Microsoft’s recent partnership with video game retailer GameStop will give the business a percentage of digital downloads on Xbox consoles they sell.
Revealed by DOMO Capital Management, details on the recent business pact were detailed, revealing why GameStop will be heavily incentivized to bring its customers into the Xbox ecosystem in the next generation.
Essentially, every digital purchase made on an Xbox console sold by the retailer will lead to revenue for them. A new copy of Cyberpunk 2077, Watch Dogs Legion of any other digital content on that system will lead to a three-way split in revenue: Xbox, GameStop and the content’s publisher.
Today $GME confirmed with @DOMOCAPITAL that the agreement with $MSFT includes revenue sharing on all downstream revenue (i.e. digital downloads and digital content) from any device that GameStop brings into the @Xbox ecosystem. GameStop now meaningfully participates in digital.
— DOMO Capital Management, LLC (@DOMOCAPITAL) October 14, 2020
With the world moving toward digital sales and Microsoft’s pushing of Xbox Game Pass as the future of gaming, retailers are having a tough time, especially with the rise of digital-only consoles like Xbox Series S and PlayStation 5 Digital Edition.