Documents Reveal Microsoft Had Planned To Reduce Revenue Share On Xbox Store By 18% For Developers

In recent documents uncovered during the court case between Epic Games and Apple, it was revealed that Microsoft had intentions to make changes to its revenue shares on Xbox Store by 30%. Reported by TheVerge, the Xbox Store seemed set to overhaul the split between developers and themselves 70/30 to 88/12

The statement had "all games will move to 88 / 12 in CY21". While this plan would change console gaming, Microsoft would confirm that there were no plans to implement this change on the Xbox platform. While Microsoft will still reduce the revenue shares on Windows by 12% in an effort to compete with digital storefront giant Steam, perhaps they're hesitant to make this drastic a move on console. 

“We will not be updating the revenue split for console publishers,” says a Microsoft spokesperson. Microsoft, however, has not yet clarified if these plans were inaccurate or a change to their strategy was made. Throughout the Epic Games vs Apple case, Microsoft strongly takes Epic Games' side in the case after Apple slipped a new payment into the iOS version of Fortnite. Apple is being sued in an effort to prevent it from revoking access to iOS and MacOS, both which Fortnite and Unreal Engine utilize heavily to function. Microsoft stated Unreal Engine is "one of the most popular third-party game engines available to game creators". 

Currently, Microsoft, Nintendo, and Sony all take a 30% cut from digital games sold on their storefronts. Should Microsoft revisit these changes to its revenue shares, it could make the Xbox platform more desirable for third party developers to work with. Along with that, it would further secure xCloud stays ahead of other cloud streaming services Stadia and Amazon Luna. This potential maneuver wouldn't hit Sony or Nintendo immediately, but several years down the road when Microsoft places greater emphasis on Game Pass Ultimate and cloud services, the Xbox brand could suddenly be a real industry leader in gaming. 

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