Microsoft cuts its commission on game sales to 12% from August

Microsoft is reducing the commission on game sales to 12 percent from 30 percent from August 1 as part of the strategy to attract developers and studios to bring more PC games to its store.
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These changes will only affect PC games and not Xbox console games in Microsoft’s store.

“As part of our commitment to empower every PC game creator to achieve more, starting on August 1 the developer share of Microsoft Store PC games sales net revenue will increase to 88 percent, from 70 percent,” Matt Booty, head of Xbox Game Studios at Microsoft, said.

Microsoft is not reducing the 30 percent commission on Xbox game sales. This is because the console business model is entirely different from PC, The Verge reported.

Microsoft, Sony and Nintendo subsidise hardware to make consoles affordable, and offer marketing deals in return for a 30 per cent cut on software sales.

“Game developers are at the heart of bringing great games to our players and we want them to find success on our platforms,” Matt Booty said.