Microsoft’s new Windows 11 just came out and people are going crazy over it. Windows 10 was supposed to be the last of the series of operating systems that they were going to create but after a long period of time, they have come back with a bang with their new Operating system that was launched a few days ago.
The features are all new and improved and they also brought along with the good news for the developers. The tech giant will allow them to use their own or a third-party commerce platform in their apps starting on July 28th. If they are going to do so then that means that the developers do not have to provide a cut to the Microsoft company, they can keep 100% of the revenue that they earn. This is indeed good news for the developers.
They used the term ‘app developers’ while making the statement. However, it was later confirmed by Microsoft that this zero percent cut is not applied to games as apps. Microsoft makes a lot of money from their game commissions and they are not going to let that amount of income just go.
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They admitted that they are going to lower the rates of the commission a little bit from the 1st of August but they are not going to absolutely forgo it. The revenue that they earn from the game commission allows them a lot of freedom in other fields like selling Xbox at a loss.
However, the lowered commission rate is still welcomed gladly by the game developers. It will also be beneficial to them in the long run. Microsoft has today made waves in the PC gaming industry by drastically reducing the percentage of sales it takes from Windows-based video games.
The software giant is clearly trying to compete with Steam and persuade developers and studios to bring more PC games to its Microsoft Store by decreasing its share from 30 percent to just 12 percent as of August 1st.
For Microsoft’s Xbox Game Studios chief Matt Booty, “game developers are at the heart of bringing fantastic games to our players,” and the company hopes that developers will find success on Microsoft’s platforms.
If there were a transparent, no-strings-attached revenue split, more game creators would make their games available to a wider audience. This only applies to PC games, not Xbox console games, in the Microsoft shop.
Microsoft hasn’t said why it isn’t cutting its 30 percent cut of Xbox game purchases, but the company’s approach to making money from consoles is very different from that of personal computers.
Companies like Microsoft, Sony, and Nintendo reduce the price of consoles by subsidising hardware and offering marketing partnerships in exchange for a thirty percent cut of software sales.
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Microsoft’s new PC cut is significant, since it brings the company in line with the revenue share that Epic Games pays PC game developers and increases the pressure on Valve to lower its cut on the Steam store.
In spite of this, Valve keeps a 30% share of all Steam store sales, dropping to 25% once annual Steam store sales reach $10 million, and then to 20% once annual Steam store sales reach $50 million.
