You’re confusing 2 different things. Microsoft isn’t demanding a “cut,” it’s demanding its business units achieve a 30% profit margin on its investment. I think industry standard is closer to 10% once you factor in games that don’t make a return on their investment.

Valve isn’t trying to make a bunch of games with AND pay for/off all the studios they bought, all while trying to advertise and compete with Sony and Nintendo in hardware.

Steam just sits back and takes money, for the most part. The hardware/software/advertising spend is probably a drop in the bucket compared to MS.

30% on $10M and under. 25% on $10M to $50M. 20% on $50M+.