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Microsoft will not be changing revenue split for games on Xbox

Last week, we learned that Microsoft would be changing its revenue cut for games sold through its store on PC. According to files revealed ahead of the Epic Games v Apple trial, Microsoft was also considering doing this for games sold on Xbox, but has since backed off on those plans.

The document titled “Microsoft Store Policies & App Store Principles”, shows that Microsoft intended to reduce its revenue cut on games sold on Xbox from 30 percent to 12 percent, which would match the PC store’s 88/12 revenue split. The change was supposed to happen later this year.

The new revenue split is still going ahead on PC, but speaking with The Verge, a Microsoft spokesperson confirmed that this change would not be taking place on Xbox: “we have no plans to change the revenue share for console games at this time. We will not be updating the revenue split for console publishers”.

All three major console makers, Microsoft, Sony and Nintendo, take a 30 percent cut from game sales on their platforms in order to subsidise hardware costs, something that isn’t a concern on PC as hardware is sold through other vendors.

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KitGuru Says: While this would have been an interesting change, it won’t be happening any time soon, particularly at the start of a new console generation where hardware costs are at peak.

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