Before the announcement, PC Xbox developers were getting the industry 70/30 standard cut on the Microsoft Store like on Steam. With 70 percent of net revenue going toward the developer and the other 30 percent going toward Microsoft, developers will now be getting a 88 percent cut starting in August. The move is a part of Microsoft’s commitment to empowering PC creators on the Microsoft Store.
“The developer share of Microsoft Store PC games sales net revenue will increase to 88%, from 70%. A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so,” Xbox Game Studios head, Matt Booty said in an Xbox Wire post.
The paradigm shift to net revenue for PC developers is not exactly an original idea as the 88/12 revenue split is the same as the Epic Game Store. When the Fortnite developer launched its PC Store back in December of 2018, one of the main selling points of the new PC storefront was that developers would get an 88/12 revenue split. While the move to get into the PC market started out as a way to combat Steam’s revenue cut for PC developers, the Fortnite developer brought Apple into the revenue share argument last year This led to Apple removing Epic from accessing development tools on its platforms. Both companies have dealt each other with lawsuits with an antitrust trial going to court in Oakland, California on May 3rd.
While the revenue share move on PC is news, no information was given if such a move is coming to Xbox’s console business. Microsoft has invested a lot of resources to increasing their commitment to PC gaming and blurring the lines of PC and console for the Xbox brand.
“A big part of our role as a platform holder and game publisher is to connect players with games no matter where they play. Over the last 18 months we’ve launched games on PC like Age of Empires II and III DE, Gears Tactics, Wasteland 3, Minecraft Dungeons, and Microsoft Flight Simulator, many of which topped the Steam charts at launch,” Xbox Game Studios head, Matt Booty said. “We’re looking forward to delivering more PC content, including Age of Empires IV, later this year.”