Microsoft: Through a confidential document that is being used in the Epic and Apple court case, it was confirmed that Microsoft has studied plans to increase developers’ revenue from selling games by reducing their own profit share by 18% to favor competitiveness.
The leaked report states that “all games will adopt the 88/12 system in AF21,” and suggests that the change has been included to have a significant impact on the relationship between Microsoft and the studios, which currently distribute profits in proportions of 70 / 30, respectively. This measure would be in addition to another proposal from the company (via The Verge), which plans to reduce taxes on PC games from 30% to 12%.
When asked about the data presented in the documents, a Microsoft spokesman said that “there are no plans to change the share of revenue from console games”, and hinted that the new distribution policy on consoles mentioned by the company – in relation to Xbox One and Xbox Series S / X – has been discarded or is not on the schedule for now, even with its strategy referring to the fiscal year 2021, which ends in September this year.
So far, nothing has been confirmed about an alleged application of an unprecedented profit sharing in the console market by Microsoft, but the news comes to ignite the competitiveness between the major brands and to stir up the backstage.