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Why I think Microsoft buying Minecraft isn't all doom and gloom

After Microsoft confirmed they are buying Mojang and Minecraft for $2.5 billion, next to no details have actually been announced for it. Following the speculations and worries of the community, Liam from gamercrowd writes about why this acquisition, isn't such a bad thing after all.

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martinezjesus19931129d ago

It isnt. Its just that with 2.5 billion dollars they could have invested on multiple studies to bring multiple new exclusives. I need more games on my xbox one!!

OpieWinston1129d ago (Edited 1129d ago )

Microsoft authorized the 2.5 Billion.

Not Microsoft Studios or Xbox.

MICROSOFT as a whole sees the potential in Mojang.

Mojang as a developer will be helping Microsofts Software sales indeed.
Future games will be exclusive to Xbox/PC.

BUT Minecraft has a ton of potential from a profits standpoint. It's the new lego.
Lego Movie made over $460 Million worldwide with a budget of $60 Million at a time where Lego isn't very popular. Lego used to be like crack for kids, but now Minecraft is.

Imagine the Minecraft movies....TV shows.
Profits from Servers(Azure Servers)
Product Lines(Minecraft Lego is launching this November)

Minecraft is crack for kids.

You do realize Microsoft Studios invested over $1 Billion in it's first tier of games, and will continue to invest big money into it. They've got over $84 Billion in offshore cash.
Microsoft has opened up 6 studios.
They've bolstered the Black Tusk workforce to 150 employees
They're constantly hiring for Lionhead/BlackTusk/343i(Look at job postings).

They're going to continue to invest in multiple studios while also utilizing their Rare IPs like they're doing with Phantom Dust(Not a Rare IP) and Killer Instinct.

GAMES are coming to X1. Got to be a bit patient and be thankful for what's on the horizon.

ThatOneGuyThere1129d ago

"Microsoft authorized the 2.5 Billion. Not Microsoft Studios or Xbox. "
...
"You do realize Microsoft Studios invested over $1 Billion in it's first tier of games, and will continue to invest big money into it. They've got over $84 Billion in offshore cash. "

Your nonsense has confused yourself. XBox/MS Studios does not have 84B in cash, Microsoft does. How can you have 84B in cash for something that has a net loss? Microsoft owns the XBox brand. The money doesnt come from XBox, it comes from MS. Stop pretending they're not the same. XBox could not stand on its own legs. MS is quickly running out of reasons to support the XBox brand in its current state.

If I had to guess, I would guess this acquisition is the beginning to the long and slow death of the XBox brand as it exists today. Microsoft leadership is going to prove to the board that they don't need the XBox brand to become highly successful in the gaming world. They're going to do it for far cheaper than XBox has cost them, and be far more profitable. After all, the entire mission of the original XBox project was to win the living room before Apple did. However, its not about the living room anymore. It's about mobile.

dcbronco1129d ago

I actually disagreed with the purchase initially. But if the stories of fan based mods selling for serious cash and 100 million PC users are true, then this will make Microsoft money. I'm not sure about about their by fiscal years end talk, but I also had no idea so much was spent on this game outside of Mojang's revenue. It also makes even more sense that they sold it. A small developer would have a terrible time trying to police the modding. Microsoft could quickly bring that under one roof.

Godmars2901129d ago

If anything, Xbox fans should be concerned that MS proper has just invested a massive sum in a project which is separate from the Xbox brand. What's going to happen to a division which has been a money sink if a new and similar project sees an immediate return.

MrPink20131129d ago (Edited 1129d ago )

Godmars, Xbox fans should be worried?

Basically what that means is your not an Xbox fan because your directing your comments forward. Which to me means you have no interest in this deal being positive. So let me ask you, should Nintendo fans be worried about the Wii U lack of sales and lack of software? Should Sony fans be worried Sony just announced they forecast yet another 2 billion in losses? A company that might not even exist in a few years or might be reduced to a services only company?

This doom and gloom attitude is getting old. Xbox fans are getting the royal treatment for the biggest game right now. Xbox fans are also getting Forza Horizon 2 which looks excellent, as well as Sunset Overdrive and Halo collection. All coming this year. Along with all the other third party popular games. So now what, are you going to become an Xbox fan now or just keep making pessimistic comments towards them?

BitbyDeath1129d ago (Edited 1129d ago )

@MrPink (cool name btw), both Ninty and Sony have a ton of money to keep em going.

Both Sony and Ninty want to hang onto their gaming divisions and the loss you speak of for Sony is from a separate division (phones).

Xbox is a division that loses more money than it makes and is starting to be treated like a red headed step child by its parent (Microsoft).

This is where GodMars was pointing too.

Deflect all you want but you know it is true.

dcbronco1129d ago

People that still believe Xbox loses money should do a little research into how consoles make money and then edit your comments. As for the Sony and Nintendo having plenty of cash to keep them going comment......hahaha. That is truly funny. I should upbubble you for that one. Just because the loses are coming from other divisions it doesn't mean it doesn't effect PlayStation. PlayStation profit does go to the company as a whole and vice versa. A half billion loss for a company that has bled cash for over five years and was projecting a profit is not good.

This could cause Kaz his job. There have been calls to replace him in the past and this could make it happen. This could also cause the Japanese government to go through with their threat to delist Sony. That is when the real trouble starts.

MrPink20131129d ago (Edited 1129d ago )

BitbyDeath, how is the Xbox brand bring treated like a red headed stepchild by Microsoft? If anything having Phil Spencer at the helm shows Microsofts willingness to hear feedback. Acquiring Tomb Raider in a timed exclusive deal where these things costs lots of money now also shows they are Willing to spend money on areas Nintendo and Sony don't seem to want as much. There are no signs of the Xbox One desecrating so where are the signs of this exactly?

What happens after the Xbox One is anyone's guess. Nintendo isn't making money in the Wii U and gaming is all they have to fall back on. Furthermore gaming isn't making Sony much money. Most of their earnings come from movies and insurance. The thing is Microsoft can afford to keep pumping money into Xbox if Nintendo doesn't make money in games they will cease to exist. Either having to become a third party software company or be forced to focus on handheld. Sony has bigger issues, the company once known for TV and electronics is becoming irrelevant. They also have the burden of being Japanese where honor and keeping jobs come into question. Firing people and trimming everything that isn't making money is going to be very difficult for Sony who still want to be known as a major company even if it means more losses. Console sales in Japan are also in decline and the lowering value of the yen certainly isn't helping. Kaz will be gone just like the many other CEO before him as if late and the guy running Nintendo should be fired.

We hear this every generation how Microsoft can't keep the Xbox yet they are still here. They still get far more software support than Nintendo too who you say is all about gamers, lol. Microsoft got EA Access, they have monthly hardware updates. What have Nintendo and Sony been doing this last year that makes you think they are doing more for the owners of their consoles besides delays?

After the PS4 Sony could turn into a service provider. PSNow shows the irrelevance of hardware much more than Microsoft buying minecraft.

Halo2ODST21129d ago

No one cares about 343, they should be getting Fired

+ Show (5) more repliesLast reply 1129d ago
MrPink20131129d ago

Where exactly are you getting that notion it's one or the other? They are still making games with parties like Remedy and Insomniac. What exactly is Nintendo doing? That's why I laugh at how much flack Microsoft gets no matter what they do but yet we don't see nearly as much controversy over what Nintendo is doing.

It's like Sony is doing everything right, Microsoft is doing everything wrong while we ignore Nintendo and what's going on with the PC. Microsoft just added another studio along with what is perhaps the biggest ip right now, bigger than Halo, but the responses are they should have instead...

So when exactly did this site turn into Sony versus Xbox?

Mystogan1129d ago

I don't think Minecraft is a Microsoft Studios acquisition. I think it will be treated separately from other Microsoft Studios.

itisallaboutps1129d ago (Edited 1129d ago )

2.5 billion dollars. Let that sink in.

They will have to make that back plus extra revenue. But they also know they can't piss on the consumer. I am interested to see what they do with it

But again investors had to agree with the purchase and that is what throws me off a lot

user3672721129d ago (Edited 1129d ago )

MS can buy a cure for Cancer and give them out to help the sick and somehow people still will find negative with it.

Apple bought beats for over 2 billions and Amazon bought Twitch for god know how much but no one seems to think that is bad until MS does it. A franchise that sold over 50 millions on PC and is constantly at the top of Live activity and sold over 13 millions just on x360 since its launch is a huge IP and MS will make it even bigger. Ms has over 90 billiln in cash reserved so how is this doom and gloom for them? It is not like they barrowed money or selling other assets like buildings in order to buy it.

DigitalRaptor1129d ago (Edited 1129d ago )

It can't be completely Xbox-related, it's got to have something to do with their entire ecosystem. Even still, it's a massive gamble, since Minecraft has made most of its money already and last year Mojang made $129 million off the IP. With that trajectory, it would take them 2 decades to make back the investment.

So in reality, Microsoft has spent $2.5 billion on an IP that has already more or less peaked. Minecraft was a "right place, right time" kind of creation, and the studio won't bring out another hit like it again. So in reality, the people on here who have been hating on Sony's "indie" direction and focus should let it sink in that Microsoft has spent $2.5 billion on an indie developer with an uncertain future.

That's more of an investment than they've put towards AAA exclusives on Xbone. Just keen to put things in perspective based on all that we've heard over the past few months.

ziggurcat1129d ago

it's not really doom, and gloom... but i think it shows a lack of confidence in their own studios if they'd rather spend 3+ billion on keeping titanfall exclusive, paying for times exclusivity for tomb raider, and buying minecraft/mojang.

that money would be better spent investing in more new IPs, really...

DevilOgreFish1129d ago

they should have invested it into project spark, it's newer. with more money they could make more themes out of the tool, cell shaded, realistic, and rustic. it's got way more potential.

annus1129d ago

And that's why you don't run a multi-billion dollar business.

Minecraft is so well established. Look at its sales, its platforms, its merchandise, its a brand name that so many people know, it even has a conference. You can't name a single new IP that even comes close to Minecraft in ANY of those terms.

MS could make some new features and slap a 2 at the end of the name and sell millions of copies in an instant across most of the platforms.

ziggurcat1129d ago

no, you build your brand (in this case, xbox) by taking risks, and investing in new ideas, not resting on the laurels of an existing franchise that requires no thought/effort or innovation to the industry.

annus1129d ago

'Building your brand' doesn't exactly come into play when you are a multi-billion dollar company that is one of the largest, most well-known companies in the world. It's about making money now, not about being known.

This also isn't some impulsive buy, if you don't think MS had some of the worlds best people looking over this deal you are a fool. There is clearly money to be made.

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