When Epic Games launched its digital game store for PC in 2018, one of the big differentiators it had from Steam was that it only took a 12% reduction from every game sale. compared to Steam’s 30%. This has drawn a lot of developers to Epic’s store, and now Microsoft is copying that decision.
Posting on Xbox Wire, Matt Booty, Head of Xbox Game Studios, confirmed that as of August 1, “Developers’ share of net sales of Microsoft Store PC game sales will increase from 70% to 88% “. Microsoft sees this as an initiative to attract more developers to its store rather than one of the other popular digital game stores.
This is great news for developers in the short term; Offering them more money per sale without any additional work required is certainly appealing. But it could prove to be even more beneficial in the long run because of the pressure it puts on Valve. Steam continues to demand a 30% cut from every sale, which is now much more difficult to justify as Microsoft and Epic are taking 18% less. It could also see Steam starting to lose more new releases, as publishers and developers view Valve’s store as the expensive option, even though it is the most popular.
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Microsoft’s PC game store isn’t popular, but this reduction in revenue share, combined with rumors of a new app store being developed for Windows 10, could certainly spark a resurgence. Epic might not like that Microsoft is copying its revenue share percentage, but there’s always the option to lower it even further.
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