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MS to take larger cut of best-selling Community Games

GameDaily BIZ got some details on the revenue sharing structure of the recently detailed Xbox Live Community Games. While we reported that developers could receive "up to 70%" of sales, Microsoft's Chris Satchell clarified the structure this way: "The better you're doing, the more we'll take." Sure, this sounds pretty cutthroat (newsflash: Microsoft is a business!) but the relationship here isn't dissimilar to traditional retail arrangements.

If your Community Game performs well, it will be plucked from the crowd and placed in the "storefront" where it should enjoy a great deal of promotion and, in turn, sales. Satchell says, "The game will spend most of its time at 70%, but if we're promoting you and you're getting more traffic, there will be a 10% to 30% marketing fee." Once it's out of the storefront – bam! – "you're back to 70% again." In other words, if you want more of your hard-earned ... uh, Microsoft Points to go to Bobby Developer and not Johnny Microsoft, wait until things have settled down a bit and the game has left the storefront for the relative anonymity of the crowd. Then, swoop in, make your purchase, and consider The Man stuck.

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