Software giant Microsoft has reduced the amount of revenue it will earn from games in the Windows Store from 30 percent to 12 percent to compete with Steam, the world’s largest digital game platform.
Microsoft wants to become a favorite of gamers and game developers by reducing the Windows Store outage. The company made a clear offer to game studios to shift Steam’s user base to the Windows Store on Windows 10 computers. According to the latest statement on the subject, Microsoft will receive only 12 percent commission from the sales of games that will be published in the Windows Store as of August 1, 2021. This lowering of the commission level, which is normally 30 percent, can be quite exciting for players.
“Game developers are at the center of delivering great creations to our players and we want to make them successful on our platforms,” said Matt Booty, president of Microsoft Xbox Game Studios. For this, all we need to do is to bring a clear and unconditional revenue sharing model to developers. In this way, the games prepared will appeal to a much wider audience and will also have a commercial success. ” found in the description. It seems that Microsoft will take responsibility, so to speak, for the Windows Store to become the preferred place for digital game distribution. Because withdrawing the game sales cut of 30 percent up to 12 percent can greatly reduce the earnings Microsoft earns from the Microsoft Store. It is worth noting that not every organization can make such a change.
In addition, the mentioned commission discount is only valid for PC games and will not affect Xbox console games in the store. At this point, Microsoft did not provide information about why the 30 percent cut from Xbox game sales was not reduced. However, one reason for this is that the console business model is completely different from that of the PC. That’s because companies like Microsoft, Sony, and Nintendo try to keep the cost of hardware low to make consoles more affordable. Consequently, it becomes a necessity to get 30 percent commission from game sales in order to close the financial deficit here.
Things Can Get Tough for Steam
While Microsoft’s commission reduction move is very similar to the positive revenue distribution Epic Games offers to PC game developers, it can also lead to heavy criticism of Valve’s revenue model for Steam. Valve is cutting 30 percent from sales in the Steam store; When these sales reach $ 10 million, the cut rate drops to 25 percent and the rate of cut for every sale after $ 50 million drops to 20 percent. Despite getting more commissions on Steam, this platform dominates the market in terms of the game development community compared to its competitors. However, according to a recent survey by a community of game industry experts; most game development studios feel that Steam does not deserve a 30 percent commission. Perhaps a possible developer migration from Steam to other stores could bring about changes in Valve’s revenue distribution policy.
Competing with Steam is still a major challenge today. Both Microsoft and Epic Games have tried various ways to attract game developers to their side, but we cannot say that these initiatives have been very successful against Steam. The two biggest mistakes Microsoft made as part of its fight for the Windows Store; In the past, it has manifested itself as forcing game developers to use UWP and the impracticality of the Windows Store app. The company started supporting traditional win32 games in its store a few years ago, but this change alone wasn’t enough to compete with Steam. As a second step, a low 12 percent commission rate can encourage more developers to publish games on Microsoft’s store, if, of course, the poor experience of the store app for users is improved.
According to the development a few days ago, the Windows Store application will be completely renewed. It is stated that the main goal is to bring a simple and useful interface with the new Windows store application.
Beyond the store, Microsoft also needs to significantly improve its tools for PC gaming. Xbox Game Bar has been a welcome development, but services such as Discord and technical software for games are much more popular than Microsoft’s alternatives. In addition, while the problem of cheating in PC games is growing like an avalanche, Windows as the operating system does not have some competencies to protect games.