Samsung will cut its Galaxy Store commission to 80/20 for games

Samsung reduces Galaxy Store commission on games to 20%.

: Samsung announced a reduction in its commission for game apps on the Galaxy Store from 30% to 20% ahead of the Game Developers Conference. This strategic move positions Samsung to better compete with Google's Play Store, which enforces a 70/30 split but offers a 15% cut for the first $1 million developers earn. Despite the Galaxy Store's smaller market size compared to Google's, this change could attract more game developers to benefit from greater earnings. The new revenue-sharing model takes effect on May 15, 2025, promising improved profitability for developers using Samsung's ecosystem.

Samsung recently announced a significant change to its revenue-sharing policy for game developers using the Galaxy Store. The company will implement an 80/20 revenue share model, reducing its commission from the previous 70/30 split. This change means developers will retain 80% of their app's revenue, a move that seeks to improve attractiveness and competitive edge against other app distribution platforms. Mariella Moon from Engadget reports that the decision comes as part of Samsung's announcements ahead of the annual Game Developers Conference (GDC).

The shift in the revenue-sharing model marks a strategic positioning by Samsung to offer better financial terms to developers in comparison to Google's Play Store. Although Google's terms include a 15% commission for the first $1 million in revenue each year, Samsung's constant 20% allows developers to gain more as their earnings grow without the stepped increase. Economic benefits could entice developers primarily using Google's platform to consider Samsung's, especially as the Galaxy Store is pre-installed on millions of Samsung devices worldwide.

Another aspect of the new policy is that it applies to games developed on Samsung's cloud gaming platform. This method enables users to stream games without needing to download them, broadening access and usability for end-users. The emphasis on cloud gaming aligns with industry trends favoring digital over physical media, reflecting a broader shift in gaming consumption patterns. Samsung's adjustment could enhance market share within this growing domain.

Despite the Galaxy Store’s smaller scale compared to Google's Play Store, the modification holds promise for developers aiming for increased profitability. Even for those whose primary audience exists through Android's Play Store, an 80/20 split offers advantages of higher profit margins. This could potentially spark a shift in developer preferences and signify Samsung's strategic efforts to increase the appeal of its proprietary marketplace.

The launch of the new revenue-sharing model is scheduled for May 15, 2025. This transition period gives developers time to navigate the implications of the new policy on their business strategies. The engagement of developers is central to Samsung's competitive strategy, working to cement itself as a viable, even advantageous, option in a market largely dominated by Google.

Sources: Engadget, Samsung Newsroom.

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