Microsoft takes on Steam by lowering its cut of developer revenues to 12%

Microsoft today made a huge announcement to attract more game developers to its Microsoft Store. Microsoft is now updating the Microsoft Store terms for PC game developers to improve their revenue. From August 1, the developer share of Microsoft Store PC games sales net revenue will increase to 88%, from 70%. There are no conditions for developers to enjoy the new increased revenue share. This 12% cut will be applicable to all PC games. Microsoft also reiterated its commitment to PC gaming.

We know that we still have a lot of work to do but based on the response from both PC gamers and PC game developers, we think that we’re headed in the right direction for this community with the investments we’re making. We have never been in a better position as an organization to deliver for PC gamers, with Xbox Game Studios and Bethesda developing content for both PC and Xbox, the Windows and DirectX teams creating technologies that empower developers and provide PC players with features that specifically take advantage of PC hardware, Xbox Game Pass for PC featuring games for every type of PC gamer with Xbox Game Studio games coming on day one, and the ongoing evolution of the Xbox app and Xbox Game Bar. We’ll continue listening to the community to ensure we’re delivering on our promises and respecting how players choose to play. This is especially true as we head into the second half of 2021, when our work across the entire PC ecosystem has the potential to come together in a way that propels the industry forward and brings great games to more gamers around the world.