Microsoft Corporation (MSFT) > Articles
bids
4
4
Microsoft Corporation (MSFT)
Xbox Live Arcade: Screwing the Little Guy
Xbox Live Arcade: Screwing the Little Guy
kombo - August 30, 2008
Submitted by noobie (468) at 6:45AM PST on August 30, 2008
If an independent developer can manage to keep their 70%, Microsoft has a back door approach to choke their bottom line. MS can choose at their discretion to "market" any XBLA title and take an additional 30% cut of the profits.
Some foreign XBLA developers don't even realize that they are getting screwed by Microsoft on the point-to-dollar exchange rate.
This entire process exists to basically nickel and dime every possible drop of profit from the independent developers.
Discussion - Submit a comment
bids
2vGInfidel posted on Microsoft Corporation (MSFT) at 9:11AM PST on August 30, 2008. RE: Xbox Live Arcade: Screwing the Little Guy@noobie,
Heard about this months ago and im fairly sure it was posted as an article on here.
Also i believe it isnt entirely at Microsofts discretion whether to market the title and take the 30%, That would breach the contract. Microsoft chooses which games it would like to market and then negotiates with the developer on the % fee it will charge, up to 30%. The developer can opt out of the marketing if it doesnt want to and keep the 30%.
The article seems completely anti-Microsoft in its approach and fundamentally fanboyish. Trying to paint Microsoft as the big evil money stealing corporation. I find it funny that they take this approach when Microsofts game division has lost ALOT of money and yet Nintendo are making billions at the moment.[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
4noobie posted on Microsoft Corporation (MSFT) at 6:45AM PST on August 30, 2008. Article: Xbox Live Arcade: Screwing the Little GuyIf an independent developer can manage to keep their 70%, Microsoft has a back door approach to choke their bottom line. MS can choose at their discretion to "market" any XBLA title and take an additional 30% cut of the profits. Some foreign XBLA developers don't even realize that they are getting screwed by Microsoft on the point-to-dollar exchange rate. This entire process exists to basically nickel and dime every possible drop of profit from the independent developers.[ Oracle ] [ Level 20 ] [ Rank: 468 ]
About Us - The simExchange is the video game stock market and the source
for video game sales forecasts.
1
This article isn't presenting all the facts - deliberately I suspect. Its heavily biased, and as such less useful in its assessment of the situation. I encourage people who want to know more about the profit share to look into this properly - the article doesn't explain the circumstances under which the percentages differ.