Microsoft Responds to Royalties Cut Rumour

Earlier this morning we ran a well-sourced rumour about Microsoft halving the royalties they pay to indie developers for the games they create for the Xbox Live Arcade.

Microsoft just responded to our request for comment with this statement:

Xbox LIVE Arcade has long been known as the premier destination for digitally distributed original and classic games - making it a very appealing platform for game developers. We don't disclose details on our business contracts, but what we can tell you is that we work closely with all of our partners to provide the Xbox 360 community with the best entertainment possible while making publishing a title on XBLA an attractive prospect.

While not really a confirmation nor a denial, it does sound as if they are reacting to what our multiple indie developer sources told us was fact. We will be meeting with some of the XBLA indie development folks with Microsoft later today and will make sure to follow up with them about this issue.

Stay tuned.

Microsoft Cuts Indie Royalties in Half [Kotaku AU]


    PurpleSfinx's Kotaku page has long been known as the premier destination for digitally distributed comments - making him a very appealing commenter for some readers. He doesn't disclose details on opinions, but what he can tell you is that he works closely with a bullshit-o-meter when reading statements from large corporations like Microsoft, to provide the Kotaku community with his opinions on whether or not Microsoft are possibly trying to deny something without actually denying it, so that everyone will just ignore the fact that there's a decent chance they're ripping off smaller companies while making buying their products an attractive product.

    Seriously though, I'm going to take this as a confirmation... Microsoft aren't exactly known for supporting the little guy - in fact they are notorious for either buying or crushing him to death. Even for Microsoft this is quite possibly a new record for 'saying lots of words with no information at all'. Even if they didn't want to go into specifics like they say, they could have said 'We can't discuss specific business deals, but we promote an equal opportunity for all developers that make quality titles for the Xbox Live! Arcade' or something similar. And I'm no anti-Microsoft 'fan'boy - I have plenty of their stuff.

    Sorry for the double post here, but I just realised something - Screwing over independent developers and small start ups - even hobbyist groups - is not a good idea. Portal anyone?

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