Microsoft to take a smaller cut of revenue for PC games sold through the Microsoft Store

Starting August 1, Microsoft will take a smaller cut of revenue from PC sales of games listed on the Microsoft Store.

On that date, the developer share of Microsoft Store PC games sales net revenue will increase to 88%, from 70%.

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Microsoft calls this a “clear, no-strings-attached revenue share,” which it hopes will help developers bring more games to the store and find commercial success from doing so.

“We empower developers to decide how to deliver their work based on their creative vision,” said Microsoft’s head of Xbox Game Studios, Matt Booty. “We’re proud to empower all developers with the platform and services they need to execute their vision and provide exceptional experiences on PC.”

“At Microsoft, we are PC gamers. We love PC games and PC game developers. We want to do more to help empower creators to realize their dreams,” said Sara Bond, CVP, Head of Game Creator Experience & Ecosystem at Microsoft.

“By delivering great tools, publishing services and increasing the financial opportunity of making PC games, we can help game developers do what they love – make games.”

Recently, in a developer survey of over 3,000 game industry professionals, 3% of participants said that it’s fair for stores such as Steam and GOG to take 30% of their revenue. However, 43% of responses suggest that a 10% or 15% cut is more justifiable.

30% is the more common take from storefronts, but recently, Valve, Apple, and Google have changed things. Valve introduced a tiered revenue share system in late 2018,  which lowered how much the firm takes on larger titles. Apple and Google lowered revenue cuts to 15% on the first $1 million made by the developer.

The Epic Games Store takes a lower cut across the board with 12% of revenue taken out of the pot.

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