430°

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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christocolus3551d ago (Edited 3551d 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.

-Alpha3550d ago (Edited 3550d 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.

Hellsvacancy3550d ago (Edited 3550d 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_Syndr0me3550d 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..

UltimateMaster3550d ago (Edited 3550d 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.

mrpsychoticstalker3550d ago

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

troylazlow3550d ago

This is great news! *Grabs popcorn*

Pogmathoin3550d 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_X3550d 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.

GrandTheftZamboni3550d ago

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

:)

maniacmayhem3550d 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.

Kidmyst3550d 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.

miyamoto3550d ago

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

Soc53550d 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.

gameDevWannaBe3550d ago

2.5 for a one hit wonder studio?

Gamer19823550d 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.

wsoutlaw873550d 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.

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BattleAxe3550d 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_KELRaTH3550d 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 :)

ThanatosDMC3550d 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.

3550d ago
mhunterjr3550d 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.

assdan3550d ago

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

mixelon3550d 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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getrektedmate3550d ago

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

3550d ago Replies(5)
user3672723550d ago (Edited 3550d 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.

DarkOcelet3550d ago

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

christocolus3550d ago

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

FITgamer3550d ago

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

christocolus3550d 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/

DarkOcelet3550d 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 .

bleedsoe9mm3550d 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 .

ShowGun9013550d 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...

bleedsoe9mm3550d ago (Edited 3550d 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 .

wsoutlaw873550d ago (Edited 3550d 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_Consoles3550d ago (Edited 3550d 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

DarkOcelet3550d ago

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

DOMination-3550d ago

Who cares. Its not your money?

mhunterjr3550d ago (Edited 3550d 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.

maniacmayhem3550d 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.

Fanci3550d 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.

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MajorGecko3550d 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_youth3550d ago

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

Sitdown3550d ago (Edited 3550d 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.

SkippyPaccino3550d 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)

SuperBlur3550d 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

..

Mega243550d 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.

badz1493550d 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.

OpieWinston3550d 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)

gootimes3550d ago (Edited 3550d 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...

Mega243550d 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.

OpieWinston3550d 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.

TongkatAli3550d ago

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

nix3550d ago

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

Kids, these days. I tell you.

f50liv_imposter13550d 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

koolaid2513550d ago

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

Mega243550d ago (Edited 3550d 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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60°

All The References in Minecraft’s 15th Anniversary Map Explained

Minecraft's 15th year anniversary is being celebrated with a new free map, one filled with memorabilia from the game's history.

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gamerant.com
150°

Microsoft to Add Copilot AI to Video Games

Microsoft recently revealed its plans to incorporate Copilot directly into video games, with Minecraft being the first showcased example.

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xpgained.co.uk
Fishy Fingers13d ago (Edited 13d ago )

F*** AI

"Hey Copilot, what's a good meme to prove I dislike AI".... https://giphy.com/clips/sou...

Einhander197213d ago

Two trillion dollar company that just can't wait to put as many people possible out of work as fast as possible.

It feels like every single thing they do is making gaming worse and destroying the industry.

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darthv7212d ago

....you know it takes people to program the AI.... right? It isnt like it is sentient. We haven't reach skynet level of situation or anywhere close to the matrix just yet.

That's next Thursday.

Einhander197212d ago (Edited 12d ago )

It takes a people to program the AI then that AI is used for who knows how many games eliminating countless jobs which only grows as AI is used for more and more game creation functions.

What you're saying is so ridiculously short sighted and truly larking any kind of understanding and foresight.

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CaptainFaisal13d ago

Why all the hate? Im actually excited about this! Always wanted this kind of immersion, and an AI companion with me all the time helping me out knowing the status of my skills/inventory/progress and giving me tips on the best approach or how to craft something specific is game changing for the industry.

Hate all you want about AI, but this is just the start and I can see the potential already. You wont be complaining in the next 5-10 years about this, but rather complain if a game hasn’t implemented it.

MrDead13d ago

Yes we can't wait for the work of others to be used without the need to pay them so that MS can profit even more from the people they fire.

I_am_Batman13d ago (Edited 13d ago )

There is no chance I'd ever use something like this, especially if it's not part of the core game design, but a layer on top of it. It's way too much handholding. Many games already feel like busy work, because they don't let the player figure things out on their own. Having a real-time interactive guide defeats the purpose of playing the game in the first place in my opinion.

If this were to become the standard like you predict, we'll see more and more video games get away with bad design, because people will just be used to ask for help from the AI companion anyway.

Number1TailzFan13d ago

Well Nintendo don't need this with some of their games these days, with invincible characters, items, easy bosses etc.. they do the hand holding built in

helicoptergirl13d ago

Takes "hand holding" in games to a whole new level.

BlackDoomAx11d ago

Because human nature xD Almost every new technology had these kind of comments.

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80°

Microsoft Store Hints At Upcoming Release Of Minecraft: Bedrock Edition On Steam

The Microsoft Store has hinted at the upcoming release of Minecraft: Bedrock Edition on Valve's digital distribution platform, Steam.

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twistedvoxel.com
OtterX15d ago (Edited 15d ago )

1 major advantage to this will be launching it straight from SteamVR. You have to make a custom shortcut to get it working right now in VR.

UltimateOwnage15d ago

This is good news. It will be much easier to get it installed on my devices without using workarounds.