Microsoft may hit Sony and Nintendo by slashing publisher fees on Xbox consoles from 30% to 12% – media

Last week Microsoft Announces Commitment to PC Gaming and Reduced Commission for PC Game Publishers in Microsoft Store from 30% to 12%… The American corporation actually followed the path Epic Games, which has long opposed Steam and called for better conditions for developers and publishers on digital platforms.

From August 1, Microsoft will start keeping only 12% of the revenue from sales of each third-party PC game in the Microsoft Store, and the publisher or independent studio, respectively, will receive 88% of the amount.

However, according to leaked documents from Epic Games and Apple today, Microsoft intends to take a radical step and reduce the commission for developers to 12% not only on PC, but also on consoles of the Xbox family… This can dramatically increase the attractiveness of the Xbox in the eyes of third-party publishers.

Historically, Sony, Nintendo and Microsoft keep 30% of the sales of all other people’s games, and this bar has been unwavering for decades. It is the commission from sales of someone else’s software that brings the main income to the gaming divisions of Sony and Microsoft.

Even Epic Games isn’t opposed to leaving 30% of its console revenue to the big three, pointing out that console makers spend billions to design, manufacture and distribute specialized gaming hardware, and then live primarily on selling games.

An unexpected 12% cut in commission on Microsoft consoles would be like a revolution in the industry, observers say. And it only remains to imagine how this can affect other market participants in the long term.

The Verge adds that in a document dated January 2023, it was said that the corporation’s management is proposing to reduce the commission for PC publishers from 30% to 12% in exchange for giving Microsoft the rights to add games to the xCloud cloud service.

Journalists asked the representatives of the software giant whether the recent decision was made with or without this amendment, but did not receive a response.

The cloud race is just picking up steam, and Microsoft is one of its key entrants. Previously, publishers opposed NVIDIAwhich allowed streaming of user-purchased Steam games on servers GeForce NOW, and forced her to separately negotiate with them to support this cloud platform.

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In a comment to The Verge, Microsoft said it “currently” has no plans to change the distribution of revenue from sales of games on Xbox consoles.

This suggests that plans have been abandoned, plans have changed, or they are simply not ready to talk about them yet. The documents that have appeared on the network are dated January 2023.

Based on the table, the transition from 30% commission to 12% in the Microsoft Store on PC was planned in the first half of calendar 2023, but in the end, as officially announced, it will take place a little later – from August 1.

For Xbox consoles, the documentation also mentions the first half of 2023.

Read also: Sony Breaks All Revenue & Profit Records – PlayStation 5 Sells Faster Than Any Console Ever