Starting August 1, Microsoft will cut revenue from PC game sales through the Microsoft Store in half, from 30% to 12%, which means more money for developers and less money for Microsoft. This revenue share is 12/88, aligning the Microsoft Store with the Epic Games Store.
PC gaming market leader Steam still has a 30% share (for more profitable games, the ratio drops to 25% and then 20%).
There is no suggestion that Microsoft will change the revenue from game sales on the Xbox console. This is not surprising, because console hardware is generally sold as a loser, while sales of games, add-ons, and subscriptions are generally used for profit. Also, there is no imminent pressure on the console space to change the 30% cutout adopted by all major rig holders.
“Game developers are at the heart of bringing great games to our players, and we want them to find success on our platforms,” Xbox game studios boss Matt Booty wrote in a blog post today.
“A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so. “Booty added that the Microsoft Store was being retooled, with a focus on “improved install reliability and faster download speeds” to roll out over the next few months.
As Microsoft hopes to expand Xbox Game Pass to more devices, today’s news seems to push for better services on PCs. A more attractive revenue share may encourage more PC developers to enter the Microsoft Store, which in turn means there will be more games on the PC version of Xbox Game Pass and more sales of additional content, even if reduced by 12%.