Microsoft to buy minecraft for 2 billion.

[Jodell88]

Across all platforms that minecraft is on, it has sold about 54 million copies.

 

[Jaepheth]

Across all platforms that minecraft is on, it has sold about 54 million copies.

Exactly. Why would you pay top dollar for used fireworks?

I hope they have a game plan; probably developing DLC to sell to the existing customers.

 

[bradley]

I'd like to say buying Minecraft is for data mining itself, but Google and Facebook already have that market cornered. If it's to make Microsoft into a game console company, they'd still be behind Nintendo and Sony. If it's for the free advertisement, I doubt average gamers really know Notch/Mojang or give them much thought.

Anyone giving Notch much thought probably considers him a sellout and a hypocrite. Too bad John Carmack waited so long to sellout, he's way more of a genius than Notch will ever be.

The Minecraft game itself is a direct copy of Infinitiminer. BTW, work on Infinitiminer was stopped due to leaked source code, coincidentally at the same time Notch began production on Minecraft.

Minecraft - The Infiniminer Ripoff - Part 1
https://www.youtube.com/watch?v=N__BhXhbSUs

Minecraft - The Infiniminer Ripoff - Part 2
https://www.youtube.com/watch?v=vedI08OBPW0

 

[cubby1223]

Across all platforms that minecraft is on, it has sold about 54 million copies.

In other words it is highly likely the userbase is saturated and not going to increase. So the question is, how does Microsoft use this userbase and the company assets to make back the $2.5b?

 

[boomhower]

In other words it is highly likely the userbase is saturated and not going to increase. So the question is, how does Microsoft use this userbase and the company assets to make back the $2.5b?

Pretty much my train of thought as well. It's made a ton of money but I think most of that money has already been spent. I'm not seeing $2.5b in DLC being sold.

 

[Albatross]

I`d like to see a Notch lead gaming studio,with that money it becomes an option, assuming he hasn`t decided to retire permanently.Also a polished,more feature rich and maybe faster minecraft written in C# might become reality.

 

[Jodell88]

I`d like to see a Notch lead gaming studio,with that money it becomes an option, assuming he hasn`t decided to retire permanently.Also a polished,more feature rich and maybe faster minecraft written in C# might become reality.

I’m leaving Mojang


September 15th, 2014
I don’t see myself as a real game developer. I make games because it’s fun, and because I love games and I love to program, but I don’t make games with the intention of them becoming huge hits, and I don’t try to change the world. Minecraft certainly became a huge hit, and people are telling me it’s changed games. I never meant for it to do either. It’s certainly flattering, and to gradually get thrust into some kind of public spotlight is interesting.

A relatively long time ago, I decided to step down from Minecraft development. Jens was the perfect person to take over leading it, and I wanted to try to do new things. At first, I failed by trying to make something big again, but since I decided to just stick to small prototypes and interesting challenges, I’ve had so much fun with work. I wasn’t exactly sure how I fit into Mojang where people did actual work, but since people said I was important for the culture, I stayed.

I was at home with a bad cold a couple of weeks ago when the internet exploded with hate against me over some kind of EULA situation that I had nothing to do with. I was confused. I didn’t understand. I tweeted this in frustration. Later on, I watched the This is Phil Fish video on YouTube and started to realize I didn’t have the connection to my fans I thought I had. I’ve become a symbol. I don’t want to be a symbol, responsible for something huge that I don’t understand, that I don’t want to work on, that keeps coming back to me. I’m not an entrepreneur. I’m not a CEO. I’m a nerdy computer programmer who likes to have opinions on Twitter.

As soon as this deal is finalized, I will leave Mojang and go back to doing Ludum Dares and small web experiments. If I ever accidentally make something that seems to gain traction, I’ll probably abandon it immediately.
Considering the public image of me already is a bit skewed, I don’t expect to get away from negative comments by doing this, but at least now I won’t feel a responsibility to read them.

I’m aware this goes against a lot of what I’ve said in public. I have no good response to that. I’m also aware a lot of you were using me as a symbol of some perceived struggle. I’m not. I’m a person, and I’m right there struggling with you.

I love you. All of you. Thank you for turning Minecraft into what it has become, but there are too many of you, and I can’t be responsible for something this big. In one sense, it belongs to Microsoft now. In a much bigger sense, it’s belonged to all of you for a long time, and that will never change.

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

http://notch.net/2014/09/im-leaving-mojang/

 

[Albatross]

http://notch.net/2014/09/im-leaving-mojang/

Take the money and run!

 

[Train]

Buying after the South Park Minecraft episode is way too late, IMO

 

[bradley]

Here's ZDNet's take....

Microsoft buys Mojang, Minecraft: Five reasons it makes strategic sense
http://www.zdnet.com/microsoft-buys...-reasons-it-makes-strategic-sense-7000033640/

For context, it's worth noting that Microsoft spent $8.5 billion for Skype and $6.3 billion for aQuantive only to write $6.2 billion off a few years later.

There are a few wrinkles. The reaction of the Minecraft community may be a wild card and Mojang has built on Amazon Web Services. Rest asured Azure will be in the picture later.



Read more: With Mojang, Microsoft buys its fourth non-U.S.-based company in 2014
FBR analyst Daniel Ives said in a research note, "We believe the potential acquisition of the ubiquitous Minecraft game (almost 54 million copies sold), would strategically make sense as the company looks for ways to drive users toward its nascent mobile hardware business, where it can leverage and cross-sell a wide range of its higher-margin software (e.g., Office 365, Windows)."



Here's why the deal, which will be panned by some, makes strategic sense:

1) Mojang gives Microsoft an asset and community that could cultivate a younger demographic. If you've ever seen an elementary school kid go into a Minecraft coma you know the power that Mojang has. To younger customers, Microsoft's core brand is really Xbox. If Microsoft is going to have an installed base to up sell as these customers move to smartphones to tablets to PCs to enterprise applications and cloud Minecraft is a good place to start.

2) The future of Microsoft revolves around mobile and cross-platform applications. Office is about iOS and Android as much as it is Windows Phone and Windows. Microsoft's enterprise applications may have some perks for Windows, but also need to play across all mobile platforms. Skype is cross platform too. Minecraft gives Microsoft a property that plays well on the desktop, iOS and Android. And since Minecraft will be owned by Microsoft at least there will be a Windows Phone version too.

3) Minecraft could be the next Lego-like franchise. It won't be hard to find a group of people that'll say that Minecraft has peaked and Microsoft is paying too much for a declining asset. However, Minecraft could be the digital equivalent of Legos, which spark the imagination and have become an introductory course to robotics and engineering.

4) Mojang would make an Xbox spin-off more feasible should Microsoft go that route. Yes, we know that Microsoft has noted that it is keeping Xbox, but Minecraft would give the gaming unit another key title to go along with games like Halo. The addition of Mojang makes Xbox stronger whether Microsoft decides to keep the unit or spin it off to focus on the enterprise and cloud.

5) Microsoft gets to use its overseas cash pile. Based on current tax laws, Microsoft's overseas cash can't be brought back into the U.S. without a hefty hit. As a result, U.S. companies are increasingly buying international assets. Microsoft's purchase of Mojang is its fourth international company acquisition in 2014. Most of the acquisitions were of the plug-in variety to add features and or services to existing product lines.

 

[darkewaffle]

#5 is interesting. In that sense, they're still paying a discounted price if that same 2.5B USD would have just been cut down by X% if they were to bring it back to the US.

 

[AznAnarchy99]

#5 is interesting. In that sense, they're still paying a discounted price if that same 2.5B USD would have just been cut down by X% if they were to bring it back to the US.

What country is Mojang from?

 

[canestim]

#5 is interesting. In that sense, they're still paying a discounted price if that same 2.5B USD would have just been cut down by X% if they were to bring it back to the US.

#5 does kind of makes sense because $2.5 billion seems like way too much. Dude made out like a bandit!

 

[Jodell88]

What country is Mojang from?

Sweden

 

[TheSlamma]

It's moves like this that will slowly put that company under pressure to have to perform more layoffs.. use your money on smart things, not on companies that have done and made all the money they will ever make.

and I don't buy the paying taxes crap, paying taxes would still be cheaper and who knows it might even come back to help them in one of their corporate bailouts when the economy ebb's

 

[bradley]

What country is Mojang from?

Sweden, where they talk a very good socialist game. But it always comes down to money.

I'll assume that Markus signed a non-compete agreement with Microsoft and will be out of the game development world for an indefinite period... perhaps one of the reasons why he's refusing interviews. There are some also suggesting that Markus himself initiated this deal with Microsoft.

http://www.gamesindustry.biz/articles/2014-09-09-microsoft-to-buy-mojang-report

 

[Train]

It's moves like this that will slowly put that company under pressure to have to perform more layoffs.. use your money on smart things, not on companies that have done and made all the money they will ever make.

First I think you need to put into perspective exactly how much cash MS has just sitting around doing nothing.

They could throw away 10 Mojang's and not affect their bottom line in the slightest.

 

[TheSlamma]

First I think you need to put into perspective exactly how much cash MS has just sitting around doing nothing.

They could throw away 10 Mojang's and not affect their bottom line in the slightest.

Prolly why I said slowly.. and that 2.5B is 10% of their last quarterly earnings, so multiply that by your 10 statement and what would be 100%.

You keep buying out companies that amount to just closing up their doors a few years later and people will start to not invest anymore. Minecraft while it has an amazing following now will be on replaced by the next thing in the next few years.

 

[Shlong]

Whats strange is Microsoft said they expect to recoup their investment by the end of 2015. I don't really known anything about money, but if Mojang can generate 2.5 billion in a year, why would they sell for that price? Whats stranger is in the same articles I saw it was stated that Mojang made $100 mil in profit last year. How to do you go from that to 2.5 bil?

Minecraft has a large user install base so that will probably be the biggest reason for the valuation. At least they're profitable, apps like snapchat have a valuation of $10 Billion (albeit with a very large user base) but they have no business model and don't make any money.

 

[Ns1]

#5 makes sense.

 

[TheSlamma]

At least they're profitable, apps like snapchat have a valuation of $10 Billion (albeit with a very large user base) but they have no business model and don't make any money.

I'll have the popcorn ready for when that BS virtual evaluation bubble pops too. I can't wait too, it's been too long since our last bullsh!t scheme blew up (subprime mortgages)

 

[Shlong]

I'll have the popcorn ready for when that BS virtual evaluation bubble pops too. I can't wait too, it's been too long since our last bullsh!t scheme blew up (subprime mortgages)

A lot of these companies aren't going public with a big IPO instead they go the exit route (being bought by a bigger company). In the 90's though, every company left and right was trying to go public. If a bubble is going to burst, it will be by Venture Capitalists.

 

[OverVolt]

Make sure you get a hard copy and an off the grid 360.... lol. New dlc $19.99! Fixes what we broke with auto updates and adds a new type of flower!

 

[StinkyPinky]

I think you guys are overlooking the fact they didn't buy the game, but rather the intellectual property.

In other words, in two years time they can release Minecraft 2 with a ton of new features (and not using Java) and sell it only on XBox, Windows, and Windows Phone. It's about getting diehard fans to shift to MS based platforms.

 

[Hugo Drax]

They are putting 2.5 billion at high risk for this acquisition when it returns only 4 percent a year on invested capital. Assuming net profit stays the same and does not shrink.

The risk reward is really bad. This was another shitty Microsoft purchase that will end up being written off.