Long read: What might the ultimate character creator look like?

Baldur's Gate 3, Street Fighter and Lost Ark developers discuss.

If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Microsoft will slash its own store cut on PC game sales

Down to 12%, in line with Epic Games Store.

Microsoft will cut in half the amount of money it takes from PC game sales via the Microsoft Store, as of 1st August.

The reduction - from 30 percent down to 12 - means more money in the developer's pocket, and less in Microsoft's.

This 12/88 revenue split brings the Microsoft Store in-line with the Epic Games Store. Steam, the PC game marketplace leader, still takes 30 percent (which shrinks to 25 and then 20 percent for more profitable games).

Cover image for YouTube videoHalo Infinite: What We Know So Far - HALO INFINITE GAMEPLAY

There's no suggestion Microsoft will change the amount of money it takes from game sales on Xbox consoles. This is unsurprising, since console hardware is typically sold as a loss leader, with sales of games, add-ons and subscriptions used to turn a profit. Additionally, there is no imminent pressure in the console space to change the 30 percent cut taken by all major platform holders.

"Game developers are at the heart of bringing great games to our players, and we want them to find success on our platforms," Xbox game studios boss Matt Booty wrote in a blog post today.

"A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so."

Booty added that the Microsoft Store was being retooled, with a focus on "improved install reliability and faster download speeds" to roll out over the next few months.

As Microsoft looks to grow Xbox Game Pass to more devices, today's news seems like a push to improve the service on PC. A more attractive revenue share will likely encourage more PC developers to Microsoft's Store, which in turn will mean more games on the PC version of Xbox Game Pass, and more sales of extra content - even at that lower 12 percent cut.

Elsewhere today, Microsoft announced Halo Infinite - which will launch for PC and Xbox consoles later this year - will support crossplay and cross-progression. Meanwhile, Halo: The Master Chief Collection has seen over 10 million players since its PC launch on Xbox Game Pass for PC.