Microsoft non-gaming app developers to get 95 percent profits
New Delhi : Microsoft in ‘Build 2018’ annual developer conference, has made a key announcement about the change of its Microsoft Store policy to allow developers 95 percent of the revenue from their apps - specifically, non-gaming apps. For some time now, the company has been struggling hard to get support of developers and now, it looks like the company has made major changes in terms of revenue generated from app developers.
The change seems to hugely affect Microsoft as the company currently collects 30 percent of revenues from apps and in-app purchases. The sole aim is to attract developers to build apps for Windows OS. However, reports confirm that the new 95 percent revenue sharing model is only available on consumer apps and not on games. Also, the company will switch it to 85 percent if it helps a developer get customers through marketing on the Microsoft Store.
"When Microsoft delivers you a customer through any other method, such as in a collection on Microsoft Store or any other owned Microsoft properties, and purchases your application, you will receive 85 percent of the revenue earned from the purchase of your application or any in-app products in your application," Microsoft explains in a blog.
Remarkably, the new Microsoft Store fee structure will be applicable to apps for Windows 10, Windows 8.x and/ or Windows Phone 8.x, Windows Mixed Reality, Windows Phone, and Surface Hub, but will exclude the Xbox consoles. Microsoft says it will formulate 95 percent revenue share structure available later this year and will apply to all consumer app subscriptions and add-ons (in-app purchases). However, developers of gaming app will get no support as they will continue to pay a 30 percent of net revenue.
The big change from 70 percent to 95 percent is a fair enough as compared to what Google offers to Play Store app developers and Apple to its App Store app developers. Earlier this year, Google's new subscription revenue-sharing policy changed the split from 70:30 to 85:15, but it is applicable only when publishers hold users for a minimum period of 12 months.
Similarly, Apple also divides subscription revenue 70:30 with developers for the first 12 months of subscribing to an app. Once the 12 month period is over, Apple increases the split to 85:15 in favour of the developers.