Microsoft is now going to let developers keep 95 per cent of their profits. Considering that it’s a standard practice for big app stores — Apple and Google — to take 30 per cent of earnings, Microsoft is really changing the game. Before, developers with the Microsoft store kept 70 per cent of their earnings.
Who does it applies to?
This new practice applies to app purchases and in-app purchases from consumer applications, not games. Microsoft is also introducing a tiered system where, if a user purchases the app through a “deep link” the developer will get 95 per cent of the revenue, but if the customer comes to the app by way of Microsoft marketing, like the app is in a collection in the Microsoft store, the developer will get 85 per cent of the revenue.
Microsoft says that this structure is applicable to purchases made on Windows 10 PCs, Windows Mixed Reality, Windows Phone and Surface Hub devices. It does not apply to purchases made on the Xbox. The current fee will still apply to purchases made on the Microsoft Store for Business and the Microsoft Store for Education.
These changes to our current Microsoft Store fee represent a new way for you to monetize on the Windows platform. 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.
When is it coming?
The fee structure will come into effect “later this year” according to the company, when they say they’ll prompt developers to accept a new version of the App Developer Agreement. Developers are encouraged to visit the campaign site for this initiative.