Microsoft hints it will open up Xbox store, changing its entire business model
Microsoft has long argued that its Xbox store should be treated differently than the app store ecosystem around PCs or phones. The software giant takes a 30 percent cut on digital game purchases through its Xbox store, just like Apple takes from software purchased on its App Store. While Microsoft defended this business model during the Epic v. Apple trial last year, the Xbox maker is now hinting that it needs to make its Xbox store more open in a move that could change its Xbox console business model in the future.
Microsoft has unveiled a series of app store principles today that are similar to the ones it laid out two years ago. The principles are designed to “ensure we’re providing the best possible experience for creators and customers of all sizes,” according to Microsoft president Brad Smith. Most of the principles only apply to Microsoft’s Windows store, and not its Xbox store, though.
Microsoft’s reasoning behind why the Xbox store should be treated differently will be familiar if you’ve heard the company argue in Epic’s favor before. Smith says legislation is being written to address app stores across PCs and phones but not game consoles like the Xbox. “Emerging legislation is not being written for specialized computing devices, like gaming consoles, for good reasons,” says Smith. “Gaming consoles, specifically, are sold to gamers at a loss to establish a robust and viable ecosystem for game developers. The costs are recovered later through revenue earned in the dedicated console store.”
Microsoft has previously revealed it doesn’t earn any profit on sales of Xbox consoles alone, and that thanks to a hardware subsidy model, “profits are generated in game sales and online service subscriptions.” This model is
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