Microsoft will reduce the distribution it receives from PC games sold through its store from 30% to 12%. [The reduction will take effect on August 1, and Microsoft will take the same reduced rate of revenue as Epic, which has used it to attract developers since the launch of the Epic Game Store.Valve will collect 30 percent from standard sales of games sold on Steam, but sales reaches $10 million, the rate is reduced to 25 percent, and after $50 million, the rate is reduced to 20 percent. [Matt Booty, head of Xbox Game Studios, said on his blog, "Game developers are at the heart of delivering great games to players, and we want them to be successful on our platform. Matt Booty, head of Xbox Game Studios, said in a blog post. That's why today we are announcing an update to the Microsoft Store Terms of Service for PC game developers."

"As part of our commitment to helping all PC game creators achieve more, effective August 1, the developer share of net revenue from Microsoft Store PC game sales will increase from 70% to 88%. Clear and unconditional revenue sharing means that developers will be able to offer more games to more players and thereby achieve greater commercial success.

Sarah Bond, Head of Game Creator Experience & Ecosystems, also wrote about the decision to reduce PC sales revenue. As we look to the future, we are committed to providing opportunities for PC game creators across all aspects of our business, including technology, publishing services, and financial business models." All to unleash creativity, foster innovation, and delight gamers."

Bond said the purpose of the 12/88 split is to "reduce friction, increase financial opportunities, and help game developers do what they love to do: make games."

The news follows a recent GDC survey in which only 3% of developers said a 30% cut to Steam was appropriate, while 44% said a 10-15% cut would be more appropriate.

Both Booty's and Bond's contributions are very PC-centric, a refreshing change given Microsoft's (somewhat understandable) focus on Xbox consoles in recent years. It seems that Microsoft wants to involve PC players more in decisions regarding their games. Their first request is to make Viva Pinata playable on the PC once again.