The standard revenue share model for digital stores, such as Steam, PS Store, Xbox Store, Nintendo's Eshop, and mobile App Stores has long been 70/30, with the store making 30% of every digital sale.
Epic Games Store shook things up by moving to a 88/12 model, and now it looks like Microsoft is set to follow in their footsteps.
Leaked Documents Reveal An 88/12 Model For Xbox
In a document submitted in January as part of the Epic Games vs Apple court case, Microsoft has revealed that it plans to cut its fees from 30% to 12% to match Epic Games Store.
Microsoft states that “all games will move to 88 / 12 in CY21” in the document that was spotted by The Verge.
The tech giant has already announced that from August their PC fees will lower to 12%, but so far haven't announced the same for Xbox.
Matt Booty, head of Xbox Game Studios at Microsoft said that,
“Game developers are at the heart of bringing great games to our players, and we want them to find success on our platforms. A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.”
This would put more pressure on Valve and their Steam platform as it currently takes a 30% cut of all sales, whereas now its two main competitors, Epic Games and Microsoft will move to a 12% cut.
A change to the revenue share for Xbox would be unprecedented as all three consoles currently take a 30% cut, so this move could really shake up the industry and set a new standard.
It would be very unusual for Sony and Nintendo not to follow Microsoft if the change does come to Xbox.
In a statement to The Verge, Microsoft did deny plans to lower the fees for their Xbox platform, but this could mean they are not ready to announce the change yet.
“We have no plans to change the revenue share for console games at this time.”
It will be interesting to see whether Microsoft does lower its fees on Xbox, and if it does we can expect that announcement soon.
Who'd have thought that Fortnite would be the catalyst for huge changes to the gaming industry.