Monday December 4, 2023

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
Linkedin
Copy Link
Link Copied
Link Copied

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
Copy Link
Link Copied
Link Copied

What to Read

LeBron-James

Would Disney's ESPN Walk Away From The NBA?

Will financial pressures impact the company's decision with a longtime partner?
Inter Miami CF forward Lionel Messi smiles as he walks on the field against the New York Red Bulls during the second half at Red Bull Arena.

The Results of Messi Mania Are In

A million people per match tuned in for Messi and Inter Miami.
Jimmy Pitaro of ESPN

Disney Explores Equity Deal With NFL and NBA for ESPN Amid Financial Challenges

With company under pressure from Wall Street, talks are heating up to sell a stake in ESPN.

MLS Playoffs Format Facing Criticism From Fans, Players

This year, first-round matches are being played across three-game series.
podcast thumbnail mobile
Front Office Sports Today

CFP Selection Turns Heads with Controversial Selection

0:00
0:00

Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? "AG’s Office Has Not Expressed Interest In Pursuing"

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference's future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Wasserman
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers
The swoosh logo at Nike Eugene.

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
June 30, 2023

Nike To Revive Kobe Signature Shoe Line

Late HOFer will again be the center of a signature shoe line.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
At Dick's Sporting Goods in Fairless Hills, Store Administrative Assistant Christine Vandfermay, of Philadelphia, restocks some Philadelphia Eagles items.
May 23, 2023

Dick’s Sporting Goods Sees Modest Growth, Less Foot Traffic

Dick's Sporting Goods saw a 5.3% increase in net sales in Q1.
Hellen Obiri of Kenya crosses the finish line to win the women's division at the 2023 Boston Marathon.
May 16, 2023

On Wants More Star Power, Visibility for Next Growth Phase

On is looking to grow through tennis and other verticals.
Topgolf
May 11, 2023

Topgolf Callaway Lowers Sales Expectations

Callaway cut its profit forecast for this year.
Endeavor
May 10, 2023

Endeavor Posts Record Quarter Amid UFC-WWE Merger Plans

Endeavor bought WWE in April, it also sold its IMG for $1.25B.