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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 acquired Mojang the Swedish company behind the wildly popular video game Minecraft for $2.5bn (PS1.5bn).



The title has been sold to 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.



Phil Spencer, chief Xbox executive announced the deal.



Mojang the company's founders promised fans that everything will be fine.



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 handsets and devices division.



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



In the month of March, it was the third most-loved console game according to market research firm NPD Group, despite being available for sale for a few days.



The game's creator, Mojang, which was founded in 2009, made more than $100 million in profits last year, and employs approximately 40 employees.



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



The tech giant's chief executive, Satya Nadella, said: "Minecraft is more than a great game franchise. It is an open-world platform driven by a vibrant community we care deeply about, and rich with new opportunities for the community as well as for Microsoft."



Opposition to the sale



Markus "Notch", Mojang's founder has previously criticized Microsoft and told Reuters that there was a tiny market for Windows phones and it wasn't worth creating apps for.



Minecraft has a large and enthusiastic cult fan base, many of whom have reacted angrily to what they perceive as a 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 concerns about the possibility of their talents being showcased by their fans.



"Not only will it cost more to play the game, it will cost people their jobs as well. Many players play Minecraft and upload it to YouTube as their career however, if Microsoft becomes the sole owner, there will definitely 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 maintain Minecraft across all its existing platforms, and a "commitment to nurture and grow it 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, by saying: "Please remember that the future of Minecraft and the community you are part of are vital to everyone involved. If you take one thing away from this post please let it be that."
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With regard to Microsoft, Mojang said: "There are only few potential buyers who have the resources to grow Minecraft on a scale that it is deserved."



The company stated that "Notch" had decided that he would rather not take on the responsibility of running a company with the magnitude of a global company.



Developer Notch on selling Minecraft:



"I've become a symbol. I do not want to be a significator, responsible for something huge that I don't understand and do not want to tackle and that keeps coming back to me. I'm not an entrepreneur. I'm not a CEO."



Read his 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 terms of profits even after its release, mostly because of the ardent fan base that invests in creating their own Minecraft worlds.



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



Prof Mark Skilton, from Warwick Business School Prof Mark Skilton, from Warwick Business School, said the acquisition was about creating the "strong customer base" for Microsoft.



"The online gaming industry is quickly moving from niche collective enthusiast to mass-market and Minecraft is a logical move since big business is following the traffic numbers in the digital world."



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25 April 2014



Microsoft



NPD Group


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