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Microsoft Cuts Indie Royalties in Half - confirmed in post #13.

Gowans

Member
Sep 28, 2006
21,039
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0
South Shields, UK
twitter.com
Microsoft Cuts Indie Royalties in Half

News of Microsoft's democratization of Indie game development was overshadowed this week by an increasing discontent among established Indie developers that the company was halving the royalties paid to them for future projects, several well-informed sources told Kotaku.

Several developers directly effected by the cut told Kotaku that the once generous royalty share of 70 percent given to them by the company was within the past few months cut down to 35 percent.

The move, some believe, may be tied to Microsoft's future reliance on the recently announced initiative to deliver games created using the company's XNA software package to Xbox Live users for a still undisclosed price.

At least one developer I spoke with said they were considering moving over to Sony and its Playstation Network in light of the cuts.

Microsoft has been contacted for comment, but has not yet replied. We'll make sure to update as soon as we hear word.

Source: http://kotaku.com/359668/microsoft-cuts-indie-royalties-in-half

if true and after all this XBLA and XNA grandstanding what are they thinking!?!?
 

Psychotext

Member
Jun 15, 2007
35,928
0
1,175
There's enough devs here that we should be able to confirm this pretty quickly. If this is true then MS have thrown away anything they were trying to achieve with XNA from bad feeling alone.
 

Evander

"industry expert"
If true, that's some bullshit.

Before I get too pissed off, I want to know if this is the entire story, though, or if it's more like the GoW DLC debacle (where MSoft forced Epic to charge for it because MSoft WERE the publishers, and had invested a lot of money into the game to begin with.)
 

brain_stew

Member
Feb 20, 2007
19,261
1
1,215
One of the great things about XBLA was knowing I was directly supporting indie devs with the bulk of my money. Giving them such a minority share of the cash is an insult, there'd be no service in the first place without these guys.
 

KingGraham

Member
Jun 28, 2007
272
0
0
I realize this is a business, and money is the #1 motivation for everything...but damn, think in the long term for a change.
 
Jun 6, 2004
68,810
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1,570
indie devs should be so lucky as to get their dinky little indie games onto the glorious xbox live, amirite?

Evander said:
Just a thought...

What would you guys say if it turned out the reason for this is because they're making live free?
i would say this speculation is ridiculous.
 

Ghost

Chili Con Carnage!
Jun 6, 2004
18,900
3
0
37
UK
Wonder how they justify that, someone go get a quote from someone at GDC.


Maybe they hope to push all the indie games into XNA, save on the certification costs and move a big chunk of the development community into a MS only language.
 

dogmaan

Girl got arse pubes.
May 26, 2007
1,382
2
1,415
UK
Evander said:
Just a thought...

What would you guys say if it turned out the reason for this is because they're making live free?

that still wouldn't benefit indy devs, as silver accounts can still buy XBLA games
 

CrushDance

Banned
Sep 9, 2006
15,027
0
0
Evander said:
Just a thought...

What would you guys say if it turned out the reason for this is because they're making live free?
4,000,000 new LIVE users in the past 4-6 months. And a good chunk of that probably bought Gold. Very doubtful that MS would make it free when they rake in so much money from it monthly.
 
Jun 6, 2004
68,810
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1,570
Ghost said:
Wonder how they justify that, someone go get a quote from someone at GDC.


Maybe they hope to push all the indie games into XNA, save on the certification costs and move a big chunk of the development community into a MS only language.
"ya know, economies break"
 
Feb 15, 2006
10,024
20
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70%??

who the fuck honestly thought that would last? lol

sorry, but 35% sounds like business as usual.

plus, consider Live's userbase is ever-growing. So while royalties were slashed in half, you potentially sell to many more people.
 

Psychotext

Member
Jun 15, 2007
35,928
0
1,175
Evander said:
What would you guys say if it turned out the reason for this is because they're making live free?
I'd say I would rather pay than see developers screwed.
 

sneaky77

Member
Jan 15, 2008
8,245
1
0
so what's Sony's offering? this is all probably just posturing to negociate, cause it seems 70% is kinda high
 

monkspider

Member
Jan 12, 2007
1,209
0
0
Wichita
KingGraham said:
I realize this is a business, and money is the #1 motivation for everything...but damn, think in the long term for a change.

Exactly, this is a horrible decision and XBLA arcade and the XBOX platform in general will suffer because of it.
 

monchi-kun

Member
Feb 17, 2005
6,721
0
1,405
web.mac.com
Barkley's Justice said:
plus, consider Live's userbase is ever-growing. So while royalties were slashed in half, you potentially sell to many more people.

i'll pay you tuesday for a hamburger today???

sorry, indies already have it tough...itsatrap.gif is appropriate
 

WoWcraft

Banned
Feb 11, 2008
595
0
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Barkley's Justice said:
70%??

who the fuck honestly thought that would last? lol

sorry, but 35% sounds like business as usual.

plus, consider Live's userbase is ever-growing. So while royalties were slashed in half, you potentially sell to many more people.

That's like saying you'd rather win half of a lottery than the whole thing.
 

Link Man

Banned
Apr 2, 2007
13,212
0
1,050
-Forcing size limits on XLA games, effectively limiting HD textures.

-Slashing the cut that Indie developers get from sales.

-Rampant Live outages.

Can Microsoft do anything right this year?
 
Jun 25, 2006
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Kotaku. Rumor. No source.

Yup, it must be true.

Gowans007 said:
I normally trust Kotaku but no sources are the reason for the question mark.
Stop trusting them, they're trash and all they care about is sensationalism.
 

InterMoniker

Member
Mar 14, 2007
4,281
0
0
33
CrushDance said:
4,000,000 new LIVE users in the past 4-6 months. And a good chunk of that probably bought Gold. Very doubtful that MS would make it free when they rake in so much money from it monthly.
50x4,000,000= 200,000,000

:0

Jesus. I'm glad Sony didn't get greedy with their online service.
needlesmcgirk said:
Whats the cut for PSN?
I wonder what it is too.
 

Cheeto

Member
Sep 5, 2006
8,538
1
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Spirit of Jazz said:
So they were keeping the size limit tight to make fucking them so much more worth it?
I love it, "you get even less to use barely any of our bandwith/storage...it's a WIN-WIN"
 

Mojovonio

Banned
Jun 21, 2006
11,485
0
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LinkAMN said:
-Forcing size limits on XLA games, effectively limiting HD textures.

-Slashing the cut that Indie developers get from sales.

-Rampant Live outages.

Can Microsoft do anything right this year?

- Matrick : "GDC WAS A JOKE! NONE OF THOSE GAMES EXIST! LOL!!!"
 
Apr 10, 2007
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All this in the face of the rising WiiWare threat????


What were they thinking? WiiWare is proving to be quite the indie darling right now and they were betting on their arcade titles to attract the casual audience of the Wii.

Dumb move, MS, dumb move.
 

Zombie James

Banned
Dec 28, 2005
46,216
4
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sneaky77 said:
so what's Sony's offering? this is all probably just posturing to negociate, cause it seems 70% is kinda high

Yea, you know, 35% seems fair, they're only providing all the fucking content. Seems independent developers are being teated like the musicians of the video game industry.
 

MobiusPigeon

Banned
Sep 26, 2006
2,362
0
0
i'd think this would have everything to do with live games selling more and more as the userbase gets bigger. chances are in the end over time they'd still make as much money.

Yea, you know, 35% seems fair, they're only providing all the fucking content. Seems independent developers are being teated like the musicians of the video game industry.

yeah you know they could always release the games on PC and risk being unnoticed ans lost in the shuffle. I dont think you guys are thinking about the power of LIVE or een PSN. something like flOw that was free on PC and something someone would have probably never purchased actually made some dough on a console.
 

BSTF

this post rates 1/10
May 14, 2006
1,190
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35% still seems very good. And of course if developers have an issue with it, they can go somewhere else.
 
Jan 19, 2005
70,608
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www.benjaminbirdie.com
titiklabingapat said:
All this in the face of the rising WiiWare threat????


What were they thinking? WiiWare is proving to be quite the indie darling right now and they were betting on their arcade titles to attract the casual audience of the Wii.

Dumb move, MS, dumb move.

They obviously feel like they have strongest ecosystem for games and are lording it over motherfuckers.