Microsoft rumored to let OEMs in on app revenue stream

Microsoft will launch Windows 8 with its Windows Store feature that allows users to purchase and download Windows 8 Metro apps directly. However, the company will have an uphill battle in terms of offering apps in the numbers that Apple does for its iOS App Store and that Google does with its Android-based Google Play store.

Today, Digitimes reports via unnamed sources that Microsoft is trying to jump start app development on Windows 8.  The story claims that Microsoft is offering Windows 8-based hardware makers a way to share in the profits from Windows 8 apps. If those same hardware makers recommend specific Windows 8 apps to their users, they could also get some of the profits of the apps, according to the article.

If this story is indeed true, it could give PC makers a new revenue source besides just selling the hardware with Windows 8 installed. No specifics about this rumored profit sharing plan were revealed.

Windows 8 app developers will receive 80 percent of the revenues from their apps from Microsoft, which is higher than the 70 percent offered by Apple's iOS App Store.

Currently, the Release Preview version of Windows 8 just offers up free versions of Windows 8 apps but paid apps will be launched around the time of the final shipping version of Windows 8 later this year.

Source: Digitimes

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11 Comments

Revenue sharing starts at 70% though, but after the first 25k of sales it then goes up to 80%.

Anyways, on topic, I think this idea is fine, I mean why not? OEMs have always had deals with other software makers to push their own apps, like installing Norton or PowerDVD on new systems. This just sounds like an extension of that but covering apps through the Windows Store.

GP007 said,
Revenue sharing starts at 70% though, but after the first 25k of sales it then goes up to 80%.

Anyways, on topic, I think this idea is fine, I mean why not? OEMs have always had deals with other software makers to push their own apps, like installing Norton or PowerDVD on new systems. This just sounds like an extension of that but covering apps through the Windows Store.

It will depend by how OEM will "advertise" these apps. For years people were complaining about the crapware pre-installed by OEM on their new boxes................
Of course it will not an issue for the vast majority of the people here who could format and reinstall, still I remember the old days of Dell and HP boxes full of Office, Norton etc. etc. trial programs...............

Fritzly said,
...still I remember the old days of Dell and HP boxes full of Office, Norton etc. etc. trial programs...............

They still do that.

Fritzly said,

Dell offered boxes free of the junk programs; not sure about HP though. And MS did it too:
http://www.wired.com/gadgetlab...ut-crapware-just-like-macs/


The vast majority sold today (like 95% or more) come with all the crap. HP, Dell, Acer, Sony, ASUS, Toshiba, MSI, Gigabyte, Samsung etc. they all do it.

Yeah Microsoft Store offers the service of removing the crap for $99, but the PCs still come with the crap, you just have to pay money to get rid of it. Not to mention, if you're outside of the US then that's not even an option.

"Windows 8 app developers will receive 80 percent of the revenues from their apps from Microsoft, which is higher than the 70 percent offered by Apple's iOS App Store."

Not really. Windows 8 app developers will receive *up to* 80 percent of the revenues. Microsoft states that "the revenue share base is 70%, but when an app achieves $25k USD in revenue [...] that app moves to 80% revenue share for the lifetime of that app."

This is curious to me that with the phone all they could ever talk about were the apps, and now for the first time a conversation is being started about the lack of apps available for Win 8.

I kind of though all along there would be an issue there. I think Windows 8 will bring in the next wave of Microsoft computing in a good way, but the transition will certainly weed out even more folks over to the Apple side. Maybe that's a good thing. A lot less crybaby's in the Win forums maybe?

A KILLER Microsoft Office Metro will be the key, along with KILLER Photo Editing, Video Editing, and photo and video "project creation tools" for consumers. I think this aspect has been long ignored. I know about Live Photogallery and how good it is, but a hell of a lot of my customers didn't even know it existed till I showed them. That's a big fat huge glaring problem that MS needs to address.

With all that room on those "swipe bars". I'd like to think there is a LOT of room for big fat tutorial buttons on how to do stuff.

you must be on crack if you dont think a massive amounts of apps will be available at launch. theres are close to 100 millions new pcs with windows 8 that will be released in a quarter, what kind of idiot developer wouldnt want in on that? thats like half the ios base in 3 months time. we all know these apple or google bloggers/commenters are shaking in their boots and try to create a negative perception because their platform will soon become irrelevant. have people forgotten this is windows,which %90 of the planet use. windows 7 has just sold 600 million copies,and thats not counting all the pirated material. add in all the vista users and xp that could upgrade, you got a massive ****in base that can make any developer rich overnight.

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