• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Microsoft announces purchase of Minecraft creator Mojang

Dega

Eeny Meenie Penis
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 think they mean as a company they will make all that money back by then. Which MS makes a shit load of money every year so yeah.
 

Zephyrus

Banned
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.
so did naughty dog.

they went from platformers to 3rd person shooters.

the talent stayed there.

with mojang developers jumping out of the studio, minecraft won't be the same.


it remains to be seen though.
 
Can someone explain in short what value Mojang has that would justify such an astronomical buyout ?

What's the strategy ?

Mojang has no value to MS other than that they owned quite possibly the single most popular children's IP on the planet, Expect Mojang in 2 years to look nothing like it does now. Either they'll gut Mojang and turn it solely into a Minecraft 1 customer service support hub or they'll massively expand Mojang with their own people. Either way, I imagine the people making the next Minecraft will be mostly people who weren't involved with the original.

The cloud comment from MS, along with their desire to break even on the purchase so quickly confirms my suspicions that the next Minecraft game will basically be a MMORPG, probably of the freemium variety.
 

Bsigg12

Member
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?

Microsoft as a whole will easily make that back in a year's time. I don't think they're looking at Minecraft to actually get that back that soon. As others have said, they have a bunch of money tied up overseas that they can't bring back into the states without being destroyed by the IRS so the purchase was most likely from those funds so it's not like it was a risky investment on their part.
 
Well so far it sounds like they'll be supporting the PS4 version which was a concern of mine. Here's hoping in the interest of monetization they keep updating and releasing new games on multiple platforms.
 

Tagg9

Member
so did naughty dog.

they went from platformers to 3rd person shooters.

the talent stayed there.

with mojang developers jumping out of the studio, minecraft won't be the same.


it remains to be seen though.

Minecraft is pretty much the work of a single person (Notch). I wouldn't say anyone else at the studio had a lot of influence over the core game design.
 
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.)

Minecraft 2 is certainly happening. Now maybe it will be like you said a 2.0 update that drastically changes the game but if so you will have to pay for it.

Minecraft 1 already has massive sell through and retails for $20. You don't make back 2.5 billion continuing with that model.

Some form of "Minecraft 2" is definitely coming in my opinion.
 
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.

There's no way they are are going to go out of their way to develop a game on a rival platform. The only reason the Playstation, iOS and Android versions are staying up is because they are already released. The future of the Minecraft franchise looks to be fully Microsoft exclusive. I doubt any further work will be done on the Playstation, iOS or Android versions outside of a small patch.
 

TomShoe

Banned
I think they mean as a company they will make all that money back by then. Which MS makes a shit load of money every year so yeah.

Considering Mojang made ~$130M last year, it should probably take about a bit more than a decade, probably about 15-17 years if they follow an "R" curve and profits eventually top out around $200M.
 
So they bought Mojang, but the original crew is leaving?
Doesn't really matter in this case I'd say. It's not like they were some big driving force behind Minecraft since the game's launch. Well other than maybe in holding it down not having any big changes, or almost any changes actually, from happening.

This thread is a MS shoulda built new ip blah blah thread. The discussion wont likely get much farther than that.
I'm not sure how you came to that conclusion. There is plenty of good discussion going on here if you bother to actually see any posts instead of assuming that since it's an MS thread there's only MS haters in here. There's no need for you to defend MS where it doesn't need defending (seeing your post history too..).

so did naughty dog.

they went from platformers to 3rd person shooters.

the talent stayed there.

with mojang developers jumping out of the studio, minecraft won't be the same.


it remains to be seen though.
Very possible it won't stay similar, because since its launch the game has hardly changed at all. Change isn't always bad however.
There's plenty of things in which the game could be made into better. At the moment mods do do that, but a lot of the stuff could be in the game itself.
 
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

I'm guessing Minecraft 2 gets announced in the next 9 months. Maybe a feature film and cartoon series.
 


i-have-no-idea-what-im-doing-dog.jpg


This has got to be coming from dumb ass nr1 Yusuf Medhi.
 
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.

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.
 

Omnipunctual Godot

Gold Member
As long as the Vita version is still coming, I'm perfectly okay with this. I may jump on the PS3+Vita->PS4 upgrade path.

Is there a NeoGAF community for the console versions of Minecraft? I'd like to buy it, but I don't know anyone else who has it.
 

forrest

formerly nacire
It’s not about the money. It’s about my sanity.

yeahright...hqqzm.gif


Seriously though, I can only imagine what kind of rollercoaster Minecraft has been for Notch. Hopefully he's happy and hopefully Minecraft can continue to be a great experience for tons of people.
 

Liha

Banned
I'm afraid that the most employees will resign within the next two years and I hope that many of them get a bonus payment.

Can we expect a Steam version?
 

Krilekk

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

What's the strategy ?

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.
 

Dega

Eeny Meenie Penis
There's no way they can break even in a year unless they have some huge plans.

Again, the expect to break even as a company. Not have the Minecraft IP alone make all that money back in a year. MS makes billions each year so yeah they will.
 

NervousXtian

Thought Emoji Movie was good. Take that as you will.
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.

...or how bout the other option:

This is a very unique opportunity to by one of the biggest cross-over brands in gaming. It doesn't need to fit any of the other strategies.. it's just a great opportunity to buy a brand that prints money and has cross-over appeal.

This is bigger and different than a standard studio acquisition.

so did naughty dog.

they went from platformers to 3rd person shooters.

the talent stayed there.

with mojang developers jumping out of the studio, minecraft won't be the same.


it remains to be seen though.

ND was better at seeing the writing on the wall. Rare isn't the only studio who found the transition in the 2000's hard... look at all the studios that died. If MS didn't fund them.. Rare would have probably been gone by now.

Minecraft is pretty much the work of a single person (Notch). I wouldn't say anyone else at the studio had a lot of influence over the core game design.

Notch hasn't really had anything to do with day-to-day Minecraft in awhile.
 
Microsoft as a whole will easily make that back in a year's time. I don't they're looking at Minecraft to actually get that back that soon. As others have said, they have a bunch of money tied up overseas that they can't bring back into the states without being destroyed by the IRS so the purchase was most likely from those funds so it's not like it was a risky investment on their part.

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.
 
Well, I don't know what to be excited about honestly, the fact that I'm not into Minecraft that much or the fact that whenever MS buys a company it has a chance of going to shit so I guess i'll just wait and see but damn, 2.5B is too much for a company that made one game only. Especially when it already peaked!

JGyYlqa.gif
 

DopeyFish

Not bitter, just unsweetened
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.

Yeah, mojang works slowly in this instance

MS will port this thing to everything they can.

Windows phones, Wii-U, WinRT, Steam.

Then followed by Minecraft 2 on all platforms.
 

Snowdrift

Member
The value in this deal is locking players into Xbox/Microsoft accounts within Minecraft. The new CEO is a services guy and is much more willing to embrace competing platforms. I'm guessing before the end of FY2015 we will see some sort of XBL account integration within Minecraft. Xbox Live is going to become a cross platform social network of sorts IMO.
 

Cornbread78

Member
This was the official word:
What about the other editions of Minecraft? Will they stop being developed?There’s no reason for the development, sales, and support of the PC/Mac, Xbox 360, Xbox One, PS3, PS4, Vita, iOS, and Android versions of Minecraft to stop. Of course, Microsoft can’t make decisions for other companies or predict the choices that they might make in the future.

- The bolded is the important part of that statment. Basically, they are saying, yeah, we will support what's out there, but it's up to the other companies if they want to pay up or abide by our new rules and regulations of the game; it's their "choice"...



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.

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.


...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.

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 will continue to support it, but there will be a cost, a very high cost. Thsi way, if Sony cannot continue to pay the fees, they can say it's Sony's fault. It's a win/win for MS as they can say we were being the nice guy and Sony just didn't want to help their customers get the add-ons or get the game fixed. MS is in complete control of it andeverything around it now. Sony and Apple especially are going to be payign through the teeth to keep the support there, but once it breaks, it will probably stay broken unless they pay up big time.
 

hoos30

Member
While I thinks it's a smart move of Microsoft to continue support for all platforms, seeing they get the most money out of this that way, (and I can get Vita version! :D)
I can't help but wonder what Microsoft will get out of this... I suppose just more money in the long term? I guess this isn't a move to increase the appeal of Xbox/MS Platforms, though I think I can see them doing something special for Xbox versions...even if it's only releasing xbox versions first. I hope this move means the console versions get closer to the PC version anyway in terms of updates.

Phil gets to have a diabolical laugh as kids sign into their Xbox Live accounts on their PS4s...
 
Notch stopped caring about Minecraft the second it started making serious money. If this means competent developers get a chance to make a sequel then good.
 

Sinfamy

Member
I can already see Minecraft 2.

$59.99

DirectX, no procedural generation, DLC maps, purchasable skins using Minecoins purchased with real money.
 

Xpliskin

Member
Thanks to everyone who answered, I believe it's a questionable choice. But MS has always bet on the marathon aspect in this market.
 
I'll be honest when I originally heard plans for this deal I thought it was insane and a horrible purchase for MS.

After looking more at the numbers though I really think this could be a great financial decision for MS. Now that doesn't mean everything is sugar and rainbows. They have to execute this thing correctly and with insane expectations and a much beloved brand that will be difficult. But if they manage to pull it off the return on investment could be huge.
 
Just imagine if Microsoft were to push Sony into making a Sony themed Vita to bundle with Minecraft......

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.
 
Top Bottom