According to confidential documents filed in the Epic Games vs. Apple case, Microsoft planned to cut its Xbox store cut to just 12 %. Microsoft details its store charges in a document from January, where it also lists the 12 percent cut to PC games it announced last week. While most of the document is edited for publication, one page reveals that the company on the Xbox console side wanted to reduce its 30 percent store cut.
As per the table, all games will move to 88 / 12 in CY21. This the company has been planning at some point in 2021, a significant cut to Xbox transactions. While the company has announced its PC cut, the company has stayed quiet about any Xbox plans. 12% change would be significant, mainly because Nintendo, Sony, Microsoft all currently take 30 percent on digital game sales.
As per the spokesperson of Microsoft, “We will not be updating the revenue split for console publishers.” Whether the document is inaccurate or the plans changed, the company still refuses to answer. The document is part of the Epic Games vs. Apple trial that begins today. Microsoft’s free-related question could be there. Both Apple and Epic call on Microsoft’s Lori Wright, VP of Xbox business development, as a third-party witness next week.
The documents also reveal that the company planned a vital caveat to adopt this lower store rate on the PC side. The documents show, “There is a proposal currently under Gaming Leadership Team consideration to adopt 88 / 12 as a public PC games revenue share for all games in exchange for the grant of streaming rights to Microsoft.”
The company is planning to cut its share of the revenue for PC games to 12 % in August; the streaming rights clause is still included or not is clear. The streaming rights clause would mean for this improved revenue cut; developers have to ensure games are available on xCloud.
