What Percent Does Microsoft Take from Games?
Microsoft’s revenue-sharing model for games on its platforms has been a topic of interest for gamers and developers alike. In recent years, the company has made changes to its policies, which has led to a shift in the way it takes a cut from game sales. In this article, we’ll dive into the details of Microsoft’s revenue-sharing model and explore what percentage the company takes from games.
Current Revenue-Sharing Model
As of August 2021, Microsoft’s revenue-sharing model for games on its platforms is as follows:
- For PC games, Microsoft takes a 12% cut from game sales.
- For Xbox games, Microsoft takes a 88% cut from game sales, with the remaining 12% going to the developer.
Historical Context
Prior to August 2021, Microsoft’s revenue-sharing model for Xbox games was 70% for the developer and 30% for the company. This model was in place for many years, but in 2021, Microsoft announced that it would be changing its revenue-sharing model to 88% for the developer and 12% for the company.
Why the Change?
Microsoft’s decision to change its revenue-sharing model was likely driven by a desire to attract more developers to its platform and to increase the overall quality of games available on Xbox. By taking a smaller cut from game sales, Microsoft is able to incentivize developers to create more games for its platform, which in turn benefits the company by increasing the overall number of games available.
Impact on Developers
The change in Microsoft’s revenue-sharing model has had a significant impact on developers. For many developers, the 12% cut from game sales is a significant increase in revenue, which can help to offset the costs of developing and publishing a game. Additionally, the change in revenue-sharing model has made it more attractive for developers to create games for Xbox, which can help to increase the overall quality and diversity of games available on the platform.
Comparison to Other Platforms
Microsoft’s revenue-sharing model is different from that of other gaming platforms. For example, Steam, a popular digital distribution platform for PC games, takes a 30% cut from game sales. Sony’s PlayStation platform takes a 30% cut from game sales, with the remaining 70% going to the developer.
Conclusion
In conclusion, Microsoft’s revenue-sharing model for games on its platforms is as follows: 12% for PC games and 88% for Xbox games. The company’s decision to change its revenue-sharing model was likely driven by a desire to attract more developers to its platform and to increase the overall quality of games available on Xbox. The change in revenue-sharing model has had a significant impact on developers, making it more attractive for them to create games for Xbox.