Windows Phone, Windows 10, and Windows 10 Mobile app developers will soon see a little less money for the apps and in-app purchases from gift cards. Microsoft sent an email to those developers late on Friday informing them of the new 2.24% “Commerce Expansion Adjustment” that will go into effect in March.
In the email. Microsoft noted that the company recently launched new versions of its Windows Store and Xbox gift cards, both of which can be used to buy apps and in-app purchases in the Windows Store. The email also said those cards are available in 41 markets around the world.
Microsoft stated the higher costs of gift cards, due to packaging, along with revenue sharing with partners and the recent market expansion for these cards, are the reasons why it has decided to add this new “Commerce Expansion Adjustment” percentage cut for all gift card-based app purchases. Microsoft says:
“The Commerce Expansion Adjustment is an additional percentage on top of the normal Store Fee (percentage of Net Receipts) that is deducted in calculating the Apps Proceeds payable for apps or in-app product transactions using gift card.”
So far, there’s no word on how much money app developers typically get from purchases made from gift cards, so it’s hard to figure how exactly how much this new “adjustment” will affect their revenues.
Thanks to Wpenvy for the tip!