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Microsoft buys Minecraft for $2.5bn

September 15, 2014
Reading Time: 2 mins read
Microsoft buys Minecraft for $2.5bn
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Microsoft has bought Mojang, the Swedish firm behind the popular video game Minecraft, for $2.5bn (£1.5bn).

The best-selling title, which boasts 100 million users, allows players to build structures with retro Lego-style blocks, as well as explore a large map and battle others.

The deal was announced by Xbox chief Phil Spencer.

Some analysts have speculated the deal is designed to attract more users to Microsoft’s Windows Phone devices.

The acquisition comes a year after Microsoft bought the Finnish mobile phone firm Nokia.

Minecraft is one of the top-selling apps on both Apple’s iOS store and and Android’s Google Play, and has recently been released for the Xbox One and PlayStation 4, further boosting sales.

Last month, it was the third most popular console game, according to market research firm NPD Group, despite being on sale for a while.

The game’s developer, Mojang, which was founded in 2009, brought in over $100m in profit last year, and employs about 40 people.

Opposition to sale

Mojang’s founder, Markus “Notch” Persson, has previously criticised Microsoft, and commented to Reuters that the market for Windows phones was “tiny” and not worth developing apps for.

Hunger Games in Minecraft
Minecraft encourages users to build their own versions of the game, such as this Hunger Games title.

Minecraft has a large and enthusiastic cult following, many of whom have reacted angrily to what they see as a corporate takeover of a communally-spirited independent company.

“Makes me sick, and sad,” wrote one user on a popular Minecraft forum. “It would kill the gaming community,” EvilBatsu added.

Others expressed concerns about whether fans would be able to exhibit their skills.

“Not only will it cost more money to play the game it will cost people their jobs too. Many people play Minecraft and upload it to YouTube as their career, but if Microsoft takes over there will for sure be copyright issues.”

However some enthusiasts made the point that Microsoft could devote larger resources to upgrading and expanding the game.

Why Minecraft?

James McQuivey of analytics firm Forrester, noted that “Minecraft is one of the most important gaming properties in the world”.

“Not only is it profitable, but it continues to increase in profits years after its release, largely due to the passionate fan base that invests in building out their own Minecraft worlds.

House
Many Minecraft enthusiasts build detailed structures, such as this house

“That helps explain why Microsoft would want Minecraft and would want to ensure it is always available on Microsoft’s gaming platforms.

Prof Mark Skilton, from Warwick Business School, said the acquisition was about building a “strong customer base” for Microsoft.

“The online gaming industry is fast moving from niche collective enthusiast to mass market and Minecraft is a logical move as big business follows the traffic numbers in the digital world.”

Last month, Amazon bought Twitch, a site which allows users to watch other people play video games, for $970m (£597m).

 

Source: BBC

Tags: Dr. Akwasi Osei
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