Microsoft lowering its take rate to 12% on its PC store is about creating the same dynamics that Xbox has on console

- Bring more games to MS Store
- Strengthen Game Pass on PC
- Drive spending in MS Store with discounts for Game Pass subs
- Position Xbox as a PC platform too https://twitter.com/tomwarren/status/1387753565805060097

Xbox owns the storefront for its console platform and it earns a cut of all third party content sales.

But Xbox as a console platform has a limited audience, whereas PC (and mobile) have larger potential audiences.

Right now, Steam is the largest storefront on PC.

As per the first tweet, this move is about strengthening not just Game Pass, but the Microsoft store offering overall.

Give devs a reason to support MS Store.

Acquire more PC players through Game Pass, drive them to the Microsoft store for additional content purchases.

Ultimately the end goal here is to create a unified Xbox offering across all devices + Cloud, with cross play / progression etc...

Xbox has a strong offering on console, but its PC offering needs work and mobile (Cloud) is still early.

The challenge is making it all work.