Microsoft Pays 25bn 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 game has sold for more than 54 million copies. It lets players build structures using Lego-style blocks. They can explore large maps as well as battle other players.

The deal was announced by Xbox chief Phil Spencer.

Mojang the company, whose three founders will leave the company, assured fans that "everything is going to be OK".

Analysts believe that the deal is intended to boost Microsoft's Windows Phone users.

The acquisition comes one year after Microsoft bought the handset and devices division of Finnish mobile phone manufacturer Nokia.

Minecraft is among the top-selling apps on both the Apple iOS store as well as 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 a while however, it was still the third most played game on consoles last month according to NPD Group market research firm.

Mojang, the game's developer was founded in the year 2009. It made over $100m in the last fiscal year and has about 40 employees.

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

The tech giant's chief executive, Satya Nadella, said: "Minecraft is more than a great game franchise. It's an open world platform, powered by a vibrant community that we are deeply involved in and full of exciting opportunities for that community and for Microsoft."

Opposition to the sale

Mojang's founder, Markus "Notch" Persson, has previously criticised Microsoft and has told Reuters that the market for Windows phones was "tiny" and not worth developing apps for.

Minecraft has a huge and enthusiastic cult following who have reacted angrily to 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 well-known Minecraft forum. EvilBatsu said, "It would kill off the gaming community."

Others expressed concern about how fans will be able to demonstrate their talents.

"It will not only cost more to play the game, but it will also affect people's jobs." Many people play Minecraft and upload it to YouTube as a way to earn money, but if Microsoft becomes the sole owner, there will definitely be copyright issues."

Some players made the point that Microsoft could dedicate more resources to upgrading and expanding the game.

In a statement, Microsoft said it would continue to maintain Minecraft across all its existing platforms, and a "commitment to nurture and develop it into the future".

The company added that the acquisition was expected to be concluded by the end of 2014.

In a statement that confirmed the deal on its website, Mojang reassured gamers, saying: "Please remember that the future of Minecraft and the community you are part of are extremely important to everyone involved. If you take anything away from this post then let it be this."

With regard to Microsoft, Mojang said: "There are only few potential buyers who have the resources to expand Minecraft to the size it is deserved."

The company stated that "Notch" was deciding that he would rather not take on the responsibility of managing a business with the magnitude of a global company.

Developer Notch on selling Minecraft:

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

Read his statement in full

Why Minecraft?

James McQuivey of analytics firm Forrester has stated that "Minecraft is one of the most popular gaming properties around the globe".

"Not only is it profitable however, it continues to grow in profits years after its launch, largely due to the passionate community of fans who invest in building out their own Minecraft worlds. Spartan16

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

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

"The online gaming industry is rapidly moving from niche collective enthusiast to mass market , and Minecraft is a natural progression as large businesses follow the traffic numbers in the digital world."

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