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Comment by lrae | Hacker News Reader

Yeah, not sure where the idea comes from that Microsoft fronts like the entire development cost for ... for what even? As a publisher? Sure, maybe.

For games coming to Game Pass? No.

Same for the EGS, it's not like they front all those games. (Most exclusivity is bought way later in the process.)

But the original comment is pretty much Windows Phone back then. To this day I have no idea why Microsoft was so cheap and didn't even try to get developers on their platform. Rip Lumias, some of you were some great devices.

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> How do you pay out developers? I’m a developer, I make a game, I say I’m going to put it in Game Pass, a customer pays [you] $14.99 a month. How do you decide how much to pay me, the developer?

> [Phil Spencer, head of Xbox:] [In] certain cases, we’ll pay for the full production cost of the game. Then they get all the retail opportunity on top of Game Pass. They can go sell it on PlayStation, on Steam, and on Xbox, and on Switch. For them, they’ve protected themselves from any downside risk.

https://www.theverge.com/21611412/microsoft-phil-spencer-int...

GamePass deals are fixed price, the "full production cost" is not an exact truth. For most indies the deal price represents an over shoot over costs, or just a large percent of cost. This is logical: no one ever shares their internal production costs. Like any business you treat business partners at arm's length.

Source: gamedev who has heard from serveral devs who got offers.

My point of reference here is from this twitter thread.

https://twitter.com/RaveofRavendale/status/13094734056039096...

"With Nowhere Prophet, it was an interesting case because we were also launching on Xbox Game Pass at the same time, which had essentially already secured financial success for the console versions"

Not exclusive, still got a significant chunk of cash.

Having the money to port a game to console is great, but usually not comparable to fronting the full development of a game.

There might be a couple where Epic might have done that (kind of, I know they saved some games), but I don't think Microsoft funded any development for a gamepass game so far. (From a third party, not published by Microsoft.)

Epic exclusives have generally been provided in the form of a revenue guarantee on projected sales, I believe. Essentially, they're not paying much of anything if the game is successful and profitable on it's own, but if it tanks, the developers still get paid as if it did not.

For an indie developer, this basically means worrying about whether the game will succeed a non-issue prior to launch.

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