Is Microsoft cutting platform fees in a bid to stop publishers from fleeing Xbox?

[Cool hand luke]

As many know, platform holders earn a standard 30% cut of any revenue made on their platform by third party titles. Platform fees are an enormous, low-risk, low-effort revenue stream for companies. Building a massive platform and clipping the ticket is a superior strategy to shipping titles on multiple platforms and risking the degradation of your platform, which makes Sony's move to PC (to a lesser extent) and Xbox's prostitution of all of their IP value-destructive decisions.

We know Xbox is losing 30% of the revenue of every title they port to and sell on PlayStation.



We know that publishers, when they have leverage, have the ability to demand a lower cut from platform holders. Activision did this for COD, even threatening to withhold COD from Xbox if they did not agree to a 20% cut.

We also know that Xbox owners do not buy titles at anywhere near the rates of PlayStation or Switch users. Instead, software sales of AAA titles rival the lowly Steam platform. Major publishers are wondering whether it's even worth releasing titles.

We know Xbox is not allowed to market COD as coming to Gamepass too loudly. Gamepass money has dried up. Satya's money has dried up. So how do you pay developers to support you?

Why has Square Enix suddenly changed their tune, after FFXIV's infamous flop on Xbox? Why is Sparking Zero by Namco Bandai back to being advertised on Xbox? Why is Konami teasing MGS4?

You cut your platform fee, probably down to 15-20%

So, is Xbox being slapped around like a ho by pretty much all publishers these days?

 

[Plextorage]

Ups, i've accidentally voted NO.

 

[Cool hand luke]

Ups, i've accidentally voted NO.

You can now change your vote on the poll

 

[Kokoloko]

Man why is it Phil can be so vocal about PS but Sony doesnt come out and show all the contradictions, lies and underhanded comments Xbox make. Or deals like Sega or exclusives like Ark 2.

Xbox also take 30% from publushers and Valve also takes 30% including from PS.
Its normal

 

[Shadow2027]

Probably started with Sega as well as paying them an arm and a leg for marketing. No doubt they did with square to try and get games. Wouldnt be surprised if they only get 10% from them to really grease the wheels

 

[Alabtrosmyster]

Is this speculation or a comment on a move they made? The title imply they did reduce the cut down.

Here is why it makes no sense to them, they're already a small player in the space, if they get more games but people still don't buy more games it means that it will become less interesting to port games to xbox than it already is.

The problem is saturation, not what they charge (obviously I'd prefer it if platform holders charged 10-15%).

 

[peter42O]

No. Microsoft will be just fine. SMH.

 

[ethomaz]

I remember the old days of Xbox One when Xbots on GAF tried to highlight that Xbox gamers were buying more games than PlayStation gamers (it was not)... saying that Xbots spend more money than PlayStation fans.

How things changed... today they doesn't even shame when they say they don't buy games anymore

 

[Cool hand luke]

Is this speculation or a comment on a move they made? The title imply they did reduce the cut down.

Here is why it makes no sense to them, they're already a small player in the space, if they get more games but people still don't buy more games it means that it will become less interesting to port games to xbox than it already is.

The problem is saturation, not what they charge (obviously I'd prefer it if platform holders charged 10-15%).

Speculation based on the sudden uptick in support for a platform whose health metrics are in the shitter and getting worse. It's terminal out here.

 

[Johnic]

Speculation based on the sudden uptick in support for a platform whose health metrics are in the shitter and getting worse. It's terminal out here.

Signed before the recent downfall began. Contractual obligations have to be fulfilled.

 

[anonpuffs]

I don't think they would cut the platform split. Publishers know that the difference between getting 70% and 90% of (a small number) is not going to change the financial viability of their games on Xbox.

What I believe Xbox is doing is providing an up front financial incentive/considerations, then using creative accounting to hide the cost behind another department.

 

[Alabtrosmyster]

I don't think they would cut the platform split. Publishers know that the difference between getting 70% and 90% of (a small number) is not going to change the financial viability of their games on Xbox.

What I believe Xbox is doing is providing an up front financial incentive/considerations, then using creative accounting to hide the cost behind another department.

It may be enough for some to take the risk, just in case it works.

It could also put some pressure on Sony, but I think that given the current situation at xbox ... there won't be much pressure.