Microsoft on Tuesday announced changes to its revenue sharing model with developers that will significantly undercut Apple and Google.

microsoft store apps
Starting later this year, the company says developers will receive 95 percent of the revenue earned from sales of their apps, in-app purchases, and new subscriptions on the Microsoft Store, excluding games and apps sold in volume to organizations, but only when a customer uses a direct link to access and purchase the app.

If the customer was referred to the app by Microsoft, such as in a featured collection on the Microsoft Store, developers will receive 85 percent of revenue. The new fee structure will apply to Microsoft Store purchases on all Windows and Surface platforms, but excludes purchases on Xbox consoles.

Microsoft presumably hopes reducing its commission to just five percent will encourage developers to create apps for its platforms. Microsoft, Apple, and Google all currently pay developers 70 percent of revenue earned from purchases on their app stores in what has long been the industry standard.

As of the end of 2017, the App Store and Google Play had an estimated 2.1 million and 3.5 million apps available. Microsoft last confirmed having over 669,000 apps in what was then called the Windows Store in September 2015.

Top Rated Comments

ArtOfWarfare Avatar
91 months ago
This sounds extraordinarily fair and I love it.

Apple tries to justify their cut saying that they're promoting your app which is leading to some of your sales. That's total BS - 99% of my sales came from when MacWorld ran an article on an app I was selling. If Apple really did anything to drive my sales, MacWorld wouldn't have had such a major impact.

I love that Microsoft isn't trying to argue they're driving all of your sales, and will only be taking a marketing cut when they have actual evidence that their promotion had something to do with your sale.

The 5% is still a bit... well, that's way more than what it costs Microsoft to host the store and your app and facilitate everything, but it's small enough that I don't mind (particularly when it's just 1/6th of what other stores charge.)

I really want to just host my apps myself for iOS. I'm grudgingly willing to give Apple $99/year for a signing certificate, but the 30% cut to put your app in a store where it gets less attention and fewer downloads than it could get elsewhere* really ticks me off.

*Perhaps theoretically. Apple doesn't even let you test that theory, lest you discover how useless they are.
Score: 17 Votes (Like | Disagree)
Petetastic Avatar
91 months ago
Given the number of people who are actually enamoured with MS, I don’t expect this to be much of a draw.
Score: 7 Votes (Like | Disagree)
brinary001 Avatar
91 months ago
Wow I'm sure all 10 of the Windows Store developers that are left will be thrilled :rolleyes:
[doublepost=1525792192][/doublepost]
Most developers will continue to develop for multiple platforms.
Yes but only if they're required to professionally, be it for a company or freelance. Otherwise why would you develop for any other platform besides Apple? I say this as a dev myself. The idea of targeting a thousand different devices all with different resolutions, processing power and other specs, just sounds like hell.
Score: 6 Votes (Like | Disagree)
Marshall73 Avatar
91 months ago
This sounds extraordinarily fair and I love it.

Apple tries to justify their cut saying that they're promoting your app which is leading to some of your sales. That's total BS - 99% of my sales came from when MacWorld ran an article on an app I was selling. If Apple really did anything to drive my sales, MacWorld wouldn't have had such a major impact.

I love that Microsoft isn't trying to argue they're driving all of your sales, and will only be taking a marketing cut when they have actual evidence that their promotion had something to do with your sale.

The 5% is still a bit... well, that's way more than what it costs Microsoft to host the store and your app and facilitate everything, but it's small enough that I don't mind (particularly when it's just 1/6th of what other stores charge.)

I really want to just host my apps myself for iOS. I'm grudgingly willing to give Apple $99/year for a signing certificate, but the 30% cut to put your app in a store where it gets less attention and fewer downloads than it could get elsewhere* really ticks me off.

*Perhaps theoretically. Apple doesn't even let you test that theory, lest you discover how useless they are.
So, make a website for your app, pay for the site design and hosting and the payment processing fees. Now pay for promotion, SEO and advertising. Send a copy of your app to reviewers and influencer bloggers.
Score: 4 Votes (Like | Disagree)
guzhogi Avatar
91 months ago
The 5% is still a bit... well, that's way more than what it costs Microsoft to host the store and your app and facilitate everything, but it's small enough that I don't mind (particularly when it's just 1/6th of what other stores charge.)

I really want to just host my apps myself for iOS. I'm grudgingly willing to give Apple $99/year for a signing certificate, but the 30% cut to put your app in a store where it gets less attention and fewer downloads than it could get elsewhere* really ticks me off.
I wonder how much it really costs Apple to run the App Store? Obviously, they have to pay for the servers, the power, their internet connection, and people to maintain all that. Makes me wonder what the break even % is?
Score: 3 Votes (Like | Disagree)
Cosmosent Avatar
91 months ago
Hey Microsoft,

if you want to gain some traction, figure-out how Devs can offer their apps via their own websites, while still using your Payment Infrastructure ...

the main problem with the iOS App Store is NOT Apple's cut, it's that Apple has a complete Stranglehold on App Discovery ... it was Broken Badly before Phil Schiller took over, but now it's Catastrophically Broken ... their Rankings algorithm is horrible ! ... NO User Controls for Search ... the single-best thing you could do to gain traction is to let Devs start selling their Apps outside of any App Store.

The strategy will need some kind of Trusted Symbol / Mechanism in-place, but shouldn't be too hard to implement.

The iOS App Store is primarily for the Young & the Dumb ... by enabling Devs to sell their Apps OUTSIDE of an App Store, then the Educational Bar can be raised, perhaps significantly.

You might be surprised how many iPhone Users have NO clue as to how much DRAM is in their device, OR that it actually contains any DRAM.

All smartphones are simply "fancy computers," but I'd bet half of ALL iPhone owners don't even know that.

That's just one example of where the Educational Bar needs work !

Discovery is MORE-important than pricing.

BTW, the ONLY people on the planet who think the iOS App Store is doing well ARE Game & Streaming Media Content companies ... traditional Apps have had little / NO success.

But that can easily change !
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iphone 17 dummies sonny dickson

iPhone 17 Air Almost as Thin as Its Buttons, New Images Show

Thursday April 24, 2025 2:14 am PDT by
If you missed the video showing dummy models of Apple's all-new super thin iPhone 17 Air that's expected later this year, Sonny Dickson this morning shared some further images of the device in close alignment with the other dummy models in the iPhone 17 lineup, indicating just how thin it is likely to be in comparison. The iPhone 17 Air is expected to be around 5.5mm thick – with a thicker ...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
Global Close Your Rings Day Pin

Apple Stores Giving Away a Limited-Edition Pin For Free Today

Thursday April 24, 2025 10:15 am PDT by
Starting today, April 24, Apple Stores around the world are giving away a special pin for free to customers who request one, while supplies last. Photo Credit: Filip Chudzinski The enamel pin's design is inspired by the Global Close Your Rings Day award in the Activity app, which Apple Watch users can receive by closing all three Activity rings today. The limited-edition pin is the physical...
Apple Logo Spotlight Blue

White House Hits Back at Apple's Massive EU Fine

Thursday April 24, 2025 5:57 am PDT by
Apple's $570 million fine from the EU has triggered a sharp rebuke from the White House, which called the fine a form of economic extortion, Reuters reports. The fine was announced on Wednesday by the European Commission, following a formal investigation into Apple's compliance with the bloc's Digital Markets Act (DMA), a landmark piece of legislation aimed at curbing the market dominance of ...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
ipad air magic keyboard feature

iPadOS 19 Rumored to Show Mac-Like Menu Bar When Connected to Magic Keyboard

Thursday April 24, 2025 12:09 pm PDT by
When an iPad running iPadOS 19 is connected to a Magic Keyboard, a macOS-like menu bar will appear on the screen, according to the leaker Majin Bu. This change would further blur the lines between the iPad and the Mac. Bloomberg's Mark Gurman previously claimed that iPadOS 19 will be "more like macOS," with unspecified improvements to productivity, multitasking, and app window management,...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...