Microsoft Will Give More Revenue To PC Developers

Microsoft Will Give More Revenue To PC Developers
Image: Xbox

Game developers on the Microsoft store will soon get a greater cut of the profits, Microsoft announced today. The change comes at a time when many developers and storefronts are rethinking the way profits are split.

“As part of our commitment to empower every PC game creator to achieve more, starting on August 1 the developer share of Microsoft Store PC games sales net revenue will increase to 88%, from 70%,” Head of Xbox Game Studios Matt Booty wrote on the Xbox blog. “A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.”

The move is the latest in a bit of a sea change for game revenues. In a survey released yesterday by the Game Developers Conference, only 3% of respondents thought the once-standard 30% take by a platform was justified. The Epic Games Store broke onto the scene by notably only taking 12% of the revenue. Over the last year, both Apple and Google have lessened their cuts for games making under $US1 ($1) million. Steam, meanwhile, has held more or less firm on its 30% take, with the cut lessening the more money a game makes, a system that makes more money for larger, richer publishers, while penalising smaller indies.

The Xbox blog also discusses Microsoft’s future plans for PC, promising “more quality-of-life improvements to PC gamers, including improved install reliability and faster download speeds,” on its (let’s be honest: dreadful) PC storefront. I’ll believe it when I see it.

Comments

  • The change comes at a time when many developers and storefronts are rethinking the way that profits are split” because everyone is scrambling however they can to make the smallest possible change to their business models while still maintaining their monopoly, giving them a short term PR win, and maybe even helping a bit to head off some of Epic’s various lawsuits.

  • It’s even more meaningless when they’re cherry picking developers for Gamepass as well. They’re already taking a 20% hit to earnings by virtue of MS’s discount.

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