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Microsoft announces purchase of Minecraft creator Mojang

TalonJH

Member
I'm more interested in seeing if the PS versions will continue to receive updates at the same pace as Xbox versions and will 4J continue to work on the PS exclusives skins as they do MS skins. I'll have a lot of respect for them if they do.
 
They need to stick to their word and keep supporting it on all platforms.

...until Minecraft 2 comes out.

They have no choice but to keep selling Minecraft on Playstation because it's already out; but you can bet any expansions, sequels or spinoffs will be fully Microsoft exclusive.
 
A fear of success like this so clearly on display is not a good thing, especially under the naive belief everything can go back to how it was and he can have "twitter opinions" again like he pines for in his letter.

I don't see why not. Nobody gives a shit what Trip Hawkins has to say about anything, and people barely give a shit about Cliffy B.
 

NervousXtian

Thought Emoji Movie was good. Take that as you will.
Can we stop with the Angry Birds stuff... Minecraft is NOT Angry Birds.. in any way at all. It's an absurd comparison.

Also stop with the Rare comparisons. Rare's failures is as much about a drastically changing market as it is about mis-management. Rare made game's in dying genres. Plain and simple.

Besides that Rare NEVER had a game as big as Minecraft. Something with the potential of Minecraft.. something as established as Minecraft.

It's an absurd comparison as well.
 
GAAP is a finicky beast. There are a lot of ways you can move stuff around to make something neutral.

This is more of a cash play by MS. They have around $90B in cash trapped overseas, and they can't figure out the best way to use it. They don't want to repatriate it and get pummeled with tax (like Apple) so they would like to invest it outside of the country if possible. Mojang is based out of Sweden, and this investment lets them use this cash to acquire Mojang.

They should grab Remedy next, then.
 
lol Those are some Square Enix level of expectations there. Unless they mean overall earnings will make up for the purchase and not only revenue from the actual mojang deal.

What is GAAP btw?

GAAP is Generally Accepted Accounting Principles. Its a framework of accounting principles that are used by accountants in the US for Auditing purposes. Outside the US you will usually see IFRS.
 
Ill keep saying this. The only way this acquisition makes any sense is if minecraft is going to be grown into a gaming platform far bigger than any gaaming franchise before it.

They didnt spend 2.5 billion to sell a couple million more Xbox ones. Its way way way bigger than that.

I'll keep [selfishly] hoping for a dedicated gaming handheld from Xbox to compete against N3DS and PS Vita, and the two launch titles are Minecraft and portable Halo.

Should have bought Respawn instead.

Titanfall's hype is a dim candle compared to the way Minecraft has lit the world on fire, forever changing gaming. Hell, a lot of people would argue that Steve is a bigger gaming icon now than Mario currently is. THAT is bigger than what'll come out of an FPS studio.
 

RealMeat

Banned
People keep making these posts as if Notch himself or Mojang is worth anything to MS. They're not. Microsoft is buying a brand and an audience, and even Minecraft as it exists right now is just a bonus. I'd bet real money that MS would have payed the exact amount for the IP rights alone, but Notch clearly wanted to be rid of the whole thing, and that includes Mojang.

I agree, I just question if they'll get the audience. They could have make a new game that blows Minecraft out of the water from a feature standpoint for 1% of what they're paying. If people wouldn't have bought that, will they buy Minecraft 2 from Microsoft?
 

Xpliskin

Member
Can someone explain in short what value Mojang has that would justify such an astronomical buyout ?

What's the strategy ?
 

flkraven

Member
You are the one not looking hard enough. Microsoft doesnt want a mario, it wants something even bigger than Angry birds.

Minecraft is going to Microsofts Mickey mouse.

Angry Birds' profits are down 50% year over year and has only been established for a few years. They are a decaying brand. Meanwhile, Mario was a name synonymous with gaming for over 20 years, and has proven to have a much higher staying power. Microsoft would easily prefer the next Mario vs the flash in the pan Angry Birds.
 
Dreaming? It makes perfect sense from their perspective. They'll use Minecraft to be the trojan horse that TV TV TV never could be.

Once again. This is far bigger than Xbox. You are looking through the lens of a core gamer. Before this decade is out Minecraft will on every platform that has internet access.
 

markot

Banned
Microsoft... You could have spent a fraction of that on hiring competent executives instead.

A good indicator of a good executive would be, for example, one who says 'no, that's crazy, it's not worth nearly that much' when asked if they should spend over 2 billion bucks on mojang.
 

MUnited83

For you.
Because they are competitors. Minecraft on Playstation benefits Microsoft more than it does Sony. Take that away and it's millions of potential sales lost.

That's not how business works. If Microsoft wants to publish a game on a Playstation platform, they can do so. There's no reason to "prevent" them of doing so. Sony and any other business where the guys who run it have at least half a brain will take the money that the sales will give instead of removing it just because "lol wutz they are competitors, bettah remove it bcz reasons lol".


I can guarantee 100% that Sony will not ever remove Minecraft of their own platforms by their own will.
 
They should grab Remedy next, then.

Its not out of the cards. They are acting like a first party studio already, and if Remedy is open to it and QB takes off don't be surprised if MS floats an offer. Remedy may not want to sell and thus the offer is more a gesture of goodwill. Not sure how the agreement between MS and Remedy is structured, but they may have an opportunity to match any offer on the Company.

With Mojang, there was a really eager seller.
 
It's a java game. As long as it's a java game, it can run on Linux. (Note: I didn't say will though.)

Who knows how much longer it will stay a Java game though. If I were Microsoft that would be the first thing I change about Minecraft. They already have a working C# implementation of it for Xbox they could use as a starting point. I'm more partial to C++ but C# would still have a performance increase.
 
Just noticed they omitted that too... Could've been accidental. Everyone forgets about Linux.

Microsoft very rarely even acknowledges the existence of Linux. I could see them dropping Linux support if they ditch Java. Then again, Skype is still fine and dandy on Linux. Impossible to tell at this point.
 

Tagg9

Member
Can someone explain in short what value Mojang has that would justify such an astronomical buyout ?

What's the strategy ?

Mojang has almost no value. The absurd pricetag is for Minecraft brand, which is a global franchise at this point.
 
Angry Birds' profits are down 50% year over year and has only been established for a few years. They are a decaying brand. Meanwhile, Mario was a name synonymous with gaming for over 20 years, and has proven to have a much higher staying power. Microsoft would easily prefer the next Mario vs the flash in the pan Angry Birds.

Bigger than angry birds.

As of today, Minecraft is a platform, not just a gaming franchise.
 
I agree, I just question if they'll get the audience. They could have make a new game that blows Minecraft out of the water from a feature standpoint for 1% of what they're paying. If people wouldn't have bought that, will they buy Minecraft 2 from Microsoft?
Don't underestimate the name. It is almost universally recognized. With actual marketing you can create something big.
 
Anyone who thought that MS would buy this and just drop minecraft support on non MS platforms was insane. MS will probably get this on Nintendo finally.
 
Can someone explain in short what value Mojang has that would justify such an astronomical buyout ?

What's the strategy ?

Put it this way. Think of massive games like Call of Duty, World of Warcraft, Assassin's Creed, Grand Theft Auto, etc.

Minecraft has more sales and a larger userbase than all of those.

A Minecraft 2 done right has astronomical sales potential not to mention its merchandising and toys.
 

Elrina

Neo Member
People going on about Minecraft getting a direct sequel, a "Minecraft 2", are being silly. It won't happen. Minecraft is too big, it isn't about a sequential series of games, it's going to continue growing as what it already is.

A Minecraft 2.0 version update, on the other hand ~ We'll be seeing that, probably on every platform, although a period of timed exclusivity wouldn't be surprising. And it will probably be a paid expansion rather than a normal version update. (Although if it catches up the platforms lagging behind vanilla PC in content it would be worth it imo.)
 

Krilekk

Banned
I'm just not seeing $2.5B of value here, but it wouldn't be the first time MS pay way too much for something.

Mojan made 200 million profit last year. At 12x profit that's actually a pretty reasonable valuation. Especially considering only half of that came from game sales, the rest was merchandising.
 

Dega

Eeny Meenie Penis
Possibly a very dumb move from MS too. 2.5 billion is a lot of money to make back.

Sure, if things do go bad though a company like MS can handle a loss that big fairly well. They'll make a lot of money back before then anyway and a hell of a lot more if they nurture this IP correctly.
 

I Wanna Be The Guy

U-S-A! U-S-A! U-S-A!
window-wiiu.jpg
This picture made me realise something. This deal pretty much confirms that Nintendo platforms will never get Minecraft at all. I mean yeah they wont pull existing versions or the almost done Vita version, but there's no way another version of Minecraft for a competing system will ever come out from now on.
 
Mojang has almost no value. The absurd pricetag is for Minecraft brand, which is a global franchise at this point.

Thing is, Mojang didn't even own Minecraft, Notch Developments did (as far as I can tell, also Scrolls is definitely Mojang owned) so if Microsoft didn't want Mojang they presumably didn't need to purchase them.

Obviously they have the knowledge/expertise of the product so it makes sense to, but yeh I doubt Mojang were worth a whole lot in this deal
 
How can they break-even in one year's time? Mojang doesn't make 2.5 billion per year ... the maths doesn't make sense. Even if it did, why sell it for only a year's worth of revenue?
 

StuBurns

Banned
I'm stunned they're going to support PlayStation, I'm sure MC2 won't be on there, but this is still extremely impressive.
 

mrklaw

MrArseFace
They get revenue from every copy sold going forward. The game hasn't stopped selling, it was #3 overall in August NPD and it's still in the top of the PAL charts. That's not even counting the PC and mobile revenue, or merchandise revenue (which could be a lot higher than any of us imagine, I don't believe that Mojang was a public company before now).

all of the copies sold to date would be less than $2.5bn in revenue, let alone profit (although PC versions are pretty much only profit)

got to be some accounting/offshore fund creativity going on to break even in FY2015. Although with MS' year being from June that would be by June 2016? Still too short
 

EGM1966

Member
I honestly still find this move perplexing. I mean sure they've generate revenue but even Minecraft revenue is arguably small stuff for MS overall. They've now said in black and white they'll support all platforms so how the hell will this do what MS needs most which is help their mobile and tablet platform penetration?

Very curious to see how it all plays out but I'm just missing the angle - unless this signals that at some point MS is seriously going to either spin off or drop Xbox and focus on going platform agnostic with content and services.
 

NervousXtian

Thought Emoji Movie was good. Take that as you will.
Dreaming? It makes perfect sense from their perspective. They'll use Minecraft to be the trojan horse that TV TV TV never could be.

You could never make back the 2.5b trying to just sell Xbone's.

People buy Minecraft on every platform they own.. they don't buy a platform FOR Minecraft.

That's not going to change.
 
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