Microsoft has announced plans to cut their share from games sold on their store on August 1. In a statement from Matt Booty, Head of Xbox Game Studios, he shared Microsoft’s plans to reduce their share from 30% to 12% as part of the studio’s commitment to empowering every PC game creator.
The goal here is to allow game developers to bring more games to fans and earn more from doing so. This would not only benefit Microsoft as this would mean gamers would have more options to choose from, increasing the variety and quality of available games.
Microsoft’s “player-first” approach
In a previous article, we wrote about the “player-first” approach in the same statement from Booty. It’s evident that Microsoft is following through with that thought as they work to improve their presence in the PC gaming community. They emphasized their plans on creating a more “tailored experience” for PC gamers as they further improve upon their Xbox Game Pass service which surpassed 10 million subscribers last April 2020.
This news follows as Microsoft declares a revenue of $15 billion over the past year. The majority of that revenue was credited to Xbox content and services which made up 82% of the total amount. Microsoft’s acquisition of studios like Bethesda is credited with boosting revenue.
It’s safe to say then that Microsoft could afford the Store cut to 12%. With higher revenues as a motivator, more game developers should have more reason to develop high-quality games. The main beneficiary here will be the gamers, of course, which should fit in nicely with the whole “player-first” mentality.