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Microsoft Deal For ‘Minecraft’ Now Reportedly $2.5 Billion, What Is Microsoft’s Angle?

INQ: How big is Mojang’s Minecraft? It’s on the PC, PlayStation, Xbox, iPhone, iPad, and Android devices for starters. It’s sold over 54 million copies total. A report last week indicated that Microsoft wanted to purchase the developer studio and the game for $2 billion. A new report Saturday claims the purchase amount is actually $500,000 higher. Many are wondering why Microsoft would spend that amount of money for a single game franchise.

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christocolus1071d ago (Edited 1071d ago )

There is definitly a lot more to this buyout. This isn't just about xbox it also has something to do with MS pc and mobile plans. Mojang may also have some other ambitious stuff planned and might even be expanding the studio.

Whatever it is i wish both parties the best of luck.

-Alpha1071d ago (Edited 1071d ago )

Right on.

Minecraft is huge, and it is absolutely a lot bigger than Mario at this moment, especially for the younger audience. Xbox as a brand can seriously benefit from capturing the younger audience with Xbox exclusivity, but the deal is bigger than just Xbox

People are underestimating how big Minecraft is, and as a 23 year old, it's not something people our age are aware of. I work with kids, and I can see just how big Minecraft is. It's creating a generation of positive kids who are playing a positive video game that has positive benefits. Parents love this.

Considering that Minecraft is massive on PC, Xbox, tablets, and phones, these territories are huge for MS. Xbox is just a fraction of this buyout, but Xbox can benefit nicely.

It's also rather incredible that Minecraft has been loved by educators, and that schools are purchasing Minecraft for curriculum related ends. The game has become a cultural phenomenon

And it's not surprising either: there is an incredible amount of wonder, creativity, and problem solving that comes out of placing blocks around, and I really think that Minecraft is big for the target audience. There are millions of kids who are going to grow up and be introduced to gaming by Minecraft first, and I can't say that it's a bad strategy for MS to buy out the studio/IP.

Hellsvacancy1071d ago (Edited 1071d ago )

Nicely said = well said

My daughter LOVES Minecraft (she's 6) you should see the crazy imaginative worlds she's built, it really makes me smile when she takes guides me through her world

If Minecraft 2 was an XB1 exclusive I would possibly be forced to buy one, i would never hear the end of it

Clown_Syndr0me1071d ago

I dont get how kids play this.
Im 23 also, and I find it so hard. Takes me hours to make anything, and I dont have the stamina lol!
Plus it gets quite complex..

UltimateMaster1071d ago (Edited 1071d ago )

What's Microsoft take on it?
Trying to be relevant.
Xbox One aren't selling as well as the PS4, so why not make a move on one of the most popular game.
That's the only reason I could think of.
The other would just be for the money.
Cutting Minecraft out of every other system would surely diminish future sales of the studio.

mrpsychoticstalker1071d ago

Well said. It's incredibly that still ignorant people disagrees with you. It's pathetic. This game is everywhere.

troylazlow1071d ago

This is great news! *Grabs popcorn*

Pogmathoin1071d ago

My 7 year old has thought more about this game than any other source..... Builds much quicker than me too.... Its like the kids today are born with this in their genes......

Gorilla_Killa_X1071d ago

The acquisition is not about the XBox brand but a way to try and help boost their mobile market share. Right now Minecraft is not available on Windows phones. But Microsoft will put it there and hopes that it will help sell more Windows phones. BTW, an estimated 40% of all minecraft game copies have been purchased on mobile phones.

GrandTheftZamboni1071d ago

Microsoft is trying to penetrate the market that doesn't care about graphics.

:)

maniacmayhem1071d ago

Exactly,

I have a son and him and his friends all play Minecraft. I go to his school and I see kids wearing Mincraft shirts. This game has become a phenomenon.

I also agree with christocolus, I think Mojang may have something in the works that MS needs to have whether it be Minecraft 2 or something bigger.

Kidmyst1071d ago

I play Minecraft on the PS4 with my 3 year old mostly(in peaceful mode) and he loves it. He does like the creepers though! Fun game and it's like Lego's but in a big world, although I play on survival mode manily for the Trophies. Once I get them all then I'll switch to creative mode to build my Myst style worlds.

miyamoto1071d ago

...and M$ is going to destroy another "RareWare".

Soc51071d ago

You don'think a lot of gamers will be turned off by the buyout? And slowly abandon it. Since part of the appeal of minecraft is that it's an indie type game that wasn't pushed out by the triple A studios.

gameDevWannaBe1071d ago

2.5 for a one hit wonder studio?

Gamer19821070d ago

This cant be about selling Xboxes though as, as big as Minecraft is it's still not selling the kind of numbers that would propel Xbox not to mention make MS money back on this investment. Mojang make about 150 million a year thats with the game and the memorabilia. That minecraft hype will die down each year and that profit will lower. It's why developers always release new sequels. You can't really do much with minecraft. Better graphics just won't do.
Making it exclusive to Xbox would just make sure MS loses most of its 2 billion investment which is crazy even for MS. Shareholders would simply not allow it.

wsoutlaw871070d ago

this game has already sold to everyone that wants it. Games that get that huge do it because everyone wants to check out what everyones talking about. People play it then move on. ms would be crazy to think that mincraft will continue to sell or that minecraft 2 would make back the well over 2.5 billion $ it would take to justify this purchase. They would be stupid to not release it on ios and android, but even if they did make it exclusive to ms devices, everyone would just play on pc.

+ Show (12) more repliesLast reply 1070d ago
BattleAxe1071d ago

I think it's also to get kids familiarized with Microsoft products at an early age. There are a huge amount of kids playing Minecraft, just like many of us used to play Super Mario Bros back in the 80's, this is their Super Mario Bros.

The_KELRaTH1071d ago

It's interesting you mention mention Mario in the 80's as there were many game adventure creator games on the Atari 800 etc that were just like Minecraft but back then the blocks were due to hardware limitations :)

ThanatosDMC1071d ago

Lol. Topic creator cant count. $2.5 billion is $2B plus $500M not $500K. If it's only $500K more then it would be $2.0005B.

1070d ago
mhunterjr1071d ago

You're right. This definitely isn't just about xbox. They could have 2.5 billion is enough money to launch several studios, or would have been enough to launch te xb1 at a loss to improve the value proposition. This money definately comimg with something else in mind.

assdan1071d ago

No game mojang makes will ever be as big as minecraft.

mixelon1070d ago

Crazy to think, but no game anyone makes could ever be as big as minecraft.

It's a pretty strange phenomena. :D

+ Show (2) more repliesLast reply 1070d ago
getrektedmate1071d ago

Why not invest that 2.5 billion on your first party studios?

The_Infected1071d ago (Edited 1071d ago )

Why not invest 2.5 billion in Xbox One from the start? Could you imaging how much better the hardware would've been.

That or like you said spend the money on 1st party studios. Maybe they will still invest heavily in 1st party studios eventually. Who knows.

equal_youth1071d ago

exactly what i was thinking. this is ms playing it safe and making us their b*tch again. i just don't know but this is clearly not a creative approach to make your customers happy. just pay for something they clearly want and make them buy it from you. kind of reminds me of some drug lords oO

donthate1071d ago

Because MS as a whole doesn't just revolve around Xbox platform. This purchase is far beyond Xbox as pointed out in the article, and in the comments above.

The issue with the hardware isn't more money poured into the hardware, but MS requirements of 8GB RAM from the start and hitting a price point. Could you imagine what would happen if Sony's gamble of GDDR5 being more expensive and the PS4 would only have 4 GBs?

The Minecraft purchase would be an investment into a new business and promote several other businesses, not to invest into the Xbox business alone.

Geekman1071d ago

You can't possibly think spending billions of dollars on a console with an 8 year lifespan is a smart idea....

miyamoto1071d ago (Edited 1071d ago )

Do I smell desperation in Redmond, Seattle?
Do I smell desperation at M$ camp?
Do I smell panic in the streets of London?
Do I smell panic in the streets of Burmingham?
I wonder to my self?

Isn't $2.5 billion such a hugely expensive price for a bandage strip to patch up the ailing Xbone?

shorty74a1070d ago

Microsoft is trying to purchase Mahong. Not the Xbox division. Everything I have read on this states this purchase is more about windows phone than anything else. Who cares what Microsoft wants to spend their money on (or waste their money on).

+ Show (2) more repliesLast reply 1070d ago
user3672721071d ago (Edited 1071d ago )

You guys know minecraft is not only on console right? It is more significant on the mobile front and this is part of MS plan is to corporate the game for XB1, PC, and mobile users for crossplay and potentially can be a killer app for MS devices including surfaces and of course the xb1. It will be more than just another in-house first party game for one console.

DarkOcelet1071d ago

I cant believe the disagrees you got , i guess people dont want AAA exclusive games aside from minecraft :/

christocolus1071d ago

He is getting disagrees cos he has his facts all wrong. Read my reply to him.

FITgamer1071d ago

...because Microsoft caters to the casual market first.