[firemanx]

This was mentioned in one of the other threads about this - but you can purchase XBox games outside the Microsoft Store platform just fine - Best Buy, Amazon, Walmart, even resell on eBay, and Microsoft doesn't take a cut.

Apple does not allow for this model.

[hobofan]

I may be misinformed, but I'm pretty sure that Microsoft also takes a cut from physically distributed XBox games.

EDIT: Apparently during the Xbox 360 days, that was ~20%. Couldn't find any newer numbers.

[gamblor956]

You're misinformed.

Microsoft receives a fee from developers that participate in their licensing program, which is generally a royalty on each sale ranging from 1% to 30% depending on the negotiating leverage of the publisher.

Developers are not required to participate in that program to sell games/software for the xBox, and some don't, but MS doesn't guarantee that any unlicensed software will work with the current version of the system or any (software) updates to the system.

The same is true of Sony as well.

[nodamage]

Can you cite a source for this claim and provide an example of a game that was physically distributed in stores without the publisher having a signed publishing agreement with Microsoft?

[hobofan]

> Developers are not required to participate in that program to sell games/software for the xBox, and some don't

They may not be required to take part in the standard distribution licensing program, but instead have the option of participating in ID@XBOX, where the games still have to be certified by MS to be allowed on the platform. This program also seems to be exclusive to digital distribution and smaller indie studios.

In the end MS is still always in a position to take revenue cuts for access to their platform, and mostly exercises it.

[pbalau]

For the first transaction MS most likely gets a cut, but after that you can resell xbox games (at least the ones sold on physical media). You can't resell ios apps.

[alextheparrot]

While true, this seems completely orthogonal to the financial relationship between the developer and platform owner

[spicybright]

Yes, I'm equally mis-informed, but allowing companies to make games for your console requires some payment to the creator of the console to allow that.

It's how consoles are sold at a loss, but make it up through game sales.

[Retric]

Microsoft still get’s their ~20% for games sold in other stores. So, in terms of Microsoft’s profit on XBox those sales channels are closer to downloading over WiFi vs cellular modems.

They also prevent other digital retailers from selling on the XBox which is very relevant for in game purchases.

[m0xte]

Not necessarily the case. The newer xboxes don’t come with removable media and the bought keys are tied to your Microsoft account.

The whole thing is slippery mass of corporate worms trying to fuck each other over for market control and the only losers are the end users. I want nothing to do with any of them any more.

[pwinnski]

We're talking about a free game with in-app purchases. Where it comes from initially isn't very relevant.

Microsoft takes 30% of IAP.

[CobrastanJorji]

That applies to many devices, but try using any of those games in your brand new Xbox One S All-Digital Edition.

[threeseed]

Nintendo takes 40-60% depending on their level of investment.

Whether it's bought in a store or not is irrelevant.

[TheRealSteel]

That isn't true at all, Microsoft absolutely takes a cut from physical game sales, and also places arbitrary restrictions on what can be sold and requires pre approval for everything. That's literally the business model of the Xbox.

It's no different to the iPhone at all. It's just less controversial because people think of their phone like a mini computer but always expected consoles to be closed.

[gamblor956]

Microsoft also negotiates with publishers/developers, so it's not a flat rate. MS (and Sony) let the market decide what their royalty is for every sale, and that's what anti trust laws want.