Whether or not you think that the lawsuit in the Epic VS Apple battle is justified, it does bring to attention how much companies are taking from developers for games sold on their platforms, or from in-app purchases. The industry standard has been 70-30 for a while now, meaning that developers keep 70% of all proceeds, while 30% goes to the company that’s hosting their game, whether it be Steam, the Microsoft Store, the App Store, Google Play, and so on.However, Epic is one of the few companies bucking that trend by taking a 12% cut, meaning that developers get 88%. This is a model that Microsoft will now be adopting for its Microsoft Store. The Microsoft Store is arguably not quite as popular when it comes to apps or games on the PC as there are many much more viable alternatives.
However, dropping the cut they take down to 12% could encourage developers to start using their store more. According to Sarah Bond, Microsoft’s head of game creator experience & ecosystem, “Starting on August 1, the developer share of Microsoft Store PC games sales revenue will increase to 88%, from 70%. Having a clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.”
The Microsoft exec adds, “All this to help reduce friction, increase the financial opportunity, and let game developers do what they love: make games.” We’re not sure if Microsoft’s decision could prompt other platforms to rethink their cut, but it’s not a bad place to start.
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