Microsoft Reveals Details on Windows 8 Store and Apps Pricing

Finally, Microsoft Corporation (NASDAQ:MSFT) has revealed details that we all were eagerly waiting for. The Redmond company has announced details via the MSDN blog about the pricing, payment, monetization and trial period of apps which can be purchased from Windows Store.

Microsoft Corporation’s Windows Store is like Apple Inc. (NASDAQ:AAPL)’s Mac Store. Those who are using Windows 8 can purchase Metro apps from Windows app store. Till now, we didn’t know a thing about the pricing structure, or how Microsoft would deliver those apps, but now the company has clarified about these details via a blog post.

Microsoft has announced that the minimum cost of paid apps would be $1.49. This means that app developers will need to price their apps, at a price of at least $1.49, which is 50% more than most of the other platforms. The maximum pricing that the developer can set for their app can be $999.99.

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Microsoft Reveals Details on Windows 8 Store and Apps Pricing

Those who purchase the app have a trial period of 7-days, which enables users to try out a fully functional trial version. Users will need to simply click on the “Try” button from the app description page to get access to that app, before deciding to purchase it. However, the trial option is at the discretion of the developer, and is not compulsory. If a trial period is offered, then it can increase conversion rate, and Microsoft explains this by giving an example of Windows Phone, where the company have observed that apps with trials bring up to 5 times the revenue, compared to apps without trials.

Now talking about in-app purchases. Microsoft says that in-app purchases will offer the chance to collect more revenue from customers, as they get more value from the app. Developers can sell new functionality for the app, for example, Sticker Tales will be offered as a free app in the Store, but those who want to get additional game content, like the Unicorn pack or Stunt cars pack, they can purchase that particular pack.

Developers will be paid after a period of 30 days of sales occurs. To receive a payment, developers will need to accumulate $200 or an equivalent of in-app sales. Microsoft will also charge store fees which are set at 30% of the app price, until your app reaches $25,000, or the equivalent of lifetime sales, after which, the charges are decreased to 20% of the app price.

Now that these terms and conditions have been revealed by the company, app developers and consumers know how they can benefit from the Windows App Store.