Network in light of the cuts.

Microsoft has been contacted for comment, but has not yet replied. We'll make sure to update as soon as we hear word.

Update: Microsoft has responded, and you can see what they have to say here.


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