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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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christocolus1134d ago (Edited 1134d 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.

-Alpha1134d ago (Edited 1134d 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.

Hellsvacancy1133d ago (Edited 1133d 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_Syndr0me1133d 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..

UltimateMaster1133d ago (Edited 1133d 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.

mrpsychoticstalker1133d ago

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

troylazlow1133d ago

This is great news! *Grabs popcorn*

Pogmathoin1133d 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_X1133d 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.

GrandTheftZamboni1133d ago

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

:)

maniacmayhem1133d 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.

Kidmyst1133d 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.

miyamoto1133d ago

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

Soc51133d 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.

gameDevWannaBe1133d ago

2.5 for a one hit wonder studio?

Gamer19821133d 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.

wsoutlaw871133d 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 1133d ago
BattleAxe1133d 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_KELRaTH1133d 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 :)

ThanatosDMC1133d 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.

1133d ago
mhunterjr1133d 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.

assdan1133d ago

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

mixelon1133d ago

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

It's a pretty strange phenomena. :D

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getrektedmate1134d ago

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

The_Infected1134d ago (Edited 1134d 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_youth1133d 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

donthate1133d 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.

Geekman1133d ago

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

miyamoto1133d ago (Edited 1133d 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?

shorty74a1132d 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 1132d ago
user3672721133d ago (Edited 1133d 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.

DarkOcelet1133d ago

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

christocolus1133d ago

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

FITgamer1133d ago

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

christocolus1133d ago

Pls.. 6 new inhouse studios were announced just last month. MS still has 2nd party exclusives and will continue to invest in their 1st party but nothing is stopping then from investing into 3rd party and making aquisitions like this. Deals like these will keep expanding their 1st party studios in the end so how is it a bad thing again?

www.thesixthaxis.com/2014/08/ 21/new-microsoft-first-party-st udios-outed/

DarkOcelet1133d ago

Come on Chris do you really think minecraft worth 2.5 billion , with that money we could have 25 AAA new ips or sequels that actually were amazing ( Alan Wake or more 360 exclusives ) , or did you forget the last 3 years of the 360 , it had nothing new . I mean kinect only exclusives which nobody asked for . There is a reason people went to the PS4 this gen because last gen Microsoft really dropped the ball with zero support to new ips , more exclusives . They just went with the thing that brought only money to them . They never cared for us and i am afraid this cycle will continue this gen too .

bleedsoe9mm1133d ago

people act like they spend this 2.5 billion means its not being spent somewhere else , 2.5 billion is a trivial number to ms , if they think they need to spend on new or buy exisisting ip's or buy new studio or create them ms has the resources to do it and without it having much of a effect to their bottom line .

ShowGun9011133d ago

@bleedsoe9mm

money spent in one place is ALWAYS money not spent elsewhere... why do you think, during the last couple years of the 360, we got ONLY kinect shovelware, and no big AAA exclusives? because M$ has infinite money? Also, to investors, 2.5 BILLION is quite a bit of money, which they'd better see again lol! its only a small amount looking through the lenses of a GARAUNTEED RETURN. then its an investment...

if people with your degree of business savy ran M$, they'd be outta business by the end of the year...

bleedsoe9mm1133d ago (Edited 1133d ago )

@ShowGun901 i like how people are second guessing ms business decisions . mojang and the minecraft ip isn't being picked out of thin air neither is the number they are willing to pay nor is the fact that its international company that gives them an advantage when it comes to tax liability . mojang and to a greater degree minecraft has the ability to effect everything ms does not just for the xbox brand . if you think this acquisition effects what they spend on software for xbox you are completely naive to the way these deals come together . if In the final year of xbox they decided the need to spend money on ip to drive sales it would have been spent , but they didn't need too simple as that .

wsoutlaw871133d ago (Edited 1133d ago )

it doesnt matter what studios they opened 2.5 billion is a crazy amount for minecraft and could have been used in other ways. How in hell do they expect to make billions back on minecraft and how long will that take.
@bleed If you think ms has unlimited money you are just being ridiculous. MS has shareholders and everything they do, especially for 2.5b $ needs to be profitable. If they could spend whatever they wanted the xbox one would have some games right now and would have been cheaper with better hardware. The game has sold a ton, but a lot of the sales were at a cheap price, and they sold multiple copies to the same people.

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All_Consoles1133d ago (Edited 1133d ago )

Is mojang not a first party studio if they are bought?

What about the 7 other studios formed by microsoft in the past year alone

DarkOcelet1133d ago

But my question isnt 2 billion just too much for just one game ?

DOMination-1133d ago

Who cares. Its not your money?

mhunterjr1133d ago (Edited 1133d ago )

This obviously isn't about just about xbox, that's why. If they had 2.5 billion lying around for xbox, surely they WOULD have invested more into the hardware first party.

At the reveal, they said they invested 1billion dollars for the first 12months of xbox 1 software. Now they are throwing 2.5 billion at a single company. Something else is going on here, and it isn't about xbox.

maniacmayhem1133d ago

How do you know that MS hasn't already spent that amount on their first party studios? MS already announced 5 new 1st party studios.

And didn't MS announce they spent over a billion on game development during their reveal? Didn't they announce they invested in an insane amount of servers, not to mention this cloud, DX12, and they are constantly focusing on Xbox One updates. All that means money invested in their gaming division.

This deal with Mojang is just part of MS investing in their 1st party studios especially if they buy Mojang and make them a 1st party studio.

Fanci1133d ago

@The_Infected
Invest 2.5 billion in the hardware to make it top of the line so the Xbox One costs thousands of dollars? Or so they can sell if for $500 and loose tons of money on each console? Makes no sense.

+ Show (6) more repliesLast reply 1132d ago
MajorGecko1133d ago

this is why i didnt buy an Xbox One imagine how many AAA new IP's they could have made with 2.5 billion..but its going to MINECRAFT proud to have switched from 360 to ps4 :)

equal_youth1133d ago

this thought can make one really sad :( all this games that could have been...

Sitdown1133d ago (Edited 1133d ago )

Pretty sure this was not the reason why.....especially since Microsoft has brought on some pretty good developers, purchased Gears, and helped 3rd parties fund titles. Then add in that there is nothing that said Microsoft can't fund new ips in addition to this purchase. And what about this.... This purchase could partly be about funding new ips. Or this purchase brings in new money for new ips.

SkippyPaccino1133d ago

I know...a typical high quality AAA game cost between 50 to 150 millions to make. That means Microsoft could use that money and make 25 AAA exclusive (100 millions each) and Mojang will keep making Xbox ports for free.

This is more a move to keep it away from Android, IOS and PlayStation. (even if they said they wouldn't, we all know minecraft 2 will be 100% exclusive)

SuperBlur1133d ago

Do we know for sure it is MS that is in talk to buy them?

Like that "Google trying to buy Twitch" when all this time it was Amazon

..

Mega241133d ago

Actually, all this time was indeed google who was looking to buy Twitch, at the last second, they backed out and Amazon went in for the kill.

badz1491133d ago

Actually Google was "restricted" from buying Twitch because they already own Youtube and so as not to create a monopoly. Amazon just swooped in after that without having to fight Google.

OpieWinston1133d ago

Minecraft is the new lego.

It's a no brainer deal.

They need to get rid of some of their offshore cash.
They've got a studio selling themselves to become even bigger.
How do you sell phones and tablets? Exclusive features/Games/Comfort/Etc...
Surface is now selling well, they need to keep that momentum going with games like Minecraft from Mojang.

Look at the success of the Lego Movie...Minecraft movies could make some serious money.

For Xbox specifically...3 major things sold the 360.
Halo(Multi Billion dollar franchise)
Gears of War(Billion dollar franchise)
Minecraft (Sold 13 million units on 360)

gootimes1133d ago (Edited 1133d ago )

I don't know, my nephews have already moved on to Terraria... I don't hear as much talk about it from people like I used to. In it's prime people used to be obsessed with it though for sure. I think money could be better spent trying to create the NEW big game through already owned studios, rather than buy ip's to games that used to be the hot thing...

Mega241133d ago

I've never seen a Surface in the wild, seen many Ipads, and full on laptops from dell and hp that try to be tablets, but never a Surface.

Microsoft isn't that good with hardware, they should stick with software.

OpieWinston1133d ago

What kind of rock do you live under?

I had 3 guys alone in my class who owned Surfaces.

Most people I know find Ipads to be overpriced peaces of trash.

Then again I don't live under a rock.

TongkatAli1133d ago

I live in New York, almost every day I see Ipads on the train, never seen a surface.

nix1133d ago

Opie, you need to be more attentive in class. It's "pieces" not "peaces".

Kids, these days. I tell you.

f50liv_imposter11133d ago

OpieWinston, what the hell you on. I think everyone knows that Ipads are much more popular and Surfaces are hardly even known. I have never seen someone with a surface and i know plenty who own an ipad including me

koolaid2511133d ago

Sony isn't good with software they should stick to hardware.

Mega241133d ago (Edited 1133d ago )

@Opie

I live in a house, to my knowledge its not a rock. Maybe you come from a place of hipsters or something, Ipads can be seen everywhere, they are so popular, my professors used them at my university.

@Koolaid

If you mean software like Sony Vega, then you are very wrong, its one of the best editing software I've used. But if you mean as for their phones, than yeah.

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