Microsoft Might Drastically Cut back the Xbox Retailer Charges

Developers could get a higher share of revenue by selling their games.

Confidential documents filed in the ongoing Apple vs. Epic Games case show that Microsoft has planned to cut Xbox Store fees to just 12 percent.

In the January documents, Microsoft's share of sales for both the Windows Store and the Xbox Store is given as 12 percent. A table in the document also mentions that "all games in CY21 will be postponed to 88/12.

Microsoft cutting Xbox Store fees to 12 percent could be a big deal

Microsoft could reduce the Xbox game store cut to just 12 percent, as that would mean game developers would get 88 percent of the revenue share. All other major stores, including Sony's PlayStation Store and Nintendo's online store, are reducing game sales by 30 percent.

The documents suggest that Microsoft reduced the Xbox Store itself to 12 percent in the 2021 calendar year. It is also mentioned that the Windows Store has a 12 percent share of sales for PC games, which Microsoft has already announced. However, that company's announcement made no mention of the Xbox Store.

When The Verge was contacted, a Microsoft spokesman said the company "currently has no plans to change revenue sharing for console games." Microsoft's plans for the Xbox Store may have changed since January, or it may not be ready to announce its reduced commission on digital game sales.

Related: Report: Windows 10 Getting a New App Store

Reduced Windows Store fees for PC games can come with one major limitation

The internal documents also indicate that Microsoft planned to reduce the Windows Store cut for games with a major limitation. In return for the 88/12 percent share of sales, she wanted streaming rights to be granted.

This would mean developers would need to make sure their games are available on xCloud in order to get the higher percentage of the revenue from their games' sales.

Related topics: Microsoft launches Xbox Academy to inspire budding game developers

Microsoft's announcement regarding reduced fees for PC games in the Windows Store says nothing about this clause. It is unclear whether or not the company enforced this clause. The changes are expected to take effect on August 1st. Perhaps only then will it be clear whether Microsoft has implemented this clause or not.

30 percent is the standard fees that most app store developers charge for hosting their apps and games. Recently, this fee has been heavily criticized and will be examined in more detail in the trial version of Apple vs. Epic Games, which is scheduled to begin in the first week of May.

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About the author

Rajesh Pandey
(114 articles published)

Rajesh Pandey started following the technology field right at the time when Android devices were mainstream. He closely follows the latest developments in the world of smartphones and what the tech giants are up to. He loves tinkering with the latest devices to see what they're capable of.

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