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Microsoft announces purchase of Minecraft creator Mojang

HF2014

Member
SEtCleT.png


Amazing

Post of the year.

Its not the real Sony CEO huh? Fake account?
 

SEGAvangelist

Gold Member
My biggest worry is if C418 is gonna get replaced as Minecrafts composer. I don't particularly enjoy the second set of Minecraft songs that much but he's still the guy responsible for my favorite ambient soundtrack ever.

Why would they get rid of him? He can possibly get an even bigger paycheck now.
 

jelly

Member
It will be quite a change, studio ramp up is needed and Java must be first to go.

Makes me wonder if they'll ever do Minecraft 2.0, just redo and upgrade what already exists and keep it just Minecraft.
 

Delio

Member
reading that, it looks like the nearly impossible WiiU version is now upgraded to very unlikely.

Not much of an upgrade there. I only hope they do put it on Nintendo systems. Since everyone is chanting that minecraft is on everything when it isnt.
 

zashga

Member
Pack it in, Minecraft had a good run .

Seriously, though, please look forward to exciting new monetization opportunities in Minecraft 2.0. Free skins and mods? This isn't communist Sweden anymore, you'll buy your add-on content as God intended.
 
The "this has nothing to do with Xbox" people amuse me. Sure, it's not only about Xbox. But look at the link this story comes from. Look at the guy who made the deal happen. Look at the guy who made a video announcement, who references the 360 version and specifically mentions Xbox at the end of the video. Just so happens he is in charge of Xbox. I mean come on.

Of course its still a nice get for Xbox. They may even offer incentives to get that version such as exclusive betas, quicker updates, etc.

If however they make future Minecraft games / add ons Xbox only its a colossal mistake. They simply will have hugely narrowed profit opportunities. If this had been a smaller purchase price making it exclusive would make sense but for 2.5 billion you need every available consumer to recoup that.
 

Peterpan

Member
And that's all I've been saying - that this is great for MS. I'm not saying it wouldn't be bad for PS only people. If MC2 comes out and excludes Playstation, of course it would be bad, especially for kids that only have access to a Playstation. At the same time, nothing's stopping them from trading in the PS4 for an Xbone and if MS does make the next MC exclusive, that's exactly what they'll be hoping for.

Also this strategy for MS, in my opinion is a winning one. Of course Mojang isn't being bought solely because of the Xbox, but if MS carries on this strategy of buying more game devs, I feel like this is how they will compete and turn the Xbox around. It's too late for MS to develop devs in-house as you wouldn't see the fruits of the labor until near the time the Xbox Two comes out. Sony has those solidly in place already. What MS has that Sony doesn't is money and lots of it. They can accelerate the 1st party studio support simply by buying a bunch of established developers and probably for less than they paid for Mojang. With all of the offshore money, foreign devs from Europe and Japan would be good targets as they'd get far more value spending it than bringing it back and storing it in the coffers where it'll be destroyed by taxes.
And how many studios has Sony actually ever created honestly. Most are bought infact. Microsoft actually have built more internal studios, maybe I'm wrong.
 
They probably will get them some very talented people for the dev team. This could actualy benefit Minecraft greatly because there is so much unused potential in that game.
 

Peterpan

Member
The "this has nothing to do with Xbox" people amuse me. Sure, it's not only about Xbox. But look at the link this story comes from. Look at the guy who made the deal happen. Look at the guy who made a video announcement, who references the 360 version and specifically mentions Xbox at the end of the video. Just so happens he is in charge of Xbox. I mean come on.
So who should announce the deal. All game related things go under Microsoft Studios. So Mojang will report to Spencer even if others in the company wanted it to happen. Its much bigger than Xbox, but Spencer still knows the what and who of gaming, it makes sense to allow someone that gamers are familiar with announce it than some higher up random, because it is a game after all in the end. I doubt Nadella would announce it honestly.
 

Zubz

Banned

I love that Twitter and everything about it.

I don't know if Microsoft will screw this up as much as they did with Rare, though; their IPs were powerfully 90s, so even if the retools were abysmal, it's not like they were going to live much longer without a talented team (Remember, Nintendo gave Rare their IPs, so Microsoft honestly just wanted the devs, who mostly jumped ship due to just wanting the money from the buy-out or not liking working with Microsoft. Blame Howard Lincoln's friendship with the Stamper Bros. and Hiroshi Yamauchi's bitterness for Banjo-Kazooie being dead instead of being Retro's next big revival; those franchises were literally given away, and none of those 4 have anything to do with Microsoft or Nintendo anymore).

Meanwhile, Minecraft's everywhere, to a nigh-obnoxious degree. Minecraft T-Shirts, backpacks, figures, foam swords/pick-axes, LEGOs, etc. are everywhere. Banjo-Kazooie had a good fanbase, but Minecraft's officially more than a game: it's a cultural phenomenon. $2.5 Billion? That's way too much, but they're totally gonna make every cent of that purchase back.

Then again, it still is Microsoft we're talking about here...

EDIT:
Microsoft expects to earn the money back in a YEAR.

What.

Like, really, what?

From just over a hundred million a year, to over 2.5 Billion in a year? Sure that makes sense.

Never mind, they're totally being Microsoft about it.
 

hoos30

Member
IF Microsoft plays this right, Minecraft could be the first cross play, device agnostic game.

Kid 1: "Hey guys, after school, meet me at the dragon castle."

Kid 2: "Can't. I have soccer. But we can hang out for a while while I'm riding over there."

So, less like Halo and more like...email.
 

Yeah, but people said it already sold to everyone who wanted it.
 
This is now at a fork for minecraft.

Microsoft need to do the following to keep it afloat.

- Recompile the game on PC to not use Java, and actually optimise it.
- Ensure mod support will remain.
- My personal favourite - Try to incorporate Unreal into it.
- Constant Updates!!! This is what makes it always popular.
 

Guevara

Member
Code:
+------------+------+
|   sales    | days |
+------------+------+
| 1m to 2m   |  102 |
| 2m to 3m   |  162 |
| 3m to 4m   |   93 |
| 4m to 5m   |  140 |
| 5m to 6m   |   61 |
| 6m to 7m   |   80 |
| 7m to 8m   |   91 |
| 8m to 9m   |   71 |
| 9m to 10m  |   73 |
| 10m to 11m |   80 |
| 11m to 12m |   71 |
| 12m to 13m |  101 |
| 13m to 14m |   50 |
| 14m to 15m |   87 |
| 15m to 16m |   70 |
+------------+------+

Was curious how Minecraft PC is selling compared to past years. Seems like it's still going strong.
Now this is surprising and impressive to me.
 

Zomba13

Member
I don't care who owns Minecraft as long as it still exists on all the other platforms and continues to receive support on those platforms. It would be very easy for MS to just stop support for it on other devices or to delay updates but I really do hope they continue to work on them together, without giving one version priority. It'd also be nice if there could be an updated PC version that doesn't run on Java but I honestly don't expect that.

With MS's resources they can transform Minecraft into a platform, something you can access anywhere at any time on any device. I really hope they go the open, friendly and cool route rather than the Rare route or immediately start work on a Minecraft 2 "exclusive on xbox!".
 

Cha

Member
No interest in Minecraft, but I know how big the community is. Gotta say that MS aiming to maintain multi-platform support for the game is a great move. Good stuff.
 

Valentus

Member
Minecraft 2 without Notch and his pals would be like Dragon Quest without Horii or Final Fantasy with Sakag... Oh wait.

Smart move by Microsoft by the way, but the more i see the regime of Spencer, the more i cant see the difference with Mattrick's administration.
 

Cornbread78

Member
IF Microsoft plays this right, Minecraft could be the first cross play, device agnostic game.

Kid 1: "Hey guys, after school, meet me at the dragon castle."

Kid 2: "Can't. I have soccer. But we can hang out for a while while I'm riding over there."

So, less like Halo and more like...email.




It's already like this with all the Minecraft chat forums out there.
 
Not sure how MS expects Mojang to make 2.5 billion in less than a year.

The $2.5B is offset by a number of factors. They don't expect $2.5B in CASH, just EARNINGS. The transaction enables them to use the cash in a tax efficient manner which building their own tax shield. THEY ARE NOT EXPECTING TO MAKE $2.5B IN DIRECT EARNINGS THIS YEAR. The international cash is essentially useless for shareholders unless MS does something like this with it or repatriates it.

Beyond the tax benefits of not having to repatriate the cash, they will likely benefit from a huge step up in the tax basis of the business. The significant amount of intangibles generated by this transaction will be amortized over the next 15 years enabling MS to reduce its Taxable Income. This shield, combined with the benefit of not having to repatriate the cash significantly lowers the breakeven threshold. Adding in the revenue on top is icing on the cake.

For those wondering how things like this can happen, you need to understand that GAAP is an odd beast and there are a lot of ways you can structure a transaction to make it neutral. GAAP is not CASH. They are not going to be breakeven on this within the year. However, on a GAAP basis they are likely in a good spot and this is a much better use of their International cash than anything they looked at.
 

Valente

Neo Member
If they're smart Microsoft will finally release Minecraft on Steam. Guarantee you they get another 4-5 million sales at least. This thing has not plateaued yet. Minecraft has replaced Nintendo in kids eyes.
 

diamount

Banned
With the original founders leaving, I'm not sure if the ip alone is worth 2.5 big ones.

I don't think the average consumer of Minecraft even know who those people are/care. Microsft purchased Mojang to acquire the IP. I suspect Mojang themselves will either be shut dow and staff layed off once Microsoft start putting hundreds of staff on Minecraft 2.
 

Mendax

Member
investors and shareholders were already crying a lot about how microsoft should focus on OS and Office, and now theyve gone and wasted 2,5bn on nothing.

investors am cry?
 

mrklaw

MrArseFace
I'm just worried about jeb etc back at mojang. For all the nice comments from Phil Spencer, MS can be pretty cold blooded when they want to. If they wanted to being development in-house they'd just do it in the blink of an eye.

While I'm happy Notch etc are cashing out, I don't want it to be at the expense of those guys
 

MilesTeg

Banned
So who should announce the deal. All game related things go under Microsoft Studios. So Mojang will report to Spencer even if others in the company wanted it to happen. Its much bigger than Xbox, but Spencer still knows the what and who of gaming, it makes sense to allow someone that gamers are familiar with announce it than some higher up random, because it is a game after all in the end. I doubt Nadella would announce it honestly.

Bottom line is the purchase still has Xbox implications. Saying it has nothing to do with Xbox is simply wrong. I agree that it's much bigger than Xbox but that doesn't mean it has nothing to do with Xbox.
 

Salty Hippo

Member
(Remember, Nintendo gave Rare their IPs, so Microsoft honestly just wanted the devs

Source? I never heard about this and find it very hard to believe that Nintendo would give away free IPs and that Microsoft paid 400 million just for a studio and its staff.
 
investors and shareholders were already crying a lot about how microsoft should focus on OS and Office, and now theyve gone and wasted 2,5bn on nothing.

investors am cry?

Nope. The international cash has limited value for MS' investors. Similar to what Apple is dealing with. You can't dividend it or put it to any use in the US. Both companies are hoping the US government runs an amnesty program so they can repatriate tax free, but the IRS won't do it because it will set a precedent and companies will continue to horde cash and wait for the amnesty.
 

Bsigg12

Member
I don't care who owns Minecraft as long as it still exists on all the other platforms and continues to receive support on those platforms. It would be very easy for MS to just stop support for it on other devices or to delay updates but I really do hope they continue to work on them together, without giving one version priority. It'd also be nice if there could be an updated PC version that doesn't run on Java but I honestly don't expect that.

With MS's resources they can transform Minecraft into a platform, something you can access anywhere at any time on any device. I really hope they go the open, friendly and cool route rather than the Rare route or immediately start work on a Minecraft 2 "exclusive on xbox!".

They would be devaluing their $2.5 billion purchase if they were to move it exclusively onto Xbox/PC/Windows Phone. This is a move for Microsoft, not just Xbox, they will keep it on all existing platforms while building on the game. Ultimately I see the PC version moving away from Java (which could be amazing if it was better optimized for RAM usage) and the mobile versions getting an even bigger push. The console/Vita versions will continue to be handled by 4J.
 

Kuni

Member
That is why we plan to continue to make Minecraft available across platforms – including iOS, Android and PlayStation, in addition to Xbox and PC.

I'm impressed... MS have made a positive consumer decision!? This was a real test for MS and I'm glad to see they've made the right decision. MS could be in for some really good times under Nadella\Spencer if this is the *new* MS.

Of course if they did try to lock it down it wouldn't be pretty... the game is just too big for that now and doing so would've just damaged the epic brand that is Minecraft.

So I'm actually quite happy with this. Not only is Minecraft safe (it seems) but it also indicates what the new MS and Xbox could be all about.... and for the first time ever... I like it.
 
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