In an effort to interest the Windows 10 gaming community, Microsoft has just announced to reduce the revenue split it takes from game developers in Microsoft Store. This is reducing from 30% to 12%, and let the game developers keep the rest for them. Going to be effective from August 1st, this policy hopes to lure the gaming community and certainly put pressure on Valve’s Steam Store.
Microsoft’s New Plan For Attracting Game Developers
As Apple and Google are being pushed by mobile game developers to reduce their exorbitant store fees, Microsoft makes that happen for the PC community without being asked. In the latest move, the Redmond company announced to increase the developers’ share of game revenue from its Microsoft Store to 88%.
Previously, it was 70% for the game developers as Microsoft takes 30% of it. This proportion didn’t seem to work as Microsoft Store is neither popular nor flexible. Thus, in order to revamp it and attract the community of all kinds, we’ve learned that Microsoft would make policy changes, design upgrades, etc to the Store gradually.
While we expect the design changes to come with the big Windows 10 21H2 update later this year, policies have started to change, at least for the gaming community. Microsoft’s reduction of its cut is a big blow for the rivals, like Valve’s Steam Store, which takes 30% cut but still popular among the users.
Windows developers accept Steam’s monopoly because they have no better alternatives. It stores millions of PC games with adequate information and runs frequent offers to keep the community engaged. And this is what Microsoft is starting to do now. Also, it should be noted that the reduced cut was only for game developers on Windows 10, but not for the Xbox counterparts.
This is understandable as they both are different businesses, though in the same space. Announcing this decision, Microsoft’s head of Xbox Game Studios, Matt Booty said, “Game developers are at the heart of bringing great games to our players, and we want them to find success on our platforms.”