Microsoft on Tuesday announced changes to its app revenue sharing model with developers that provides a significant increase in the share of app revenue that goes to developers.
Starting later this year, consumer applications (not including games) sold in Microsoft Store will deliver to developers 95% of the revenue earned from the purchase of your application or any in-app products in your application, when a customer uses a deep link to get to and purchase your application. 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% of the revenue earned from the purchase of your application or any in-app products in your application
The new fee structure is applicable to purchases made on Windows 10 PCs, Windows Mixed Reality, Windows Phone and Surface Hub devices and excludes purchases on Xbox consoles.
The changes in the revenue split is apparently an effort to lure developers to create apps for its Windows platform and its Microsoft Store. Currently, The Redmond firm pays 70% of revenue to developers, which is the same cut Apple and Google pay developers from purchases in their app stores.
The number of apps in Microsoft’s store (over 669,000) greatly lagged behind both Apple’s App Store and Google’s Google Play Store (2.1 million and 3.5 million, respectively) at the end of 2017.