The great leveling! In an interesting but expected move, Microsoft will hike up the Windows Store fee for apps, taking a clean 30% of all revenue across the board.
Expected, because Redmond had announced this at BUILD 2014.
This is how the story goes. Building an app for the Windows ecosystem and selling it via the store sees Microsoft take a 30% cut — but only for sales up to $25,000. After which the cut drops to 20%.
Starting next year, this cut off mark will be going away.
The changes are set to go live on January 1, 2015, and the App Developer Agreement will be revised to reflect it. You can take a look at this new agreement that Microsoft posted a couple of weeks ago, section 6 is of interest here:
“For the Windows Store. The Store Fee for Apps made available in the Windows Store is thirty percent (30%) of Net Receipts, unless and until your App takes in total Net Receipts of USD$25,000, after which time the percentage is 20% for that App. The twenty-percent (20%) Store Fee will be in effect until December 31, 2014.
Beginning January 1, 2015, the Store Fee for all Apps made available in the Windows Store will be thirty percent (30%) of Net Receipts.”
So essentially developers will have to part with a clean 30%, as is the norm on most such stores, including Google Play and the App Store.
However, this discounted cut was a way for Microsoft to convince and bring developers to the platform. And was a pretty good way to kick start the ecosystem. Maybe the company could have undercut this and opted for a 25% share.
Then again, with Redmond practically giving away Windows licenses and services, for free to users, this is an acceptable way to keep the income levels up.