Microsoft cuts PC gaming to just 12 percent by cutting Windows Store

Microsoft is mixing the PC gaming world with huge amounts of revenue today, which drastically cuts down on revenue from games on Windows. The software giant has been reducing its deduction from 30 percent to just 12 percent since August 1, to entice developers and studios to compete with Steam and to bring more PC games to the Microsoft Store.

“Game developers are ready to bring great games to our players, and we want them to succeed on our platforms,” ​​says Matt Bootie, head of Xbox Game Studios at Microsoft. “A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success by doing so.”

These changes will only affect PC games and not Xbox console games in Microsoft’s stores. Although Microsoft has not revealed why it is not reducing the 30 percent charged on Xbox game sales, it is likely because the console business model is completely different to PCs. Microsoft, Sony and Nintendo subsidized the hardware to be more affordable and offered marketing deals in exchange for a 30 percent cut on software sales.

Microsoft’s new shortcomings on the PC side are significant, and this corresponds to the same revenue split that Epic Games offers PC game developers, putting more pressure on Valve to reduce its Steam Store cut. Valve still cuts 30 percent on sales at its Steam store, which decreases to 25 percent when sales are $ 10 million, and then 20 percent for each sale after $ 50 million.

Despite this large revenue cut, Steam brains and market share among developers dominate, but many do not think the 30 percent fee is justified. a recent survey

3,000 sports industry professionals found that most sports gods do not think that Steam cuts 30 percent of its revenue. Microsoft’s move will only increase the pressure on the valve.

Competing with Steam is still a major challenge. Microsoft and Epic Games have struggled to convince game developers to list titles in their stores to compete with Steam. Epic Games has tried exclusions to entice developers, but a large part of Microsoft’s struggle is related to forcing game developers to use UWP in the past, and the terrible Windows Store app that still exists today.

Microsoft started supporting traditional win32 games in its stores a few years ago, but this change alone did not help the Windows Store compete with Steam. The 12 percent cut could entice more developers to list their games in Microsoft’s store, especially if the company can improve the poor experience for end users.

Loot is promising with “improved reliability and faster download speeds in just a few months”. Microsoft is also reportedly working on its Windows Store which could pave the way for developers to be able to submit any Windows application to the store – including browsers such as Chrome or Firefox. Improvements to these stores could also allow for a third-party commerce platform in apps, which would be a major shift with this 12 percent cut.

Beyond the store, Microsoft still needs to improve PC gaming. The Xbox game bar has been a welcome improvement, but services like Steam and Disord are far more popular than Microsoft’s alternatives. The world’s largest PC games are also fighting a surge in theaters and hackers, and Windows isn’t enough to help Game Studio save its games.

“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 the community we are investing in. Are, ”says Booty. Microsoft still has more to share with its PC plans and common Windows fixes in the coming months. Booty teases a promising second half of 2021 “when our work in the entire PC ecosystem is the ability to come together in a way that drives the industry forward and brings great games to more gamers around the world.”