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



The title has been sold for more than 54 million copies. It lets players create structures using old-fashioned Lego blocks. They can also explore large maps and fight with other players.



Phil Spencer, chief Xbox executive announced the deal.



Mojang its founders promised the public that everything will be perfect.



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



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



Minecraft is among the top-selling apps on both Apple's iOS store and and Android's Google Play, and has recently been released for the Xbox One and PlayStation 4 which has further increased sales.



Despite being on sale for some time, it was still the third most played game on consoles last month according to NPD Group market research firm.



Mojang the game's creator, was founded in 2009. It earned more than $100 million in profit last year and employs more than 40 people.



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



The chief executive of the tech giant, Satya Nadella, said: "Minecraft is more than an excellent game franchise. SERVERS It's an open world platform, driven by a lively community that we cherish and brimming with exciting opportunities for this community and for Microsoft."



Opposition to the sale



Markus "Notch", Mojang's founder, has previously criticised Microsoft and stated to Reuters that there was a small market for Windows phones and it wasn't worth developing apps for.



Minecraft has a large and enthusiastic cult following Many of them have reacted angrily to what they see as the corporate takeover of an independent, communally-spirited company.



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



Others expressed concern about whether their skills would be shown by the fans.



"It will not just cost more to play the game, but it will also affect people's jobs." Many players play Minecraft and upload it to YouTube as their career however, should Microsoft becomes the sole owner, there will for sure be copyright issues."



Some players suggested that Microsoft could invest more money on the game's expansion and enhancements.



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



It said that the acquisition was expected to be completed by the end of 2014



In a statement confirming the deal on its website, Mojang reassured gamers, declaring: "Please remember that the future of Minecraft and you , the community, are crucial to everyone involved. Let this be the only thing you take away from this article.



With regard to Microsoft, Mojang said: "There are only few potential buyers with the resources to expand Minecraft on the scale it is deserved."



The firm stated that "Notch" had decided that he did not want to take on the responsibility of managing a company of such global significance.



Developer Notch on selling Minecraft:



"I've become an icon. I don't want to be an object of ridicule. I don't want to be responsible for something that I don't know about. That I don’t want to do anything about. I'm not an entrepreneur. I'm not a chief executive officer.



Read his statement in full



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 however, it continues to grow in profits years after its release, mostly because of the ardent community of fans who invest in the creation of their own Minecraft worlds.



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



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



"The online gaming industry is rapidly shifting from a niche group of enthusiasts to mass-market and Minecraft is a natural progression as large businesses follow the numbers of traffic in the digital world."



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



"It's all about my mental health"



Microsoft is'set to purchase Minecraft'



Microsoft completes Nokia phone deal



25 April 2014



Microsoft



NPD Group


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