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Minecraft is already making lots of money for Microsoft

No one would argue that Microsoft's $2.5 billion Mojang acquisition was a bad business decision, but the results so far are staggering. According to the company's second quarter fiscal report, ending December 2014, first-party video game revenues were up 79 per cent–mostly thanks to Minecraft.
That's a $171 million increase, attributed in part to a six-year-old phenomenon. While Xbox exclusive titles Halo: The Master Chief Collection and Forza Horizon 2 also played a role, there's no question that Minecraft is already making Microsoft big money.

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MultiConsoleGamer994d ago

Author doesn't even mention the lucrative merchandising, which is selling like hot cakes. Good read for anyone who questioned the purchase of this franchise.

4Sh0w994d ago (Edited 994d ago )

Well from what Ive read its expected to make 73million off PC/Mac alone for the fiscal year. That doesnt count xbox 360, X1, ps3, ps4, iOS and android platforms. I believe its also coming to vita. Then theres licensing and merchandising profits. Last year prior to micros purchase the Mojang company made 90million in pure profit Microsoft automatically got all the cash they have been banking over the years plus control over all other assets. Then I believe HoloLens was a key motivating factor as the device seems to be well suited to really benefit from and push Minecraft popularity even moreso.
http://www.wsj.com/articles...
http://www.engadget.com/201...

Folks get it wrong, they did not mean they will recover the 2.5billion back in 2015 what they meant is that they will make a ton more than the 25million vs what that 2.5billion makes in interest while sitting in the bank(GAAP). Minecraft is a global brand on tons of everyday devices with huge merchandising appeal other bigger flashier games will come and go but its the type of game that isnt about complex skill and graphics so it just needs to hang around while being enjoyed by everybody from Grandma to little Billy, to the bored casier at lunch to the long time gamer= for its simplicity= $5 here, $20 there, 6.99 over there, 8.99 for this version, 10bucks for that T-shirt at Target, 50,000£ for using Minecraft in that ad campaign and so on it all adds up. Even when its not in the headlines its still making money....sure its likely to take at least 5yrs or so, before they recoup anywhere close to 2.5billion but the investment is a long term strategy. Microsoft has 85billion in the bank so at some point alot of people smarter than me crunched the numbers and said they will make more than 2.5billion on this investment...after that its pure profit. Its called making money off of money you dont need NOW, make it work for you to increase your overall FUTURE wealth.

TheSaint994d ago

No one thought MS would regret buying it, everyone thought they would regret MS buying it.

They are going to milk and dilute this franchise. That is the issue.

m0lt0n993d ago

They've totally done that so far... oh wait.

Wait and see what they do. MS isnt a stupid company. They wont mess with what isnt broken.

medman993d ago

In order for Minecraft to be "making lots of money for Microsoft", it first has to earn 2.5 billion dollars for them. Only then can it be considered a profit generator. Everything up to this point is just paying back on the investment.

lelo2play994d ago

I don't think Microsoft will ever recover those $2.5 billion spent on Mojang/Minecraft... but what the hell do I know.

Dudebro90994d ago

You couldn't be more wrong.

gamerfan0909994d ago (Edited 994d ago )

MS's own accountant said that they'll make the 2.5 billion back this year.

Jukins, here's an article where MS says they're breaking even this year from the acquisition. http://www.geekwire.com/201...

jukins994d ago

When and where was this said? Proof? Because mojangs best year ever thier profit was 178million. While a majority of that was minecraft there werany other projects that contributes to that. It's gonna take microsoft years to recover the 2.5 billion. If at all. It's Hella popular but I'm sure sales have peaked long ago.

Doja994d ago (Edited 994d ago )

They'll make that back and then some. The money they spent on making the zune on the other hand...

Dudebro90994d ago

What does the Zune have to do with anything?

Naga994d ago

@ Doja

The Zune is a glorious device! Mine survived 3 separate IED blasts with me in Afghanistan and still works to this day.

Seriously. I'm still massively disappointed that it didn't catch on like it should have. It was a superior device offered for a lower price than its competition... it's such a shame.

LexHazard79994d ago (Edited 994d ago )

@Naga, much respect and thanks for service. The Zune was awesome I wish MS couldve held on longer but the Ipod was just to strong.

remixx116994d ago

@naga I salute you and your zune.

Frankly I hated iPods, but brand name carries more weight than actual functionality and quality nowadays.

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Fireseed994d ago

"but what the hell do i know"

Clearly nothing.

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Tedakin994d ago

Well duh. When everyone flipped out over the 2.5 billion I immediately thought they got a bargain. All the merchandise and a movie coming soon. They're going to make a lot more than 2.5 billion over time from Minecraft.

VforVideogames994d ago

Yes in ten years Microsoft get even.

Tedakin994d ago (Edited 994d ago )

Yes and the company will exist for decades to come. They don't have 1 year plans like people on the net do.... Corporations think in terms of forever. Like when Disney paid 4 billion for Lucasfilm.

iSuperSaiyanGod994d ago

It's a long term plan , not a get rich quick scheme. With that being said I think mine craft sucks , butall my little cousins & there friends can't get enough , from costumes to action figures& video games they love it

RG_Dubz994d ago (Edited 994d ago )

Exactly, I don't think these people understand how math works.. It should be blatantly obvious to even the most dimwitted Microsoft fanboy that it's completely impossible to make 2.5 Billion back this year on a company who's peak net profits were under 180 million in a single year.

Even @ 200 million a year it would take roughly 13 years before MS broke even and stared to make a profit.

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