What you need to know
- Microsoft is boosting developer revenue shares to 88%.
- The company announced the move as a "no-strings-attached" boost on Thursday.
Just days ahead of Apple's legal battle with Epic Games, gaming rival Microsoft has announced it is reducing its PC game sales commission to 12%, giving developers an 88% share of the revenue.
Microsoft announced a bundle of upcoming changes today, with the developer commission changes certain to draw attention. As explained by our friends at Windows Central:
One of the biggest areas of contention in the game industry right now revolves around how much developers get paid. Epic is doing battle with Apple in court over its hefty store restrictions and deep revenue share scheme, which sees 30% percent of all cash spent on the store going straight into Apple's pockets. Epic Games has bucked industry trends by offering developers an 88% share on its own Epic Games Store, and now, Microsoft is following suit.
Matt Booty says that from August 1st, the developer share for PC game sales net revenue will increase to 88%, up from 70%. This is a "clear, no-strings-attached" revenue share, without any hidden caveats.
With a pre-installed user base of over a billion devices, it's not hard to see why developers will be pleased about this. As the report notes the move will put increasing pressure on Steam (who still charge a 30% cut) and Apple.
The 30% cut is one major bone of contention in the upcoming trial due to begin next week, with Epic arguing that Apple should allow developers and users access to alternative app stores on iOS that can set their own commission rates, guidelines, and make use of alternative payment methods.
Microsoft has previously said it supports Epic's fight with Apple and has clashed previously with the company over bringing its xCloud streaming service to iOS.