Google is changing their terms on the standard 30% cut of developer fees on the Google Play Store. Following years of taking a substantial cut of developer revenue, Google will sightly change tact.
Announced on the Android developers blog, Google revealed that developers will be able to take 85% of revenue in certain circumstances. However, this change only applies for the first $1 million of revenue a developer resend every year.
How beneficial is this change for devs?
Google’s change to Play Store revenue could be a game changer for smaller studios making niche products. By giving developers far more leniency on their income from the Play Store, studios can become far more profitable.
“With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees,” Google explains. “These are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more.”
All studios will benefit from reduced fees on the first $1 million of revenue, no matter the total revenue stream they rack up. While large publishers like Tencent may take in many millions a year from the Google Play Store, they’ll still have reduced fees on the first million.
Why is Google changing Play Store revenue?
The discourse surrounding developer revenue on services such as Google Play or the Apple App Store have been rampant. With companies like Epic Games filing lawsuits over revenue streams, Google could be feeling the pressure to change views.
Furthermore, the Android community has a lot to gain from this. If Apple refuses to take down their revenue barriers, smaller teams could make their products for Android instead. Niche products, such as hardcore art applications or video editors, could make some extra money on Android that they might lose from a lack of install base on the service.