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Microsoft Pays $2.5bn For Minecraft Maker Mojang

Microsoft pays $2.5bn for Minecraft maker Mojang By Joe Miller Technology reporter, BBC News


Microsoft has bought Mojang, the Swedish firm behind the popular video game Minecraft, for $2.5bn (PS1.5bn).


The title has sold over 54,000,000 copies. Players can build structures using retro Lego-style bricks, explore large maps, and battle other players.


The deal was announced by Xbox chief Phil Spencer.


Mojang's three founders will depart the company. However, Mojang assured fans that "everything would be OK".


Analysts believe the deal is intended to attract more users to Microsoft Windows Phone devices.
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The acquisition comes a year after Microsoft bought the handset and devices division of Finnish mobile phone firm Nokia.


Minecraft is a top-selling application on both Apple's iOS store as well as Android's Google Play. The app was recently released for the Xbox One/Playstation 4, further increasing sales.


Despite it being available for quite some time, it was the third most downloaded console game in last month's market research by NPD Group.


Mojang, the game's developer, was founded in 2009. It made over $100m last year and has approximately 40 employees.


Microsoft stated that the Mojang staff would join its game studio. This studio is responsible for titles like Halo and Forza.


Satya Nadella was the chief executive of the tech company. She said that Minecraft is more than a great gaming franchise. "Minecraft, driven by a vibrant, caring community, and rich in new opportunities for that community as well as for Microsoft, is an open world platform.


Opposition to sale


Mojang's founder, Markus "Notch" Persson, has previously criticised Microsoft, and commented to Reuters that the market for Windows phones was "tiny" and not worth developing apps for.


Minecraft has a large following of enthusiastic fans, many of whom have reacted angrily and criticized what they perceive to be a corporate takeover a socially-spirited independent corporation.


"Makes me sick, sad," one user wrote on a popular Minecraft forums. EvilBatsu stated that it would "kill the gaming community."


Others expressed concerns about whether fans would be able to exhibit their skills.


"Not only will it cost more money to play the game it will cost people their jobs too. Many people upload Minecraft to YouTube as a career. But if Microsoft is in control, there will be copyright issues.


Some gamers suggested that Microsoft could spend more resources on the game's expansion and upgrades.


Microsoft stated that it would continue to support Minecraft on all its platforms and with a "commitment of nurturing and growing it long into the future".


It added that the acquisition was expected to be concluded by the end of 2014.


Mojang confirmed the deal by posting a statement on its website. It said that gamers were safe and reminded them that Minecraft's future and the community are very important to all involved. Let this be the one thing you take away from this post.


Mojang spoke out about Microsoft and said that "there are only a few potential buyers with the resources necessary to grow Minecraft on the scale it deserves."


The firm stated that "Notch" had decided he didn't want to take on the responsibility of running a company with such global significance.


Developer Notch sells Minecraft


"I've become the symbol. I don’t like being a symbol. I'm not an entrepreneur. I'm not an entrepreneur.


Read his statement in full


Why Minecraft?


James McQuivey, from analytics firm Forrester said that "Minecraft has been called one of most important gaming properties in history."


"Not only is it profitable, but it continues to increase in profits years after its release, largely due to the passionate fan base that invests in building out their own Minecraft worlds.


"That helps explain why Microsoft would want Minecraft and would want to ensure it is always available on Microsoft's gaming platforms.


Professor Mark Skilton, Warwick Business School, stated that the acquisition was made to build a "strong customer base."


"The online gaming industry is moving quickly from niche collective enthusiast into mass market and Minecraft seems like a logical move, as big business follows the traffic figures in the digital world."


Amazon purchased Twitch last month for $970m (PS597m).


"It's about me sanity."


Microsoft is "set to buy Minecraft"


Microsoft completes Nokia phone deal


25 April 2014.
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Microsoft


NPD Group

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