When Microsoft was trying to court developers into making more apps for the Windows Phone platform, which at this point is still lagging behind the likes of iOS and Android, they put a lot of effort into it and did all they could to make it easier for developers to create apps for their platform, but it looks like that goodwill could be coming to an end. Previously Microsoft had arranged it so that whatever developers sold, Microsoft would take a 30% cut, with that cut dropping to 20% if the app raked in more than $25,000 in sales. Sounds like a good deal, right? Unfortunately it seems that come 2015, Microsoft will be making some changes to the developer agreement where Microsoft will start taking more money.
Beginning January 2015, Windows developers will be at a disadvantage when it comes to making money using their apps submitted in the respective app stores. Currently, Microsoft takes a 30 percent cut on the revenues generated through the app sales, with 70 percent going to the developers. Upon reaching $25,000 sales, the cut is reduced to 20 percent, making it more attractive for developers to create apps for Windows and Windows Phone. The 20 percent caveat is only applicable until 31st December, 2014. If you take a closer look at the App Developer agreement, it states, “For the Windows Store: The Store Fee for Apps made available in the Windows Store is thirty percent (30%) of Net Receipts, unless and until your App takes in total Net Receipts of USD$25,000, after which time the percentage is 20% for that App. The twenty-percent (20%) Store Fee will be in effect until December 31, 2014. For the Windows Phone Store. The Store Fee for Apps made available in the Windows Phone Store is thirty percent (30%) of Net Receipts, except for transactions subject to the Commerce Expansion Adjustment, for which the Store Fee shall be forty-three and nine-tenths percent (43.9%) of Net Receipts.”