Microsoft announced today that it is cutting the revenue share for Windows Store games from 30% of the industry standard to just 12% starting Aug. 1. with Steam, the company has long dominated the PC gaming space and still claims 30% from game publishers. Microsoft joined Epic Games at 12%, putting greater pressure on Steam to overhaul its business model.
While this announcement sounds like a few billion-dollar corporations beat it to take the top spot, Valve has lost a lot of favor with game developers and publishers. A recent GDC poll shows that only 3% of participants agree a 30/70 rate is used across the industry. Platforms like Google Play and the Epic Games Store have solved this problem by either cutting the cut after a certain amount of revenue or just dropping it all together. Steam also had a similar show after the software generated more than $ 10 million in revenue, but it still holds one of the most expensive revenue sharing deals in the field.
The poll found that 23%, the majority of respondents, said that 10% of the revenue share is fair, while another 20% think 15% is fair. When asked specifically about Steam, only 6% of developers said 30% of the share is fair. As the GDC report put it, “one has to wonder how long Valve and Steam can hold this premium fee.”
Microsoft hopes that they can attract more developers to the Windows Store by cutting down on Steam. Matt Booty, head of Xbox Game Studios, said: “Clear, non-binding revenue sharing means developers can bring more games to more players and achieve commercial success. Bigger trade from that ” in a blog post.
This change responds as much to Steam as it is to the Epic Games Store. Last year, Epic Games Store has more than 160 million users and 36% of its PC game sales come from third-party titles. Exclusive platform like Fortnite, Borderlands 3, Godfall, and Tony Hawk’s Pro Skater 1 + 2 was also one of Epic’s most popular games last year, suggesting that an aggressive revenue sharing deal will attract big budget titles.
However, Microsoft will need to do more than split the money, and the company knows that. Booty continued, “We know we have a lot left to do, but based on feedback from both PC players and PC game developers, we think we’re on the right track for this community. with investments that we “are making. That work may include extended support for traditional Win32 games on the Microsoft Store. Microsoft supports these games, although it still favors its own UWP format for most releases.
However, the most difficult hurdle that Microsoft needs to overcome is mind sharing. The GDC poll mentioned above shows that most PC developers still make the majority of their money through Steam, and even though platforms like the Epic Games Store are challenging that, Valve still holds. PC market. The Microsoft Store might attract developers with its new revenue-sharing program, but it also needs to appeal to gamers.
Xbox is renew your commitment to PC gamingThis may promote new programming. Today it announced that Halo Infinite will support cross play and cross-play on Xbox and PC platforms. The game is also rolling out on Xbox Game Pass, and the Game Pass list for PC continues to grow, attracting new players to join.
Even with that, Microsoft needs to consider the libraries players already have on Steam. Many players have hundreds, if not thousands, titles that are digital-only and there is no obvious way to access them if Steam is out of favor, many players are holding the platform. has become synonymous with playing PC games.
However, Microsoft has no plans to reduce its revenue share on Xbox. Sony and Microsoft still maintain a 30% revenue share across their respective platforms, even though that number resides in the console and closed ecosystem that goes hand in hand.
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