Microsoft reduces its revenue from Windows games
Working a company Microsoft is revolutionizing the world of PC gaming today by drastically reducing the amount of revenue it generates from games through Windows.
And theLowered The software giant had its share from 30 percent to only 12 percent from August 1, in an apparent attempt to compete with Steam and lure developers and studios to bring more computer games to its store.
“Game developers are at the heart of delivering great games to our players, and we want them to succeed across our platforms,” the company said. “Sharing clear profits, without restrictions, means that developers can bring more games to more players and achieve greater commercial success by doing so.
These changes affect PC games only, not Xbox games in the Microsoft Store.
Although Microsoft has not explained why it has not reduced the 30 percent required by sales of Xbox games, it is likely that it is because the platform’s business model is completely different from the computer.
Microsoft, Sony and Nintendo are supporting hardware to make the platforms more accessible to everyone, offering marketing deals in exchange for cutting software sales by 30 percent.
Microsoft’s new cut on the PC side is significant, and it matches the same revenue split that Epic Games is providing PC game developers with as more pressure is being put on Valve to downgrade the Steam store.
Valve still gets 30 percent of the sales on its Steam store, which drops to 25 percent when sales reach $ 10 million, and then 20 percent for each sale after $ 50 million.
Despite this massive revenue cut, Steam still dominates market share among developers, but not many believe the 30 percent fee is fair.
And a recent survey of 3,000 gaming industry professionals found that most game developers don’t think Steam should get 30 percent, and Microsoft’s move increases the pressure on Valve even more.
Microsoft and Epic Games have struggled to convince game developers to list games on their stores to compete with Steam.
Epic Games experimented with exclusive offers to lure developers, but a large part of Microsoft’s attempts were related to forcing game developers to use UWP in the past, and the Windows Store app that exists today.
Microsoft began supporting traditional win32 games in its store two years ago, but this change alone did not help the Windows Store compete with Steam.
The 12 percent cut could entice more developers to list their games on the Microsoft Store, especially if the company can improve the experience for end users.