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by hobofan 2127 days ago
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.

3 comments

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.

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?
> 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.

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