Microsoft is reducing the cut it takes on game sales from 30% to just 12% from August 1. These changes will only affect PC games and not Xbox console games in Microsoft's store.
"As part of our commitment to empower every PC game creator to achieve more, starting on August 1 the developer share of Microsoft Store PC games sales net revenue will increase to 88% , from 70 %," Matt Booty, head of Xbox Game Studios at Microsoft, said in a statement.
Microsoft, Sony and Nintendo subsidise hardware to make consoles more affordable, and offer marketing deals in return for a 30 per cent cut on software sales, the report said. "Game developers are at the heart of bringing great games to our players and we want them to find success on our platforms,"Matt said.