Developers receive an increased share of 95% from Microsoft Store sales, contingent on a specific prerequisite.
Tweaked Microsoft Store Revenue Sharing: What You Need to Know
Microsoft's latest move has developers buzzing – a revised revenue sharing agreement for the Microsoft Store! The game changer? Microsoft now administers a generous 95% of app revenues to developers, with a minimal 5% keepsake from the tech giant – but there's a catch.
Want the full 95%? Here's the trick – users have to directly download the app through a provided URL, either from the developer's official site or other available sources. Fancy purchasing through the Microsoft Store search or a Collection? Well, developers are left with an 85% share, with Microsoft grabbing the remaining 15%.
This new pay structure, incorporated into the revised ADA, favors Windows 10 PCs, Windows Mixed Reality, Windows 10 Mobile, and Surface Hub devices only. Game and Xbox purchases remain under the original 70%-30% split.
App developers have been putting pressure on Apple to update its App Store revenue sharing terms, which currently gift developers 70% of the earnings while Apple nabs the rest 30%. For subscriptions, Apple takes a paltry 15%. No confirmation yet on whether Apple will adjust its terms post-Microsoft's update, but Apple recently added a lifeline by allowing developers to offer in-app subscription discounts to entice and retain customers.
Let's break it down:
- Registration Fees: Microsoft abolishes individual developer registration fees, while Apple maintains an annual $99 fee for App Store publishing.
- Revenue Sharing: Microsoft lets developers keep 100% of non-gaming app revenue by using their own payment systems. Apple does not offer this option, forcing developers to consider external payment gateways to circumvent Apple's policies and enjoy enhanced revenue retention.
- Commission Rates: Microsoft charges 12% for games and 15% for non-gaming apps through its platform, while Apple charges 30% or 15% based on annual sales thresholds for most apps.
In essence, Microsoft's new conditions aim at making the Microsoft Store more appealing to developers amidst Apple's seemingly restrictive environment.
Developers are now encouraged to distribute apps directly via a provided URL to secure the maximum 95% of revenues from Microsoft, compared to an 85% share when using the Microsoft Store search or collections. This revised policy by Microsoft is part of an effort to create a more attractive platform for developers compared to Apple's seemingly restrictive environment.
