Microsoft slashes PC games revenue cut to 12%

Microsoft slashes PC games revenue cut to 12%

Software and tech giant Microsoft is now offering a much more competitive revenue-sharing deal for games on its store.

In a post on Xbox Wire, Xbox Game Studios boss Matt Booty (pictured) revealed that as of August 1st, it will be taking just a 12 per cent slice of the pie, compared to the 30 per cent cut it was taking before. That's in line with the terms of the Epic Games Store, which made its debut at the end of 2019.

This is the latest in a long ling of charm offensives that Microsoft has launched to the PC games community. Though its Windows operating system is widely used – and wildly popular – the Big M has historically struggled to make a dent with PC gamers. With the advent of the Universal Windows Platform (UWP), Microsoft has tried to court this audience, launching first-party titles simultaneously on PC and its Xbox consoles, as well as bringing its Xbox Game Pass subscription service to PC.

The new 88/12 per cent revenue share puts increased pressure on platforms like Steam and GOG, which still employ the old industry standard of 70/30 per cent. Valve has recently become the subject of a class-action lawsuit alleging it employs anti-competitive measures in order to maintain its 30 per cent cut.

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

“A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.”

Booty continued: “We know that we still have a lot of work to do, but based on the response from both PC gamers and PC game developers, we think that we’re headed in the right direction for this community with the investments we’re making. We have never been in a better position as an organisation to deliver for PC gamers, with Xbox Game Studios and Bethesda developing content for both PC and Xbox, the Windows and DirectX teams creating technologies that empower developers and provide PC players with features that specifically take advantage of PC hardware, Xbox Game Pass for PC featuring games for every type of PC gamer with Xbox Game Studio games coming on day one, and the ongoing evolution of the Xbox app and Xbox Game Bar. We’ll continue listening to the community to ensure we’re delivering on our promises, and respecting how players choose to play."

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.


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