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 title has been sold more than 54 million copies. It allows players to build structures using Lego-style blocks. They can also explore large maps and battle other players.

Phil Spencer, chief Xbox executive announced the deal.

Mojang, the company's founders have assured the public that everything will be perfectly.

Some analysts have speculated that the deal is designed to attract more customers to Microsoft's Windows Phone devices.

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

Minecraft is one of the most popular games on Apple's iOS store and Android's Google Play, and has recently been released for the Xbox One and PlayStation 4 which has further increased sales.

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

Mojang the game's creator was founded in the year 2009. It made over $100 million in profit last year and employs around 40 employees.

Microsoft announced that the Mojang team would 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 an excellent game franchise. It's an open world platform, powered by a vibrant community that we are deeply involved in, and rich with new opportunities for this community and for Microsoft."

Opposition to the sale

Mojang's founder, Markus "Notch" Persson has previously criticized Microsoft and has 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 cult fan base who have reacted angrily to what they see as a corporate takeover of an independent, community-minded company.

"Makes me sick and sad," wrote one user on a renowned Minecraft forum. "It would end the gaming community," EvilBatsu added.

Some expressed concerns over the ability of fans to show their talents.

"It will not just cost more to play the game, but it could also cause people to lose their jobs." Many players play Minecraft and upload it to YouTube as a profession however, should Microsoft becomes the sole owner, there will be copyright issues."

Some players pointed out that Microsoft could allocate more resources to expanding and upgrading the game.

In a statement, Microsoft said it would keep Minecraft across all its existing platforms, with a "commitment to nurture and grow in the long run".

It was 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, saying: "Please remember that the future of Minecraft and the community you are part of are crucial to everyone involved. If you can take one thing from this post then let it be this."

In relation to Microsoft, Mojang said: "There are only few potential buyers with the resources to expand Minecraft to the size it is deserved."

The company stated that "Notch" was deciding that he did not want to be the person responsible for managing a company of the magnitude of a global company.

Developer Notch on selling Minecraft:

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

Read his entire statement

Why Minecraft?

James McQuivey of analytics firm Forrester said that "Minecraft is among the most popular gaming properties around the globe".

"Not only is it profitable, but it continues to grow in profits years after its release, mostly due to the enthusiastic community of fans who invest in the creation of their own Minecraft worlds.

"That is a reason the reasons Microsoft would like Minecraft and would like to ensure it is always available on Microsoft's gaming platforms.
rock it like a hurricane

Professor Mark Skilton from Warwick Business School said that the acquisition was about building a strong customer base for Microsoft.

"The online gaming industry is rapidly growing from a small group of gamers to mass market and Minecraft is a logical move as large businesses follow the numbers of traffic in the digital world."

In November, Amazon bought Twitch, the site that lets users to watch others play video games for $970m (PS597m).

"It's all about my sanity"

Microsoft is'set to purchase Minecraft'

Microsoft completes Nokia phone deal

25 April 2014

Microsoft

NPD Group