Microsoft pays $2.5bn for Minecraft maker Mojang By Joe Miller Technology reporter, BBC News
Microsoft has bought Mojang the Swedish firm that developed the popular video game Minecraft, for $2.5bn (PS1.5bn).
The title has been sold more than 54 million copies. It lets players create structures using retro Lego-style blocks. They can explore large maps as well as fight against other players.
Phil Spencer, chief Xbox executive, announced the deal.
Mojang, the company's founders have assured the public that everything will be fine.
Analysts believe that the deal intended to boost Microsoft's Windows Phone users.
The acquisition comes a year after Microsoft purchased the handset and devices division of Finnish mobile phone manufacturer Nokia.
Minecraft is one of the most popular apps on both Apple's iOS store as well as Android's Google Play, and has recently been made available for the 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 available for sale for a few days.
Mojang, the game's developer, was founded in 2009. It made more than $100 million last year and has around 40 employees.
Microsoft announced that the Mojang team will be joining its game studio, which is responsible games such as Halo, Forza, and Fable.
The chief executive of the tech giant, Satya Nadella, said: "Minecraft is more than an excellent game franchise. It's an open world platform, powered by a vibrant community that we cherish and full of exciting opportunities for that community and for Microsoft."
Opposition to sale
Mojang's founder, Markus "Notch" Persson, has previously criticised Microsoft and told Reuters that the market for Windows phones was "tiny" and not worth the effort of developing apps for.
Minecraft has a large and enthusiastic fan base Many of them have expressed anger over what they believe is the corporate takeover of an independent company that is spirited and community-oriented.
"Makes me sick and sad," wrote one user on a popular Minecraft forum. EvilBatsu stated, "It would kill off the gaming community."
Others expressed concern about the possibility of their talents being showcased by their fans.
"It will not only cost more to play the game, but it could also cost people their jobs." Many people play Minecraft and upload it to YouTube as a profession but should Microsoft takes over there will for sure be copyright issues."
Some players have suggested that Microsoft could devote larger resources to expanding and upgrading the game.
In an announcement, Microsoft said it would continue to maintain Minecraft across all its existing platforms, and with a "commitment to nurture and expand it long into the future".
It stated that the acquisition was anticipated to be completed by the end of 2014.
In a statement confirming the deal on its website, Mojang reassured gamers, by saying: "Please remember that the future of Minecraft and you - the community - are crucial 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 who have the resources to expand Minecraft to the size it is deserved."
The firm added that "Notch" had decided that he "doesn't want the responsibility of running a company that has such global significance".
Developer Notch on selling Minecraft:
"I've become an object of. I don’t want to be a symbol. I don't want be accountable for something I don't understand. That I don’t want to do anything about. I'm not an entrepreneur. I'm not a chief executive officer.
Read the entire statement
Why Minecraft?
James McQuivey of analytics firm Forrester said that "Minecraft is among the most popular gaming properties in the world".
"Not only is it profitable, but it continues to increase in profits years after its launch, largely due to the passionate player base that invests in building out their own Minecraft worlds.
"That helps to explain the reason Microsoft would want Minecraft and would like to ensure that it's always available on Microsoft's gaming platforms.
what’s the worst that could happen
Prof. Mark Skilton, from Warwick Business School, said the acquisition was about creating a "strong customer base" for Microsoft.
"The online gaming industry is quickly shifting from a niche group of enthusiasts to mass market , and Minecraft is a sensible choice as big business follows the growth of traffic in the digital world."
In November, Amazon bought Twitch, an online platform that allows users to watch others play video games, for $970m (PS597m).
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