UPDATE: Microsoft reiterates that it has no plans to adjust the revenue split for the Xbox console and that the store will remain at 70-30 for now.
Microsoft will apparently go down in history and become the first console platform to offer an 88-12 revenue split in favor of developers.
New documents say Microsoft will reduce the revenue split of its PC and Xbox console storefronts from 70-30 to 88-12. Developers and publishers would effectively keep 88% of revenue compared to 70% in previous years. The news comes days after Microsoft announced that it would only charge PC developers 12% of all sales on the Windows Microsoft Store. Epic Games were the first to offer such a revenue split in 2018.
Microsoft is publicly ignoring the distribution of revenue. “We do not intend to change the revenue share of console games at this time,” a spokesperson said The edge.
This new policy, which is expected to launch in 2021 (if at all), likely comes with exclusions and provisions. An overall reduction would significantly reduce Microsoft’s digital gaming revenue, which accounts for the lion’s share of its quarterly and annual Xbox revenue.
Microsoft’s Xbox division has earned a record $ 11.65 billion so far in fiscal 2021, mainly through third-party game sales and in-game monetization. Documents do not specify conditions specific around revenue distribution, and it’s possible that Microsoft may exclude DLCs, add-ons, and microtransactions from the new 88-12 model in order to preserve its current revenue.
It’s also possible that the new policy has been revoked and Microsoft will keep its current 70-30 revenue split.