Microsoft Serves Developers Bigger Slice Of Revenue Pie

Microsoft has announced that it is changing its revenue structure so that developers can earn more with their apps in the Microsoft Store.

“Microsoft Store continues to evolve to be the best destination for Windows 10 users to discover and download Microsoft-verified applications that deliver predictable performance,” the company wrote in a blog post to developers. “Microsoft Store is also the best destination on Windows 10 for developers to reach new audiences and gain new customers. We’ll focus on the infrastructure, so you can focus on building the best app and growing your business as a developer. To that end, we are excited about the announcement Joe Belfiore will be making at Build 2018 regarding a new Microsoft Store fee structure coming later this year.”

Starting later this year, consumer applications (not including games) sold in Microsoft Store will earn developers 95 percent of the revenue generated from the purchase of their app or any in-app products, when a customer uses a deep link to get to and purchase the application.

And when Microsoft delivers a customer through any other method, a developer will receive 85 percent of the revenue earned from the purchase of the app or any in-app products in the application.

The new fee structure is applicable to purchases made on Windows 10 PCs, Windows Mixed Reality, Windows Phone and Surface Hub devices, but excludes purchases on Xbox consoles.

Tech Republic points out that this change is an attempt to boost interest in the Microsoft Store, which has struggled since it launched with Windows 8.

In an interview, Webrox CEO Stéphane Graziano even called the store “a disaster,” adding that “there is absolutely no adoption for the Windows Store, even with the user growth, because nobody cares.”

Microsoft is hoping these changes will entice developers to continue working on the platform. In comparison, Google’s revenue sharing for the Play Store grants 70 percent of apps and in-app purchases, while for subscriptions which have been retained for 12 months, the fee drops to 15 percent. Apple has similar policies for apps and subscriptions.

“With the new fee structure, Microsoft is only accessing an additional fee when we contribute to you acquiring a new user. These changes enable us to create a world where developers are rewarded for connecting customers with experiences they love in a secure, reliable way,” the company added.