Microsoft to Allow Third-Party Payment Systems on Windows Store

Microsoft has implemented a policy change for the Windows Store allowing non-gaming application developers to utilize third-party payment systems, effectively enabling them to retain 100% of their revenue. This policy, which took effect on July 28, 2021, explicitly excludes game developers from this benefit. The company maintains that its standard commission structure remains necessary for the gaming sector, citing the financial model of selling Xbox consoles at a loss as a primary justification for retaining a percentage of game sales.

While the 100% revenue retention model is restricted to non-gaming software, Microsoft has separately adjusted its commission rates for the Windows Store. As of August 1, 2021, the company reduced its platform fee to 15% for applications and 12% for games. This tiered approach reflects a strategic distinction between general software distribution and the gaming ecosystem, where the company continues to leverage platform fees to offset hardware-related costs.

In a separate development, Microsoft has expanded its internal research capabilities with the launch of Xbox Labs. This new division, led by technical director Scott Van Vliet, focuses on exploring emerging technologies, particularly artificial intelligence, to enhance game development processes. By investigating techniques such as neural network-based porting and modification, the team aims to develop tools that will eventually be shared with both internal Microsoft teams and external studios. This initiative highlights a broader corporate focus on technological experimentation within the gaming division.