Tuesday , June 22 2021

Microsoft cuts commission on PC games in its download store – ICT News



Game makers no longer have to return thirty percent of their revenue to the Microsoft Store. By applying this price reduction, Microsoft seems to increase competition on platforms like Steam.

Anyone who places a PC game in the Microsoft Store download store no longer has to pay for the 1is August that 12 percent commission on their income. This is a serious drop of 30 percent previously required by Microsoft and just in the download platform world.

It sounds like an attempt to increase competition on the Steam download platform and get publishers to put more games in the Microsoft Store. “Developers are the foundation of great games that we want to bring to our players, and we want them to find success on our platform,” said Matt Booty, head of Xbox Game Studios at Microsoft, in a statement. For clarity, these are PC games here, not Xbox console games.

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By implementing this reduction, Microsoft is following a broader trend of reducing commissions paid for download platforms. Game publisher Epic Games, the company behind the popular Fortnite title, launched three years ago with the Epic Games Store, its own PC download store and the first formidable competitor. From Steam. Epic demanded 12 percent commission, which was significantly less than the 30 percent of its rival.

A year later, Epic Games literally hired Google and Apple in particular, to encourage them to reduce the amount of their commission in the Google Play and App Store app stores. The company is also trying to get satisfaction by bringing various lawsuits.

These trials are far from over, but the campaign seems to be bearing fruit. That Google announced last month that it would reduce the commission in the Play Store to 15 percent. And already at the end of last year, Apple made a similar announcement. The two companies seem to realize that ‘a third of the revenue skimming’ does not look good, especially against smaller developers.

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That said, the 30 percent seems to be the norm again and again. Not just for physical stores, but also for console-oriented platforms. Manufacturers such as Sony, Microsoft and Nintendo typically develop and sell their consoles at a loss, assuming they are largely compensating for game sales. This means that the commission amount is not yet ready to be reduced.

What about Steam? The platform charges a 30 percent commission on the first ten million dollars of sales, a rate that tends to decrease on larger volumes. Steam is currently the main platform for downloading PC games with titles firmly established.

Anyone who places a PC game in the download of the Microsoft Store will not have to pay more than 12 percent commission on their earnings from August 1st. This is a serious drop from the 30 percent previously requested by Microsoft and just in the download platform world, and seems like an attempt to increase competition on the Steam download platform. And encourage publishers to put more games in the Microsoft Store. “Developers are the foundation of great games that we want to bring to our players, and we want them to find success on our platform,” said Matt Booty, head of Xbox Game Studios at Microsoft, in a statement. For the sake of clarity, these are PC games, not Xbox console games, and in applying this reduction, Microsoft is following a broader trend of reducing commissions paid for download platforms. Game publisher Epic Games, the company behind the popular Fortnite title, teamed up three years ago with the Epic Games Store, its own PC game download store and the first formidable competitor. From Steam. Epic demanded 12 percent commission, which was significantly less than its 30 percent competitor. Google Play and App Store app stores. The company is trying to get satisfaction by filing several lawsuits, but these lawsuits are far from over, but the campaign seems to be bearing fruit. That Google announced last month that it would reduce the commission in the Play Store to 15 percent. And already at the end of last year, Apple made a similar announcement. Both companies seem to realize that ‘a third of the revenue’ does not look good, especially with smaller developers, but 30 percent seems to be the norm again and again. Not just for physical stores, but also for console-oriented platforms. Manufacturers such as Sony, Microsoft and Nintendo typically develop and sell their consoles at a loss, assuming they are largely compensating for game sales. This means that the commission amount is not yet ready to go down, so what about Steam? The platform charges a 30 percent commission on the first ten million dollars of sales, a rate that tends to decrease on larger volumes. Steam is currently the main platform for downloading PC games with titles firmly established.




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