Microsoft to Give Windows Store Developers More Money Than Competitors
December 7, 2011 6:01 PM
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Windows 8 beta will launch in February with Windows Store
Multiple sources are
that Microsoft Corp. (
) has confirmed that its upcoming Windows 8 operating system will launch in beta test form to the public in February. The operating system is currently publicly available in the form of an earlier, rougher build
dubbed the "Developer Preview"
. The key message -- Microsoft is giving big developers much more of a revenue cut than its rivals, as well as providing them with other monetary advantages.
I. Window 8: Beta Launches in February, Complete With Windows Store
Despite the polished nature of Windows 7, which made it
the fastest-selling OS in history
, Microsoft appears to have been able to make all sorts of improvements for Windows 8 based largely on customer feedback. Among the improved features include a
less painful Windows Update process
decreased OS resource consumption
improved file transfers
streamlined upgrade process
for the initial installation, and switching to a primarily online sales distribution model.
of its upcoming Windows Store, its take on a PC app store (analogous to Apple, Inc.'s (
) recent Mac App Store), at a
special Tuesday press event
. It then posted most of these details in a
on its MSDN blog.
Unlike the Mac App Store that's
Apple's attempt to control all apps
, Microsoft's Windows Store is a bit more purpose driven -- it only accepts
. For those unfamiliar with metro, it's the colorful tile driven Microsoft style that pops in the Zune, on the web, and in Windows Phone. Metro UI is inherently touch friendly, and that's a big reason why Microsoft is pushing the Windows Store -- to promote touch friendly apps over a heterogeneous deployment base (tablets + laptops + desktops) that might otherwise lead developers to neglect the touch end of the spectrum.
An example Windows Store entry for a Metro UI app.
Like Google and Apple, Microsoft's approach could be called a "closed garden". You must meet Microsoft's standards and you must use the Metro UI in order for Microsoft to distribute your app. Of course those who don't like this can use traditional distribution means or other clients (like Valve), which should be compatible for Windows 8.
II. "Meet Innovation -- Money!"
"Meet innovation.... money!" --
[Image Source: YouTube]
Let's put the biggest developer perk up front -- after the first $25,000 USD in revenue -- which it will take an industry standard 30 percent cut on -- Microsoft will only take a 20 percent cut (lower than Google and Apple).
The company revealed that it was one-upping its competitors by offering several key improvements for developers. Unlike Apple, Microsoft offers the ability to set their app price in $0.50 USD increments, starting from $1.49 USD.
This isn't quite as flexible as Google Inc.'s (
) laissez-faire pricing for the Android Market/Chrome Web Store -- which allows any price -- but that may be a good thing. In Android Market, most developers set their apps at $0.99 increments anyways, in order to keep prices consistent with other platforms. But only small developers tend to engage in more chaotic pricing (e.g. $2.02 USD). In that regard, Google is more flexible, but by and large developers don't really seem to use or need that extra pricing control.
Apple, on the other hand tends to offer developers too little pricing options, mandating prices in $1.00 USD increments, starting from $0.99 USD. As with many things Windows 8, Microsoft takes the middle path of the two approaches, and arguably comes to a winning formula.
Microsoft promises support for "alternate transaction services" (e.g. subscriptions and other in-app purchases) and support for "multiple advertising platforms". But with its in-app purchases/subscriptions, it plans to freely allow developers to implement their own systems that it does not take a revenue cut of. This is in stark contrast to Apple and Google who route purchases through their respective markets, taking a cut. (Plus Google flat-out
does not allow
in-app subscriptions, a big issue.)
Google does not allow subscription purchases in apps. Apple allows them, but demands a full cut, prohibiting indepedent distribution. Microsoft will both let developers come up with their own fee-free subscription services or alternatively use its own easy subscription models for a small fee. [Image Source: Digital Lifestyle Gadgets]
Microsoft also allows developers to charge up to $999.99 USD, substantially more than the Android Market's price limit of $200.00 [
]. This is similar to Apple, but Apple cuts down on your pricing choices at higher prices -- it only allows $5 USD increments from $49.99 USD to $99.99 USD; $10 USD increments from $99.99 to $249.99 USD; and $50 USD increments from $249.99 USD to $399.99 USD; and $100 USD increments from $399.99 USD to $999.99 USD.
III. Windows Store -- the Biggest Developer Opportunity?
While Apple and Google would disagree, on Microsoft's blog it plugs the new Windows Store's as an unmatched developer opportunity, writing:
Windows presents the largest single platform opportunity for developers, with 500 million Windows 7 licenses sold around the world to date.
The Windows Store will be global, enabling developers to sell their apps in any of 231 markets and in more than 100 languages.
Like the iTunes App Store and Android Market, Microsoft will work to try to make sure that all its Windows Store apps appear in the search results of the most used search engines. It will also include a built Windows Store search button in its upcoming Internet Explorer 10 browser, set to launch alongside Windows 8.
When Windows 8 usrs visit the website of an app in Internet Explorer 10, code launches a "Get the App" button (see bottom right), which allows users to directly visit the app's Windows Store web entry.
For the Beta, all the apps in the Windows Store will be free. Only select apps will be available. Developers who wish to be considered for enrollment will have to apply to this contest of sorts, at
While free, ad-support will be fully live in the beta stage apps. Paid app purchases will go live at the Windows 8 launch date, which is tentatively slotted for Fall 2012. Free apps from the trial period will be fully available for conversion to a paid app, at launch, similar to preview versions in the Windows Phone Market.
Windows Store is the only place where home users can get Metro apps, indicating that Windows 8 will use digital rights management to control Metro UI accessibility. Fear not, though, business users -- IT and corporate deployments will be free to make their own third party Metro UI apps, which are exempted from the requirement of going through the Windows Store.
(All images are from Microsoft in this article, unless otherwise noted.)
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RE: So this is why Microsoft is always late to the table
12/8/2011 9:26:00 AM
Phone is one thing, and Android might just be the best all around phone OS (although i personnaly don,t like it). Plus you can easily live with your phone not sharing the same environment as your home/work PC.
Tablets might be another matter. Apple proves that iOS integration with iPhone and Mac is a big plus. Especially when you have a 16GB tablet and 3G data cap but gazzillion of videos on your PC and all over the internet, PC-tablet integration is a definite advantage. Android tablets are not that popular even after one year on the market. I wonder how many Honeycomb tablets were sold compared to WP7 phones....
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