Microsoft to Increase Revenue Share For All PC Game Developers
Microsoft has just decided to increase the revenue share for all developers who publish their games on the Microsoft Store. This, in short, came out of the blue. It’s definitely a positive surprise — don’t mistake this for complaining — but we just didn’t see it coming.
Starting on August 1, Microsoft’s Cut Will Be Just 12% Instead of 30%
This is absolutely huge news for a myriad of different reasons, but chief among them is the fact that developers will be able to earn a noticeably larger sum of money for their work. And that, in an industry that has historically taken too big of a slice, is a mind-blowing shift in approach — and a highly positive one, to boot!
This decision will only affect PC games and those developers who decide to publish their creations on the Microsoft Store. In other words, Xbox isn’t included. While it would’ve been nice of Microsoft to apply the same approach to both platforms, it’s worth noting that they’re employing two vastly different business models, hence the differing distribution of revenue for developers.
PC gaming has grown ever more popular with the rise of free-to-play titles like Fortnite and Call of Duty: Warzone and it’ll only continue to grow and evolve as time goes on. It is the de-facto platform of choice for the vast majority of users. Gaming consoles come in at a close second, but there’s still a noticeable gap between them.
A Most Competitive Race
The fact that both Microsoft and Epic now charge less than Valve has created quite an interesting situation. It’s not exactly a “Mexican stand-off” but someone will have to budge sooner or later, and that’s probably going to Valve — they’re still charging 30% which effectively means they’re the only “bad guys” left.
Now sure, they do have a more layered structure in place, but it still leaves a lot to be desired. Their cut is lowered to 25% once sales hit the $10 million mark (and then 20% once the title generates $50 million in sales) but that’s still out of reach for most developers which means the smallest fish in the sea invariably end up with the shortest end of the stick.
Microsoft has been talking quite a lot about their “commitment to PC gaming” which, more often than not, would just be a bit of marketing fluff. In this case, however, they’re actually taking proactive steps towards making their platforms and services (which are already fantastic) all the more alluring. Either way, they deserve credit for the way they’ve handled things!