Microsoft going back on revenue-share deal with developers

by Don Sharpe
Don Sharpe
Don Sharpe
Don has been writing professionally for over 10 years now, but his passion for the written word started back in his elementary school days. His work has been... read more
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microsoft store app developer revenue update

It seems that app developers for the Microsoft Store will no longer be getting up to 95% of the revenue from sales on the platform, according to a Tweet by Rob, a software developer. The Twitter user, who created Kanban Ink and other applications, tweeted that Microsoft indicated the change in an updated App Developer Agreement (ADA) this week.

Why Microsoft Store gave its app developers the best deal in the market

The Microsoft Store team updated the ADA on March 6, 2019, introducing a fee structure that allowed developers to receive as much as 95% of the revenue their consumer apps generated. As per the deal, developers would only get 85% in case the sales were the outcome of Microsoft’s own promotional activities.

Microsoft would only get 5% of the revenue, probably hoping that it would attract more developers to its store. Developers on both Google Play and App Store take a 70% cut from app sales and in-app purchases.

Did Microsoft’s 95/5 revenue split pay off?

If Microsoft Store is going back on its 95%/5% revenue share deal, there’s a high chance that things didn’t work out as anticipated. Maybe competition—a factor beyond the control of Microsoft and developers for its store— has contributed substantially to this.

For starters, Microsoft devices aren’t as popular as Android or iOS devices, and as such, many mobile users can’t access the Microsoft Store even if they wanted to. That shortcoming means that most app developers will prefer to create solutions for Google Play or App Store because these platforms are available on billions of devices worldwide.

While users on Windows 10 PCs or Surface Laptops can still purchase Microsoft Store apps, most people like to spend their time on smartphones as opposed to such platforms.

It appears that the Microsoft Store will continue giving developers as much as 85% of the earnings regardless of who delivered the customer. The company has not officially clarified the latest ADA changes, though.

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