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Microsoft is lowering commission for game creators in Microsoft Store
Microsoft is lowering its 'tax' on developers of PC games sold through the Microsoft Store, the company writes on its site.
From August 1, developers will no longer pay 30 percent of their revenues to Microsoft, but 12 percent. From that moment on, 88 percent will go to the game makers instead of 70 percent. For the time being, it only concerns developers who make PC games. This way, developers will take 88% of the net income from sales of PC games compared to the previous 70% they had. That is, almost 90% of the profits from the games will go to the developer.
Microsoft is not the first to lower this commission. The company Epic, which not only makes the game Fortnite but also has its own online store in which it sells PC games, also charges a 12 percent fee. Microsoft says it will cut its commission because it will be able to be successful on the Microsoft Store.
Competitor Valve, which owns the store Steam, still asks 30 percent of the developers. That percentage decreases as more copies are sold. After a developer earns $ 10 million ($ 8.26 million) on a game, the fee becomes 25 percent, after $ 50 million, the fee becomes 20 percent for each sale.
“As part of our commitment to empower all PC game creators to achieve more, beginning August 1, developers' share of Microsoft Store PC game net sales revenue will increase 70% at 88%. A clear and untethered revenue share means that developers can bring more games to more players and achieve greater commercial success by doing so, ”stated the company via the Xbox news blog .
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waltc3
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Joined: 2014-07-22
Senior Member
Posts: 1377
Joined: 2014-07-22
#5909175 Posted on: 05/02/2021 01:10 AM
Glad to see Microsoft stepping up to the plate. What the PC Online gaming distribution markets need is fierce competition. EPIC was the first one to realize that it doesn't do a reseller much good to cut his commissions by 22% to developers if end user customers do not also get some sort of concomitant reduction in purchase prices. For instance, a Microsoft or EGS developer gets a reduction in his commission of 18%, discounts his software to his customers by 10%, and still comes out 8% ahead of where he is today with Steam! (No exclusives required. That was only something Sweeney felt he had to do to break into the online market--he cannot continue that, of course--and neither can developers.) Personally, I prefer GOG. No DRM, and no compromise on that issue; and I get my own installable copy of every game I own on GOG. But if I can buy a game cheaper somewhere else, I may just do that.
Glad to see Microsoft stepping up to the plate. What the PC Online gaming distribution markets need is fierce competition. EPIC was the first one to realize that it doesn't do a reseller much good to cut his commissions by 22% to developers if end user customers do not also get some sort of concomitant reduction in purchase prices. For instance, a Microsoft or EGS developer gets a reduction in his commission of 18%, discounts his software to his customers by 10%, and still comes out 8% ahead of where he is today with Steam! (No exclusives required. That was only something Sweeney felt he had to do to break into the online market--he cannot continue that, of course--and neither can developers.) Personally, I prefer GOG. No DRM, and no compromise on that issue; and I get my own installable copy of every game I own on GOG. But if I can buy a game cheaper somewhere else, I may just do that.
Astyanax
Senior Member
Posts: 13273
Joined: 2018-03-21
Senior Member
Posts: 13273
Joined: 2018-03-21
#5909210 Posted on: 05/02/2021 08:39 AM
Everything you just thought, doesn't work in reality.
Glad to see Microsoft stepping up to the plate. What the PC Online gaming distribution markets need is fierce competition. EPIC was the first one to realize that it doesn't do a reseller much good to cut his commissions by 22% to developers if end user customers do not also get some sort of concomitant reduction in purchase prices. For instance, a Microsoft or EGS developer gets a reduction in his commission of 18%, discounts his software to his customers by 10%, and still comes out 8% ahead of where he is today with Steam! (No exclusives required. That was only something Sweeney felt he had to do to break into the online market--he cannot continue that, of course--and neither can developers.) Personally, I prefer GOG. No DRM, and no compromise on that issue; and I get my own installable copy of every game I own on GOG. But if I can buy a game cheaper somewhere else, I may just do that.
Everything you just thought, doesn't work in reality.
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I think Microsoft's idea with Gamepass is the best shot so far to actually have a chance going up against Steam.
But I don't ever see Steam being challenged for real, gamers simply opt for that since they have their 15+ year old accumulated libraries and want to keep it in the same place when possible. It was obviously easier for physical stores to compete with oneanother since the price was the only difference no matter where you bought the game.
And I do truthfully believe that if Epic thought that they could make a dent on Steam without paying for all the exclusives, they would absolutely do so. They're just as greedy as every other business and if they decide to waste money it's because their management has deemed it the most viable strategy.
I don't remember every single good/bad thing Valve has done, but it sure feels like the standards back then was lower and now Microsoft/Epic/Ubisoft are judged harsher for their methods. I do remember Counter Strike being a mod available for everyone before Valve bought it and made it exclusive to Steam, as well as thinking it wasn't morally right that Valve made a standalone game of Dota that actually was popular in WC3. Valve is actually the reason Blizzard explicity says every map you create is their IP.