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Microsoft Acquiring 'Minecraft' Developer Mojang for $2.5 Billion

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Original poster
Apr 12, 2001
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Microsoft today announced the acquisition of Mojang, the company behind the popular crafting game Minecraft. Both Microsoft and Mojang confirmed the Redmond company paid $2.5 billion for the gaming franchise in a deal expected to close in late 2014.

minecraftpocket.jpg
Microsoft bought Minecraft following the game's success on the Xbox platform and PC, where it has logged over 100 million downloads since its 2009 launch. Though its financial interests are focused on the Xbox and Windows PC, Microsoft confirmed that Minecraft development will continue on all existing gaming platforms, including iOS, where Minecraft Pocket Edition [Direct Link] consistently ranks near the top of the paid app charts.
"Gaming is the top activity across devices and we see great potential to continue to grow the Minecraft community and nurture the franchise. That is why we plan to continue to make Minecraft available across platforms - including iOS, Android and PlayStation, in addition to Xbox and PC."
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As part of the deal, Mojang founders Carl Manneh, Markus Persson (Notch) and Jakob Porsér are leaving the company to work on new projects. The remaining team will continue to work at Mojang under the guidance of Microsoft, which expects to recoup its investment by the end of 2015.




Article Link: Microsoft Acquiring 'Minecraft' Developer Mojang for $2.5 Billion
 
Article Link
https://www.macrumors.com/2014/09/15/microsoft-minecraft/
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smokestack

macrumors member
Feb 12, 2008
82
14
I still have no idea what the appeal of this game is. Or really what it is all about.
Is it all world building? Does it run like a MMORPG?
And how is it this valuable for Microsoft? Is it possible to turn it in to what Sony's failed PS3 'home' service was?
 
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AnsonX10

macrumors member
Apr 20, 2009
69
69
4/20
smokestack said:
I still have no idea what the appeal of this game is. Or really what it is all about.
Is it all world building? Does it run like a MMORPG?
And how is it this valuable for Microsoft? Is it possible to turn it in to what Sony's failed PS3 'home' service was?
Click to expand...

Imagine being able to build a house however you want it, then build all sorts of contraptions, then build a realistic nuclear reactor to power everything. And then upgrade all three of those as you progress technologically.

I never play vanilla. I'm really only worried about the mods.
 
D

Demon Hunter

macrumors 68020
Mar 30, 2004
2,284
39
smokestack said:
I still have no idea what the appeal of this game is. Or really what it is all about.
Is it all world building? Does it run like a MMORPG?
And how is it this valuable for Microsoft? Is it possible to turn it in to what Sony's failed PS3 'home' service was?
Click to expand...

It's a digital sandbox. You can engineer virtual circuit-boards, or make a replica of the Taj Mahal. It's a malleable, block-building platform with some RPG and survival elements thrown in.

How is that valuable to Microsoft, you ask?

In a boardroom somewhere in Redmond...

"We're becoming irrelevant! Let's purchase something that's relevant! A company, an IP, anything! What's relevant these days?"

"MINECRAFT IS RELEVANT!"
 
L

Lord Hamsa

macrumors 6502a
Jul 16, 2013
696
666
MacRumors said:
The remaining team will continue to work at Mojang under the guidance of Microsoft, which expects to recoup its investment by the end of 2015.
Click to expand...

Say what? Minecraft is popular, but there's no way Microsoft clears $2.5B in profit on it in one year.
 
rwilliams

rwilliams

macrumors 68040
Apr 8, 2009
3,713
972
Raleigh, NC
God as my witness, I do not understand the appeal of Minecraft. But it must be doing really well to command this kind of price tag.
 
Dekema2

Dekema2

macrumors 6502a
Jul 27, 2012
855
437
WNY or Utica
As a Minecraft server owner myself, I am pretty disappointed. Many of us feel as though it takes a personal connection away and makes it feel commercialized.
 
Menel

Menel

Suspended
Aug 4, 2011
6,351
1,355
Lord Hamsa said:
Say what? Minecraft is popular, but there's no way Microsoft clears $2.5B in profit on it in one year.
Click to expand...

Their website says it's $13/mo subscription.
But how many subscribers, I can't find that.

By my calculation. 2.5B / $13 / 15mo = 12.8 million subscribers.

That seems feasible.
 
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Lord Hamsa

macrumors 6502a
Jul 16, 2013
696
666
AnsonX10 said:
A year and 3.5 months. Let's be serious here.
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The deal won't likely close until the end of the year, so there go the extra 3.5 months.

----------
Menel said:
Their website says it's $13/mo subscription.
But how many subscribers, I can't find that.

By my calculation. 2.5B / $13 / 15mo = 12.8 million subscribers.

That seems feasible.
Click to expand...

For the Realms server. Not everyone plays on that. And remember, they need $2.5B in profit, not revenue, to make back their investment.
 
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smoledman

macrumors 68000
Oct 17, 2011
1,943
364
What are the chances that most of the talented developers leave because they hate Microsoft? So in the end MS buys the IP.
 
stiligFox

stiligFox

macrumors 65816
Apr 24, 2009
1,456
1,223
10.0.1.3
Menel said:
Their website says it's $13/mo subscription.
But how many subscribers, I can't find that.

By my calculation. 2.5B / $13 / 15mo = 12.8 million subscribers.

That seems feasible.
Click to expand...

That's actually the cost to run a server hosted by Mojang. Minecraft itself is like $25, you can them join other people's servers for free or play by yourself for free. There is no required subscription.

You can also host your own server with which you can run mods and such. That $13/mo is merely a convient and easy way to play with friends but it is not necessary by any means.
 
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smoledman

macrumors 68000
Oct 17, 2011
1,943
364
The larger issue is this continues a trend of MS WAY overpaying for acquisitions.

aQuantive, Danger, Skype, Nokia and now Mojang.

Not to mention the $15 billion down the hole for XBox since 2000.

No wonder MS is being written off as irrelevant.
 
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