Microsoft’s zero percent reduction on Windows apps doesn’t extend to games
When Microsoft unveiled its new store design for Windows 11, there was also great news for developers. The tech giant will allow them to use their own commerce platform or a third-party commerce platform in their apps from July 28. If they choose to do so, the business will no longer experience a reduction in their income and will be able to keep 100% of their income. In its announcement, Microsoft specifically mentioned “application developers”. Turns out it’s because only they can take advantage of the incentive: The company has confirmed that the revenue sharing exemption does not apply to games.
Microsoft makes a lot of money from game sales and subscriptions like any other business that runs a digital platform. He even admitted he was selling Xbox consoles at a loss, knowing he would profit from a 30% commission from game developers. While Microsoft is unlikely to give up gaming commissions entirely, it will be applying lower prices for games starting August 1. It will only take 12% of a developer’s revenue instead of 30, at least when it comes to the PC versions sold through their store.
By lowering its commission rate, Microsoft is following Epic’s lead. Epic has achieved a 12% reduction in developer revenue since opening its own PC game store in 2018 and has been the most vocal critic of Apple’s 70/30 revenue sharing model.
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