The secret Windows Phone money-making trick: patent royalties and Xbox Live games

The secret Windows Phone money-making trick: patent royalties and Xbox Live gamesMicrosoft's Windows Phone 7 hasn't exactly set the world on fire, and even if the Mango-flavoured version 7.5 proves a major success, WinPho can comfortably triple or quadruple its market share (depending on who you listen to) before it even breaks double figures.

But in the meantime, Microsoft doesn't seem to complaining, and now we know why: it's quietly raking in the cash from licensing deals with other mobile players (instead of antagonising them by suing every four minutes), while Xbox games are proving to be tidy little earners in the Marketplace.

The latest US figures from research firm Distimo (via WMPowerUser) shows the entire top 10 paid Windows Phone apps during August were Xbox Live titles, which rake in more than the standard 30% cut for the software giant.

And as for those patents, that's the result of a new cooperative deal announced yesterday by Microsoft which will see the companies sharing their patent portfolios in a deal where Microsoft will earn royalties from Samsung's Android devices, while the companies will work together to develop and market Windows Phone. Which sounds rather like a double-win for Microsoft and for Samsung not so much.

Still, beats getting hauled into court rooms all over the planet.

Read more about: AndroidWindows Phone

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 1 comment

Treab  Sep. 29, 2011 at 13:33

Microsoft will earn royalties from Samsung's Android devices, while the companies will work together to develop and market Windows Phone. Which sounds rather like a double-win for Microsoft and for Samsung not so much.

sounds like a brilliant deal for samsung... with the way apple is going at the moment they may not be selling their android phones soon.

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