If Microsoft matches or even beats the best rates in the industry by only taking 10-12% of revenue - leaving 88-90% of all revenue to the developers - it may help Microsoft secure major partnerships for its store such as Fortnite or Genshin Impact, which in turn will attract consumers and then coerce smaller developers to spend their limited resources on a platform that will, hopefully, make them more money than they would've gotten on more established platforms. For an Xbox mobile store to have any chance of convincing developers to invest time and resources to port their games and apps, Microsoft needs to offer a competitive revenue cut for developers on in-store and in-game purchases. The Epic Games Store also only takes 12%, which is a huge incentive for developers to put their games on the platform. However, on PC, Microsoft only takes 12% from purchases made in its store, and allows developers to retain 100% of their revenue by using their own commerce platform (with the exception of games, which always gives Microsoft 12%).

This also matches the revenue that both Microsoft and Sony take from all game sales on Xbox and PlayStation. Both Apple and Google take a staggering 30% cut from all purchases done through their stores, matching Steam on PC (Google only takes 15% of developers' first $1 million in revenue). One way this can be done is by guaranteeing a higher revenue cut for all in-store and in-game purchases. But that won't be enough to attract consumers Microsoft needs third-party developers fully on board to get more games into the Xbox mobile store and provide a meaningful, worthwhile alternative to more established markets.

Microsoft game launcher