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 acquired Mojang, the Swedish firm that developed the popular video game Minecraft for $2.5bn (PS1.5bn).

The game has sold for more than 54 million copies. It allows players to create structures using old-fashioned Lego blocks. They can also explore large maps and battle other players.

The deal was announced by Xbox chief Phil Spencer.

Mojang the company's founders have assured the public that everything was going to be perfect.

Analysts believe that the deal meant to increase Microsoft's Windows Phone users.

This acquisition comes just one year after Microsoft bought the Finnish mobile phone company Nokia's handset and devices division.

Minecraft is among the most popular apps on both Apple's iOS store and Android's Google Play, and has recently been released for Xbox One and PlayStation 4 and has boosted sales even more.

This month it was the third most played console game according to market research firm NPD Group, despite being in the market for a short time.

The game's creator, Mojang, which was founded in 2009, has made over $100m in profit in the last fiscal year, and employs around 40 people.

Microsoft announced that the Mojang team will join its game studio, which is responsible titles like Halo, Forza, and Fable.

The chief executive of the tech giant, Satya Nadella, said: "Minecraft is more than a great game franchise. It is an open world platform, driven by a lively community that we cherish and full of exciting opportunities for the community as well as for Microsoft."

Opposition to the 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 and enthusiastic cult following who have expressed anger over what they believe is an attempt to take over an independent, community-minded company.

"Makes me sick, and sad," wrote one user on a popular Minecraft forum. EvilBatsu stated, "It would kill off the gaming community."

Others expressed concerns about the possibility of their talents being shown by the fans.

"Not only will it cost more to play the game, it will affect people's jobs as well. Many people play Minecraft and upload it to YouTube as their career however, if Microsoft is the new owner, there will for sure be copyright issues."

Some players have suggested that Microsoft could dedicate more resources to upgrading and expanding the game.

In an announcement, Microsoft said it would keep Minecraft across all its current platforms, and a "commitment to nurture and develop it long into the future".

It was stated that the acquisition was anticipated to be completed by the end of 2014

In a statement that confirmed the deal on its website, Mojang reassured gamers, declaring: "Please remember that the future of Minecraft and you - the community - are vital to everyone involved. Let this be the main thing you learn from this article.

With regard to Microsoft, Mojang said: "There are only a handful of potential buyers with the resources to develop Minecraft to the size it deserves."

The company said that "Notch" had decided that he didn't want to assume the responsibility of running a business with such global significance.

Developer Notch on selling Minecraft:

"I've become a symbol. I do not want to be a significator, with a responsibility for something massive that I don't understand and do not want to tackle and that is always coming back to me. I'm not an entrepreneur. I'm not a chief executive officer.

You can read his entire statement here

Why Minecraft?

James McQuivey of analytics firm Forrester, noted that "Minecraft is among the most popular gaming properties in the world".

"Not only is it profitable, but it continues to increase in revenue years after its launch, largely due to the enthusiastic player base that invests in the creation of their own Minecraft worlds.

"That helps to explain the reasons Microsoft would want Minecraft and would like to ensure that it's accessible on Microsoft's gaming platforms.

Professor Mark Skilton from Warwick Business School said that the acquisition was about building a robust customer base for Microsoft.
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"The online gaming industry is quickly moving from niche collective enthusiast to mass-market and Minecraft is a sensible choice since big business is following the growth of traffic in the digital world."

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25 April 2014

Microsoft

NPD Group