Microsoft Undercuts Steam With 12% Revenue-Sharing Agreement

Microsoft today announced that it is reducing its revenue share for games on the Windows Store from the industry standard of 30% to just 12%. 1. The announcement is a clear shot at Steam, which has long dominated the PC gaming space and still demands 30% from game publishers. Microsoft joins Epic Games at the 12% mark, overhauling its business model to apply more pressure on Steam.

The new revenue-sharing agreement is a bid to attract developers to the Microsoft Store.

While the announcement looks like a few multibillion-dollar corporations pushing it out for the top spot, Valve has lost a lot with game developers and publishers. A recent GDC poll showed that only 3% of participants agreed with the 30/70 split used across the industry. Platforms such as Google Play and the Epic Games Store have combated the problem by reducing the deduction after a certain amount of revenue or simply reducing it simultaneously. Steam has a similar program after generating more than $ 10 million in software sales, but it is still one of the most expensive revenue-sharing agreements in the space.

Polls showed that 23%, a plurality of participants, thought the 10% revenue share was reasonable, while an additional 20% thought 15% was reasonable. When specifically asked about Steam, only 6% of developers said a 30% share was fair. As the GDC report states, “One wonders how long Valve and Steam can last at this premium rate.”

Microsoft hopes that it can attract more developers to the Windows Store by reducing Steam. “A clear, no-strings-attached revenue share means developers can bring more games to more players and find more commercial success by doing so,” said Matt Bootie, head of Xbox Game Studios, in a blog post.

The change is as much a reaction to Steam as it is to the epic game shop. Last year, the Epic Games store reached over 160 million users, and 36% of its PC game sales came from third-party titles. Like Platform Exclusive Fortnite, Borderlands 3, Godfall, And Tony Hawk’s Pro Skater 1 + 2 Last year was one of Epic’s most popular games, also suggesting that an aggressive revenue-sharing deal would attract big-budget titles.

Epic saw massive growth last year, suggesting that an aggressive revenue-sharing model works.

Microsoft will need to withdraw more money by hand, however, and the company knows this. Loot continues, “We know we still have a lot of work to do, but based on the feedback from both PC gamers and PC game developers, we feel that we are headed in the right direction for this community , In which we invest ‘re-create. “That work likely includes extensive support for traditional Win32 games on the Microsoft Store. Microsoft supports these games, although it still has its own UWP for most releases The format favors.

The hardest obstacle Microsoft needs to overcome, however, is part of the mind. The GDC survey cited above shows that most PC developers still make the most of their money through Steam, and although platforms such as the Epic Games Store are challenging that, Valve keeps the PC market. The Microsoft Store can attract developers with its new revenue-sharing program, but it also needs to attract gamers.

Windows: Xbox PC Gaming

Xbox is renewing its commitment to PC gaming, which could spur new programs. It is announced today that the hot anticipated Hello infinite Will support cross-play and cross-progress on the Xbox platform and PC. The game is also debuting on the Xbox Game Pass, and the Game Pass continues for the PC roster to entice new players.

In addition, Microsoft needs to consider players who are already on Steam. Many players have hundreds, if not thousands, of digital-only titles, and there is no clear way to access them, so Steam should fall out of favor, with many players holding onto platforms that PC is synonymous with gaming.

Microsoft has no plans to reduce revenue share on Xbox. Sony and Microsoft still maintain a 30% revenue share on their respective platforms, although in the console and closed ecosystem the figure comes with factor one.

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