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[thenexus6]

Before selling and leaving Notch planted TNT under everything and will denote soon as he's out and in the clear.

 

[Dehnus]

So that will be F2P Minecraft in which you pay per blocktype or pay 20 bucks for all.

After all MS has to recoup 2.5 billion. Even with 50 million players that is 50 bucks a player!

 

[Tawpgun]

Damn. I remember when this was a dinky little game and buying into the alpha because I liked the premise of it. Crazy how big it got.

 

[Nibel]

The pope has spoken

 

[Alpende]

I still don't get why MS bought them for that much cash. They made 1 game that kind of peaked already...

 

[Alienous]

So that will be F2P Minecraft in which you pay per blocktype or pay 20 bucks for all.

After all MS has to recoup 2.5 billion. Even with 50 million players that is 50 bucks a player!

That's a striking way to look at it.

 

[Freeman]

What is that?

 

[SlipperyMoose]

So that will be F2P Minecraft in which you pay per blocktype or pay 20 bucks for all.

After all MS has to recoup 2.5 billion. Even with 50 million players that is 50 bucks a player!

I don't think you know what you're talking about.

 

[m_shortpants]

I still don't get why MS bought them for that much cash. They made 1 game that kind of peaked already...

They bought the audience. Kids love mine craft, might be bigger than Nintendo for that generation.

 

[Darksol]

Crazy stupid. This'll become another Rare . The important folk have left to potentially continue doing cool things as Microsoft will find innovative new ways to screw this up.

 

[HeartlessNobody213]

I think it's the exact opposite. Microsoft wants and needs Minecraft on every platform possible. The sprawl of Minecraft on all of these platforms is exactly the reason it got big in the first place. I think we see a WiiU version incoming.

I'm inclined to agree. I think the only way we won't see a Wii U version is if Nintendo doesn't want one.

 

[Korosenai]

I still don't get why MS bought them for that much cash. They made 1 game that kind of peaked already...

And how did it "kind of peak" already?

 

[Doug Heffernan]

I still don't get why MS bought them for that much cash. They made 1 game that kind of peaked already...

I think they are betting on Minecraft 2.
It's a big gamble, but the payoff could be huge for Xbox One, Windows Phone & Windows 9.
Add to that they are gambling with tax-free overseas money and it's not a big loss for them if it doesn't work out.

 

[Cornbread78]

Phil gets to have a diabolical laugh as kids sign into their Xbox Live accounts on their PS4s...

Just think, the next patch on all platforms will include the XBox/MS loading screen with the sound and all..

They really need to get a MC themed Vita to help get some hardware sales going. I'd probably buy one for my daughter who has recently become obsessed with the game.

Would probably make a lot of money for both MS and Sony, but probably will not happen under any circumstance now.... Would have been huge....

 

[The Shogun]

I still don't get why MS bought them for that much cash. They made 1 game that kind of peaked already...

There's no way to tell if Minecraft has peaked or not. Certainly sales numbers don't reflect that given NPD and iOS and Android charts.

Plus this isn't about Minecraft as we know it. The fact they specifically mention Xbox Live / Cloud stuff in the press release should be telling. "Minecraft 2" MMO is likely whats coming and could be huge.

 

[Pakkidis]

This is where notch first posted about Minecraft ,its cool reading back now http://forums.tigsource.com/index.php?topic=6273.0

Crazy, looking at that pic I would never have dreamed this would be worth 2.5 billion dollars. What a world we live in.


I am also VERY skeptical that Microsoft will continue Minecraft on other platforms. I fully expect any future minecraft projects to be Microsoft exclusive.

 

[TetraGenesis]

There are only a handful of potential buyers with the resources to grow Minecraft on a scale that it deserves.

Oh my god I so called this line! Hahaha.

I'm really hoping for the classic line where the purchased fellates the purchaser for what they can accomplish now with "their resources".

 

[TheLostBigBoss]

I think people are getting too hopeful in this deal. No, they won't pull support for the other console editions, but the odds of having Minecraft 2 not be an exclusive?

You don't buy an IP/company for 2.5 billion and sell it on the competing consoles.

 

[kinoki]

The big winners of the Xbox One team is NFL, EA and Notch.

 

[Green Yoshi]

2,5 billion dollars? I hope that doesn't mean that Microsoft closes some of their studios to finance the deal. Or was the deal made by Nadella and not by the Xbox department?

I'd hate to be in the shoes of Rare now.

 

[Astro Racer]

It all seems fine for now..... But I know Microsoft too well to know that they will have a stupid idea up their sleeve in the future.

 

[Sinfamy]

Why are you listing DirectX as a negative? The current engine is shit.

Java is garbage, although its easy enough to program and code, and allows for the easily expanding maps.

Though I'd prefer OpenGL for vast support on any platform.

 

[gamechanger87]

So that will be F2P Minecraft in which you pay per blocktype or pay 20 bucks for all.

After all MS has to recoup 2.5 billion. Even with 50 million players that is 50 bucks a player!

No no. See below

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.

 

[Kinky John]

What is that?

Windows Store. You don't need that silly Steam thingy.

 

[ThoughtsOfSpeaking]

The strategy is to monetize the Minecraft IP. Later this year LEGO Minecraft sets are releasing. If standard LEGO IP pricing is the basis they'll be getting close to $10 per each set sold. And they're gonna sell like crazy. Then there's the 55 million community. Microsoft has always wanted to get a huge piece of that Nintendo pie, attractive to families and smaller kids. Minecraft is just that. Minecraft will do what Viva Pinata, Kinect and Project Spark could not do. Minecraft is on every platform, every OS, everywhere. And now Microsoft is everywhere. The publicity that came with this deal is probably already worth some 100 million.

And I'm sure a Minecraft 2 is coming. The logical next step for this thing is to turn it into a massively multiplayer connected world. Have a huge world in the cloud and literally millions playing in it and rebuilding it.

Thank you. One of the first pro-Xbox fans here that seems to get it.

 

[Veritigo_X]

Why are you listing DirectX as a negative? The current engine is shit.

Really limits the platforms it can be on. Conveniently limited to Microsoft platforms.

 

[-SD-]

Microsoft said in a statement it expects the acquisition to be break-even in fiscal year 2015 on a GAAP basis. The deal is expected to close in late 2014.

http://uk.reuters.com/article/2014/09/15/uk-microsoft-mojang-idUKKBN0HA1CY20140915

lol, what?

That's why Mojang said "we're being bought" instead of "we've been bought": https://mojang.com/2014/09/yes-were-being-bought-by-microsoft/

 

[-tetsuo-]

Amazing

 

[eighty(one)]

2,5 billion dollars? I hope that doesn't mean that Microsoft closes some of their studios to finance the deal. Or was the deal made by Nadella and not by the Xbox department?

I'd hate to be in the shoes of Rare now.

I'd hate to be in the shoes of Rare as well, as they weren't even a studio listed in the MS press release.

 

[BGBW]

Guess Nintendo is also going to have to remove the Minecraft level from Smash 4 now.

 

[antipode]

http://www.engadget.com/2014/09/15/microsoft-buying-minecraft/
And for the investors in the crowd, apparently Microsoft isn't too worried about shelling out all that cash. "Microsoft expects the acquisition to be break-even in FY15 on a GAAP basis," the release reads. That's to say Microsoft expects to make back the $2.5 billion it's spending on Minecraft by July 2015. No joke!

This reporter doesn't know what he/she's talking about. "Breakeven on a GAAP basis" does not mean Microsoft expects Minecraft to make $2.5 billion. Not in the next year, not ever.

It means it expects Minecraft to make just enough money to not "dilute" Microsoft's Earnings Per Share. So if Microsoft is making $2.50 or so in earnings per share of Microsoft stock - across the entire giant Microsoft Corporation - it will continue to do that next year, with possibly a small dip this year. That only says a few things:

1) Microsoft can issue debt for relatively cheap. So part of the purchase price is "cheap" because debtholders will pay for it.
2) Microsoft has cash on hand. So again, part of the purchase price is cheap because investors let Microsoft hold cash on their behalf, that Microsoft uses for things like acquisitions.
3) Microsoft isn't issuing an enormous number of new Microsoft shares to make up the difference. If it did, the deal would dilute earnings for existing shareholders, because profitable segments like Windows and Office would have their profits go to the new shareholders.

 

[Alienous]

My little brother just said something that blew my mind.

"What if the next Windows had Minecraft pre-installed"

These potentially genius motherfuckers. That global reach, god damn.

 

[rjc571]

I'm a bit confused as to MS's strategy here. Why spend two and a half BILLION DOLLARS to purchase a company if you're going to allow them to continue making games on their competitors' platforms? Why not spend some of that money on exclusive games? Or on creating a controller whose joysticks don't drift?

 

[Sir_Crocodile]

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.

Yeah, but the question is whether its best years are behind it now. It's already on every platform imaginable, so MS don't get anything for vendor differentiation (although I guess they can now put in on winpho or the supposed all inclusive win9), so it boils down to how popular minecraft will remain. It's been hot for what, 2-3 years. How does MS keep it hot. More expansions? A "Sequel" - and if so do they make in exclusive to MS platforms?

Will be interesting to see where they go. My instinct is that they will never see their investment back.

 

[C.Olimar788]

Rest in peace, Minecraft and Mojang. Rest in peace. It's been a good run.

 

[Nvzman]

Still support Playstation/ios/android?

Bravo Microsoft

Yeah, this caught me off guard. that is a surprisingly kind move from Microsoft.

 

[MilesTeg]

I think people are getting too hopeful in this deal. No, they won't pull support for the other console editions, but the odds of having Minecraft 2 not be an exclusive?

You don't buy an IP/company for 2.5 billion and sell it on the competing consoles.

Like I've said they will use the IP to push their hardware. At the very least that will mean timed exclusive releases. Most likely any possible future releases will hit MS hardware first. They will even prioritize the Windows Phone over iOS. MS wants you in their ecosystem and that's why they bought Minecraft. Who knows how many tablets and phones they can sell with even timed exclusive Minecraft.

 

[MightyHedgehog]

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?

I've got a really simply off-the-cuff answer for that: announce that Minecraft is now included free with all Gold memberships, all future Windows licenses, pre-loaded with all Xbox One systems and Windows Phones. I'm pretty sure that there's a foreign financial reasoning for them expecting break-even beyond those ideas, though.

 

[Chill Penguin]

Crazy stupid. This'll become another Rare . The important folk have left to potentially continue doing cool things as Microsoft will find innovative new ways to screw this up.

This isn't about the company or talent, this was strictly for the IP. The Minecraft IP is way bigger than any Rare IPs. Mojang was sitting on a goldmine that they didn't know how to take advantage of. Just wait for it, we are going to see toys, lunchboxes, t-shirts, movies, cartoons, etc.

 

[Sho_Nuff82]

I think people are getting too hopeful in this deal. No, they won't pull support for the other console editions, but the odds of having Minecraft 2 not be an exclusive?

You don't buy an IP/company for 2.5 billion and sell it on the competing consoles.

If MS, as a company, sees Minecraft as > "Xbox" >>>>> "Windows Phone", why would they make it exclusive?

The point of the acquisition is to make money, not prop up a flailing business that the CEO had no hand in creating. I also doubt that a hypothetical Minecraft 2 will hit Playstation platforms day one, but it's definitely going to be on Mac/iOS/Android devices around the world. Timed exclusive on Xbox would have the same effect that 360 edition did - the lion's share of sales would be on Xbox One, but they'd still make money on other platforms.

 

[Garrett Hawke]

Is it platform owners buying devs you have an issue with or Microsoft buying devs?

Platform owners either taking multiplatform games (TR fiasco) or buying multiplatform devs with the (presumed) intentions of making the version of their games on their platform better, so as to increase the perceived value of their platform.

 

[The Shogun]

I'm a bit confused as to MS's strategy here. Why spend two and a half BILLION DOLLARS to purchase a company if you're going to allow them to continue making games on their competitors' platforms? Why not spend some of that money on exclusive games? Or on creating a controller whose joysticks don't drift?

Because people are looking at this as an Xbox deal. Its not. MS are looking at this as its own platform. Putting it on everything increases available user base and revenue streams. This is especially important if Minecraft 2 is some sort of MMO with either a monthly fee or Micro transactions.

 

[gamechanger87]

This reporter doesn't know what he/she's talking about. "Breakeven on a GAAP basis" does not mean Microsoft expects Minecraft to make $2.5 billion. Not in the next year, not ever.

It means it expects Minecraft to make just enough money to not "dilute" Microsoft's Earnings Per Share. So if Microsoft is making $2.50 or so in earnings per share of Microsoft stock - across the entire giant Microsoft Corporation - it will continue to do that next year, with possibly a small dip this year. That only says a few things:

1) Microsoft can issue debt for relatively cheap. So part of the purchase price is "cheap" because debtholders will pay for it.
2) Microsoft has cash on hand. So again, part of the purchase price is cheap because investors let Microsoft hold cash on their behalf, that Microsoft uses for things like acquisitions.
3) Microsoft isn't issuing an enormous number of new Microsoft shares to make up the difference. If it did, the deal would dilute earnings for existing shareholders, because profitable segments like Windows and Office would have their profits go to the new shareholders.

You are correct that most people don't understand what MS is saying, but you are missing out on two things. One, the transaction was funded with offshore cash which really has no value to MS' shareholders in its current state. Two, the transaction will likely have significant tax benefits based on the assumed step up and intangible amort.

 

[Mask]

As long as they keep supporting Minecraft on other platforms, and don't get any crazy exclusivity ideas, everything will be just dandy.

As others have said, this is a move to break away from being a one console company. I wouldn't be too shocked to see some of their other Ips on other consoles too in a few years.

 

[Cornbread78]

Yeah, this caught me off guard. that is a surprisingly kind move from Microsoft.

huh....read closer at the presser kind gesture in print, but they are in it for the money on tha back-end.. This will not stay cheap for Sony and Apple, outside of the instant advertising with an MS logo on load-ups screens for every version once patched, then the support will not be free going forward. That way, it will be the "other companies fault" for not contuing to suport the game. It's a brilliant move right there.

 

[RedRooster]

There's probably still some life left in this franchise, I've got no qualms with this purchase if it continues to be on all platforms for everyone's enjoyment.

But man, if whoever owns the Lego license ever got their act in gear and made a PROPER Lego game like everyone wants, Minecraft would become irrelevant very quickly.

 

[MilesTeg]

My little brother just said something that blew my mind.

"What if the next Windows had Minecraft pre-installed"

These potentially genius motherfuckers. That global reach, god damn.

Definitely an anticipated move imo.

 

[Guerrillas in the Mist]

I imagine they'll enter into some licensing agreement with Sony.

I wonder what will happen to 4J Studios? If MS decides to bring development in house, that's a huge chunk of their work out of the window...

They also did the XBLA ports of Perfect Dark and the Banjo games, so if anything they could be working more closely with MS, or even getting acquired.

 

[Yrael]

My little brother just said something that blew my mind.

"What if the next Windows had Minecraft pre-installed"

These potentially genius motherfuckers. That global reach, god damn.

This is something I can easily see happening.

 

[Daffy Duck]

You don't buy an IP/company for 2.5 billion and sell it on the competing consoles.

You do if you want to make that money back!