Microsoft plans to reduce the commission for the Xbox Store to only 12 percent, according to classified documents filed in the Epic Games case against Apple.
The software giant details the store’s fees and the changes Document From January, it also lists the 12 percent reduction in PC games it announced at the end of April.
While most of the important parts of the document have been redacted, one page reveals that Microsoft also wants to reduce the store’s 30 percent commission on the Xbox console side.
The table reveals that all games are moving up to 12/88 in CY21, which means Microsoft plans to cut into massive commissions for the Xbox Store over a period in 2021.
While Microsoft announced a reduction in the PC Game Store commission, which is also listed on the same schedule, the company has been mum about Xbox plans.
Reducing the commission to 12 percent is important, especially since Microsoft, Sony and Nintendo currently get 30 percent of digital game sales.
A company spokesperson said about these documents: We have no plans to change the revenue share for console games at this time.
This indicates that these plans either have failed, have changed dramatically since January, or that the company is not ready to announce any changes yet.
Either way, the software giant is clearly planning this change, and wants to reduce the Xbox commission in some way.
The documents also reveal that there is a proposal currently under consideration to adopt the 88/12 as a public share in the proceeds of computer games for all games in exchange for granting broadcasting rights to Microsoft.
The company plans to reduce its share of PC games revenue to 12 percent in August, but it is not clear if the broadcast rights clause is still included.
The broadcast rights clause means that developers will have to ensure that the games are available via xCloud in order to obtain the said revenue cut.
And cloud gaming rights, particularly Xbox Game Pass, have become an emerging battleground for the platform’s exclusive rights in several decades recently.
Nvidia has faced opposition from publishers and developers after publishing some games on its GeForce Now cloud game service without permission.
Any changes to Xbox Store fees for broadcast rights will put pressure on Sony, Nintendo, Valve, and even Apple.