Microsoft Store to reduce its cut from 30% to 12% on August 1

On August 1, Microsoft is reducing its Microsoft Store’s cut from 30 percent to just 12 percent to make the platform more attractive for devs and publishers.

“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,” said Matt Booty, head of Xbox Game Studios at Microsoft.

The 12 percent matches the revenue split offered by Epic Games. That’ll show Valve with its unflinching 30 percent cut! Or not. As of now, Steam commands 75 percent of all PC games despite being hit by antitrust lawsuits. To be fair, Steam will take a reduced cut of 25 percent if your game generates over $10 million, and then 20 percent for every sale after the $50 million mark.

Microsoft is only reducing its cut on PC. The tech giant is keeping the 30 percent it takes on Xbox game sales. According to The Verge, “it’s likely because the console business model is entirely different to PC. Microsoft, Sony, and Nintendo subsidize hardware to make consoles more affordable, and offer marketing deals in return for a 30 percent cut on software sales.”