• Loading stock data...
Tuesday, November 18, 2025
Want a chance to win $250 and free FOS gear? Take our quick reader survey. Take the survey here

How Microsoft Could Change the Gaming Industry

  • Microsoft lowered the cut it takes from developers on its game store to 12% and may be considering the same move for console games.
  • Most game platforms of either type charge a 30% rate.
Microsoft/Design: Alex Brooks

As Apple and Epic Games duel in court over the future of gaming revenue, Microsoft may render the final verdict.

Last week, the Xbox maker rattled the gaming industry with its announcement that it would reduce the cut it takes from game developers who sell on the Microsoft Store from 30% down to 12% — a drop from Apple and Steam’s rate down to Epic’s.

Last year, “Fortnite”-creator Epic implemented a workaround to dodge Apple’s 30% fee, triggering a legal battle that began its trial on Monday.

Microsoft’s move is part of a broader push to attract users and developers.

  • The company is revamping its online store to allow more apps, third-party commerce within apps, and address complaints about speed and usability. 
  • Microsoft had been in talks to buy Discord, a popular instant messaging and video platform popular with gamers. Those talks have ended for now, and Discord is considering going public.

The looming question: Will Microsoft make the same move for console games? Like Sony and Nintendo, it charges developers a 30% fee for console game sales. 

Leaked documents related to the Epic v. Apple trial suggested that Microsoft was planning on dropping the console games fee to 12%, but the company told The Verge it has “no plans” to do so “at this time.”

If Microsoft does make that switch and brings in a new wave of game developer talent to its platform, it could pressure the other big market players to follow, radically altering the economics of game development.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Michelle Smallmon

How ESPN Radio’s Michelle Smallmon Bet on Herself and Won

After the pandemic, she felt “something was missing.”
Spectrum

ESPN Streaming Service at Core of New Spectrum Plan

The No. 1 U.S. distributor further blends linear and streaming TV.

MLB Nears Media Shake-Up: ESPN, NBC, Netflix In, Apple Out?

Sources told FOS that local rights are of particular interest to ESPN.
exclusive

MLS Commissioner On Apple TV Deal: Critics ‘Don’t Get It Yet’

“We’re just early,” Garber told FOS when pressed about the deal.

Featured Today

Jan 28, 2025; Washington, DC, USA; Senator Ted Cruz (R-TX), Chairman of the Senate Committee on Commerce, Science, and Transportation, begins a hearing to examine the Panama Canal and its impact on U.S. trade and national security, focusing on fees and foreign influence on Tuesday, January 28, 2025.

Congress Turns Up Heat on Sports Leagues Over Betting Integrity Issues

MLB, the NBA, and the NCAA are all in lawmakers’ crosshairs.
Oct 3, 2025; Tempe, AZ, USA; Penn State Nittany Lions forward Gavin McKenna (72) warms up before the game against the Arizona State Sun Devils at Mullett Arena
November 18, 2025

NCAA-CHL Rule Change Has Already Shaken Up Hockey

Inside how leagues feel a year since the announcement.
Sailgating
November 14, 2025

‘Sailgating’: Inside Washington Football’s Tradition on the Water

The pregame experience can cost tens of thousands of dollars.
exclusive
November 13, 2025

Track CEO Charged With Child Rape Passed USATF-Ordered Background Check

The track world didn’t know about the charges for nearly a year.
Jul 26, 2024; Paris, FRANCE; Shaun White poses for a photo in front of the Eiffel Tower before the Opening Ceremony for the Paris 2024 Olympic Summer Games.

The VC Firm Whose Investors Include Jets, Pacers Ownership Groups

359 Capital is lifting the veil so consumers can see its investors.
May 20, 2023; Los Angeles, California, USA; Los Angeles Dodgers and LA Sparks co-owner Todd Boehly watches during game three of the Western Conference Finals for the 2023 NBA playoffs between the Los Angeles Lakers and the Denver Nuggets at Crypto.com Arena.
exclusive
October 27, 2025

Mark Walter’s Lakers Buy Includes Dodgers Co-Owner Todd Boehly

Jeanie Buss will retain a roughly 15% stake and remain team governor.
Nov 5, 2025; Denver, Colorado, USA; Denver Nuggets center Nikola Jokic (15) during the first quarter against the Miami Heat at Ball Arena.
November 11, 2025

Excel Sports Valued at Nearly $1B in Sale to Goldman Sachs

The talent agency represents Caitlin Clark, Derek Jeter, and more.
Sponsored

NFL QB Christian Ponder Is Preparing Athletes for Business

Former NFL quarterback Christian Ponder discusses the transition from field to boardroom.
Jonathan Mariner
July 9, 2025

Former MLB CFO Jumps to PE, Says Teams Are Undervalued

Mariner worked in Major League Baseball for 24 years.
James Harden
April 24, 2025

Adidas Posts Big Profits in First Quarter Without Yeezy

Profits and sales are up after selling off remaining Yeezys last year.
March 20, 2025

Nike Struggles Continue, but Signs of Turnaround Appear

The embattled company beats tepid expectations in both revenue and earnings.
Oracle Park
March 18, 2025

S.F. Giants Selling Stake to Private Equity to Pay for Facility Upgrades

The team said the cash would not be used to grow payroll.