During the Google for Games Developer Summit, Google announced that they'll be taking a reduced cut on Stadia sales. Starting on October 1st, Google will take 15% of sales up to $3 million, a move currently scheduled to last until the end of 2023.
While Google's cloud gaming platform hasn't had the smoothest ride since launching in 2019, the revenue cut comes as a new measure to entice developers into working on their platform. Previously, we'd seen Google secured timed Stadia exclusives like Super Bomberman R Online, Wave Break and El Hijo: A Wild West Tale, though such games have since released elsewhere.
Google Reduces Stadia's Revenue Share To Attract More Developers
However, that comes with a huge drawback for shorter, single-player games. Starting this month, Google confirmed 70 percent of Stadia Pro's revenue will go to game developers that offer their games up as freebies on Stadia Pro. That's based upon engagement though, dependent on how frequently players log into those games. Worse still, that only applies to Stadia Pro's latest arrivals each month.
It follows a trend of platform holders taking decreased cuts in recent years. That took focus back in 2018 when Epic Games Store challenged Steam's 30% revenue split, instead offering developers 12%. Back in March, Google undertook similar measures with the Google Play Store, reducing that to 15% for the first $1 million earned. Similarly, Apple did the same last November, allow any developer who earns less than $1 million annually to qualify for a 15% cut instead.
Elsewhere, existing Stadia owners may be aware that July's Stadia Pro lineup was confirmed last week. Offering Moonlighter, Terraria, Street Power Football and The Darkside Detective, those are available now to Pro subscribers for no extra cost. We'll keep you informed as we learn more.