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As part of a newly announced deal between Microsoft and GameStop, the ailing video game retail giant will earn a share of digital sales revenue from every new Xbox the company sells.

That’s in addition to a variety of other measures, GameStop confirmed to the investment firm DOMO Capital Management this week.

The agreement “includes revenue sharing on all downstream revenue (i.e. digital downloads and digital content) from any device that GameStop brings into the Xbox ecosystem,” DOMO Capital tweeted on Tuesday. “GameStop now meaningfully participates in digital.”

In other words: For games or other content purchased from an Xbox device GameStop sells, GameStop will get a cut of the revenue, even though that purchase was through Microsoft’s Xbox store after the console was purchased. 

Microsoft confirmed the revenue sharing agreement in a statement to Business Insider. “We have an incentive structure with GameStop as we do with many of our partners across multiple channels,” the statement said.

Despite being the world’s largest video game retailer, GameStop has struggled to stay afloat amid increasing competition from digital game stores.

Like Blockbuster Video and Tower Records before it, video game retail faces major challenges to its business model. As more people buy video …read more

Source:: Businessinsider – Tech


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