Microsoft will give GameStop a share of Xbox’s digital revenues – Ars Technica

Microsoft will give GameStop a share of Xbox’s digital revenues – Ars Technica

Microsoft will give GameStop a share of Xbox’s digital revenues
Aurich Lawson / Microsoft / Getty Images

In a seemingly unprecedented deal, GameStop will now share in the lifetime digital sales revenue—including for full game downloads, DLC, and subscription plans—for any Xbox console sold through its stores. How much that arrangement will impact the bottom line for the struggling retailer is still an open and heavily debated question, though.

The first sign of this new revenue-sharing arrangement actually came somewhat hidden in a press release GameStop issued last week, trumpeting a “Multi-year Strategic Partnership with Microsoft.” That announcement focused heavily on GameStop agreeing to use Microsoft’s cloud-based infrastructure for its back-end sales systems and a deal for store associates to start using Microsoft Surface tablets going forward.

Buried in that press release, though, was a vague sentence that could be much more important to GameStop’s future: “GameStop and Microsoft will both benefit from the customer acquisition and lifetime revenue value of each gamer brought into the Xbox ecosystem.”

While casual readers probably missed the potential import, investors homed in on that sentence. “I received an email from [GameStop Investor Relations representative] Eric Cerny and in the email he said, ‘We are allowed to state we will receive a portion of the downstream revenue from
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