Microsoft switches to blockchain tech for publisher royalty calculation

Xbox publishers will now receive royalty statements faster and with less process effort from Microsoft

News of companies doing something involving blockchain and gaming is a dime a dozen of late, but with the exception of some overtures from Ubisoft, we've yet to see major names embrace the technology for gaming-related efforts. That changed today when Microsoft stepped forward to show off its new, blockchain-based process for paying publishers.

Microsoft's new program uses blockchain through Microsoft Azure to calculate royalties for publishers on the Xbox platform. Previously, the company stated that publishers wouldn't learn how much they had made from sales for around 45 days after the end of the period. The hope is that the shift to blockchain tech will speed up the process and reduce the operational power needed to accomplish it.

Microsoft is celebrating the move as a win for efficiency, security, and cost-effectiveness as well, saying that blockchain for royalty payments is a more accurate and secure method than their previous method of manual calculations. The company hopes these improvements will increase stakeholder trust and reduce time spent on audits in the future.

"Blockchain is inevitable, not a trend," said Deep Ghumman, a partner at Ernst & Young, which lent business expertise to the endeavor. "Executives need to start thinking about its implications to their organization as the underlying technology of distributed shared ledger. It is maturing at a rapid pace. Policies, governance, and regulatory guidelines are being developed so that companies that are ready to embrace this change will be successful in the long run."

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Latest comments (2)

Jeff Kleist Writer, Marketing, Licensing 3 years ago
Forgive my ignorance, but shouldn’t this be a simple spreadsheet that takes three seconds? You sold X copies at Y rate, your royalty is Z?
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Klaus Preisinger Freelance Writing 3 years ago
I bet some PR person asked a software engineer a dumb question of how such three column spreadsheet magic could be achieved and got the dumb answer they deserved. That Microsoft programmer deserves a medal for epic trolling.

Or Microsoft really thinks, why keep a simple list in one location when you can run 20 server farms spread around the globe (and under water) to generate encryption keys to allow for decentralized information storage in 100 more interconnected datacenters? In that case #facepalm.

I somehow doubt Deep Ghumman realized that the way blockchain is used, it is just a fancy word for public access open bookkeping. Like the cloud is just a fancy word for computer connected to the internet.
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