Report: Microsoft Could Drastically Reduce Xbox Store Fees

Designers could get a higher income share from the offer of their games.

Confidential documents submitted in the ongoing Apple vs. Epic Games case reveal that Microsoft has been planning to cut Microsoft Store on Xbox fees to just 12 percent.

The documents from January lists Microsoft’s revenue share as 12 percent for the Windows Store as well as the Xbox Store. A table in the document also mentions that “all games will move to 88/12 in CY21.”

Microsoft Reducing Xbox Store Fees Could Be a Big Deal

Microsoft reducing the Microsoft Store on Xbox cut for games to just 12 percent could be a big deal as this would mean that game developers would get 88 percent of the revenue share. All other major stores take a 30 percent cut on game sales, including Sony’s PlayStation Store and Nintendo’s online store.

The documents point to Microsoft reducing the Xbox Store cut to 12 percent in the calendar year 2021 itself. It also mentions the Windows Store moving to a 12 percent revenue share for PC games, which Microsoft has already announced. That announcement from the company, however, did not mention anything about the Microsoft Store on Xbox.

When reached by The Verge, a Microsoft representative said the organization has “no designs to change the income share for comfort games as of now.” Microsoft’s arrangements may have changed since January in regards to the Xbox Store, or it isn’t prepared to declare the diminished commission on the offer of advanced games at the present time.

Diminished Windows Store Fees Could Come With a Big Caveat

The inside archives likewise uncover that Microsoft was anticipating diminishing the Windows Store cut for PC games with a significant proviso. In return for the 88/12 percent income share, it needed the award of streaming rights.

This would imply that engineers needed to guarantee their games are accessible on xCloud to be qualified for the higher portion of the income from the offer of their games.

Microsoft’s declaration with respect to the reduced fees for PC games on the Windows Store doesn’t make reference to anything about this condition. It is hazy if the organization has gone on upholding this condition or not. The progressions are planned to become effective from 1 August. It is maybe really at that time that it will be clear if Microsoft has carried out this provision or not.

30% is the standard expenses that most application stores charge designers for facilitating their applications and games. Lately, this charge has been heavily reprimanded, and it will go under substantial examination considerably more in the Apple versus Epic Games preliminary, planned to begin from the principal seven day stretch of May.