Microsoft to Buy Mojang? by Pete Dodd


The facts as we know them: 

According to this article by the Wall Street Journal, Microsoft are working on a deal to buy Mojang for around two billion dollars.

Conjecture:

This seems like an odd move considering that Minecraft is out on every platform ever already. Also, the studio is not exactly prolific. While Minecraft has been a world-wide juggernaut, Notch himself has struggled in working on follow-ups and I can't remember the last time I even heard someone mention Scrolls. If this story is true I think a more apt title would be "Microsoft buy Minecraft IP for Two Billion Dollars" as there doesn't really seem to be any other reason to buy the company.

While this could be a coup for Microsoft, there is also a chance it will backfire if consumers can't get future Minecraft's on their platform of choice. The fallout from the Tomb Raider deal was surprising to both MS and Square Enix. Many gamers are getting sick of the buying of exclusives. If Minecraft 2 is available on MS consoles, PC, and Windows Phone only; there may be an awful lot of upset people. Microsoft would also make enough money to not really care.

The deal in general doesn't make sense to me... but, weirder stuff has happened. I never thought I'd see ID sell to a larger publisher...




Comments:

#1Anonymous
MS is doing this just for the IP. That way they can roll out Minecraft 2 as an Xbox One/Windows exclusive.
#2
BlackHawk5132
This would be completely fucked. I run a windows PC and have every console but this anti consumer crap needs to end.
#3TheNelsconey
Lol I still doubt this will help sell consoles
#4Anonymous
Wow! Would be HUGE! Pull the trigger MS. Minecraft 2 on PC/X1/360 only would be enormous for them.
#5dasmule007
Never got into the Minecraft craze on any system...is it that good? Never played it, but noticed my friend's kids love and daily play Minecraft on their 360's. Am I missing something, or is this a game/fad for younger players?
#6
BlackHawk5132
Is there a need for Minecraft 2. What game mechanics can they change to make it worth another purchase?
#7
Pete Dodd
Yeah I kinda feel like Everquest: Landmark is Minecraft 2.
#8Anonymous
Is there a need for Minecraft 2. What game mechanics can they change to make it worth another purchase?
Yes, I think there is. There's lot's of stuff they could improve over the first. And maybe with the cloud or whatever, they can make part 2 that much closer to the PC version and we can either rent, or have servers so that when we start a World up, the person who makes the World doesn't have to be on to play so everyone else can play. Maybe part 2 will have a buy a server mode or something.. kinda like BF does. And then we could make Worlds and everyone can play even if the original World creator isn't playing online. There's so many possibilities. People are thinking small on this. Who knows what they could do. Minecraft the Kart Racing game... Minecraft Legos version... Minecraft Project Spark edition. Not to mention Master Chief MC edition and all the other crap they try. I don't know... I think this would be smart for them. Of course the opposite side doesn't think that... but hey. These companies are in it to win it, and they have to make moves. If I'm a shareholder, I want MC only on the X1 and PC.
dasmule007 wrote:
Never got into the Minecraft craze on any system...is it that good? Never played it, but noticed my friend's kids love and daily play Minecraft on their 360's. Am I missing something, or is this a game/fad for younger players?
It's new school Legos if you ask me. I think it's pretty fun playing survival mode. I actually get a bit of anxiety playing by myself in a mine way down below and it's all dark and crap. I've jumped a couple times just sitting there mining and out of nowhere a skeleton hits me with an arrow... actually makes me jump.. lol.
#9
f.almeida
Any consumer rage coming from such a deal will be very much justified.
#10dasmule007
Consider how many young kids love Minecraft. Now consider a ton of exclusive content for that whale of an IP that starts rolling out for the XB1 version. Including but not limited to Halo packs, Rare packs, Fable packs, etc. And that's just first party deals going forward. The fact is, while market saturation for the core game is there, there is a huge existing playerbase on last gen consoles that could be swayed by exclusive versions of this game. Think of it like Lego sets. Could you imagine if you could only buy new Lego sets at one specific retailer? Now imagine all of those kids who have been playing Minecraft that are trying to convince their parents to get them a console where only one console has the definitive version of Minecraft. Seriously, kids fucking love Minecraft. That's the only line of reason I see making sense out of all of this.
I LOVED Lego's as a kid, and after reading more about this...maybe a very smart move to capture and attract a young audience. Agree, never played Minecraft, but every kid of my friends/coworkers is absolutely hooked on this game, mainly on X360. The XB1 and PS4 seem to me more adult oriented in general the last year, and this may be a brilliant way to get younger gamers to press their parents to upgrade to next gen on XB1. BUT, will parents shell out $399 this holiday just so their kids can get upgraded Minecraft experience? Don't think so...consoles need to get to $250-$199 price for parents to EVEN consider purchasing next gen yet.
#11
Pete Dodd
There's definitely an upside for MS owning Minecraft, I don't disagree with that, midnighter. The real question is... is there a TWO BILLION DOLLAR upside? Mojang's revenues last year were $127 million, and that's across every system/phone ever. I would much rather see Microsoft take that two billion and create multiple studios, doing multiple xbox one exclusive projects, in many different genres. Diversification!
#12TheNelsconey
Is this kind of like when Google was going to buy Twitch? Please Amazon. Buy this instead.
#13TheNelsconey
[quote="Pete Dodd"]There's definitely an upside for MS owning Minecraft, I don't disagree with that, midnighter. The real question is... is there a TWO BILLION DOLLAR upside? Mojang's revenues last year were $127 million, and that's across every system/phone ever. I would much rather see Microsoft take that two billion and create multiple studios, doing multiple xbox one exclusive projects, in many different genres. Diversification![/quote] "Former Sun Microsystems chief executive Scott McNealy occasionally remarked that Microsoft never produced technology except by buying it: "R&D [research and development] and M&A [mergers and acquisitions] are the same thing over there."
#14
Rain City Gamer
The real question is, Will the Xbone be able to handle Minecraft 2 at 1080p / 60fps?!
#15dasmule007
Pete Dodd wrote:
There's definitely an upside for MS owning Minecraft, I don't disagree with that, midnighter. The real question is... is there a TWO BILLION DOLLAR upside? Mojang's revenues last year were $127 million, and that's across every system/phone ever. I would much rather see Microsoft take that two billion and create multiple studios, doing multiple xbox one exclusive projects, in many different genres. Diversification!
Soooo agree Pete...I feel like MS is just throwing money here and there, with no overall strategy to be honest...except to spend billions in the hope they'll somehow catch Sony. Following MS all my life...and they love throwing money around...but they usually had a concrete plan, strategy, and goal to eliminate their competition in the past. They seem to be spending the money, but that's it. Their ideas seem to be spread everywhere, with no focus in any single category.
#16Anonymous
Pete Dodd wrote:
There's definitely an upside for MS owning Minecraft, I don't disagree with that, midnighter. The real question is... is there a TWO BILLION DOLLAR upside? Mojang's revenues last year were $127 million, and that's across every system/phone ever. I would much rather see Microsoft take that two billion and create multiple studios, doing multiple xbox one exclusive projects, in many different genres. Diversification!
It's not my money. I couldn't care less on how much they spend on it. Nobody knows what new IP's are going to do. If the game will be good, suck or whatnot. But I'd imagine stats show that new IP's don't rock as much as a set in stone ip. 2 billion is lot's of money. Are the Clippers worth that much? I doubt it. They never been past the second round of the playoffs or won a Championship.. yet they still sold for that much. I understand that lot's of people on the netz that don't like MS/XB1 and won't ever buy or don't want to buy an X1 will be mad about this and say it's stupid and that they can buy all these other studios and whatnot, but this is a proven franchise that is HUGE right now. Probably the biggest game out there overall in terms of what's going on. I'd say even bigger than COD overall.
#17
Pete Dodd
The jump in logic I'm not following here, midnighter, is if the studio makes less than 150mil a year on every platform ever, how is it going to make more by limiting itself to a single platform? I get your idea of more games. Minecraft Kart Racers and whatnot. But those games aren't going to do Minecraft numbers. Minecraft has also been around for a while. Other than Nintendo who can keep a franchise going for long without total burnout? If Microsoft go all activision with Minecraft, making tons of different versions yearly, they will tony hawk/guitar hero/rock band/etc the shit out of the franchise. The also have nothing in the pipeline. Scrolls was DOA and is even deader since Hearthstone came out. Notch gave up on his space game and is currently "taking a break." There is no "Minecraft 2" to speak of at this point.
#18AnthonyUK
I'd say even bigger than COD overall.
[img:2ouco5xf]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:2ouco5xf] http://www.xboxachievements.com/news/ne ... ision.html
#19dasmule007
AnthonyUK wrote:
I'd say even bigger than COD overall.
[img:2mnqhpcs]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:2mnqhpcs] http://www.xboxachievements.com/news/ne ... ision.html
Trust me, have no info/experience with Minecraft...but I highly doubt Minecraft on launch day can generate $500 million in one day like a COD or GTA game could do. Maybe I'm wrong about the interest and devotion to this franchise, but is it really comparable to say COD in regards to popularity and revenue?
#20dasmule007
dasmule007 wrote:
The XB1 and PS4 seem to me more adult oriented in general the last year, and this may be a brilliant way to get younger gamers to press their parents to upgrade to next gen on XB1.
Bingo.
dasmule007 wrote:
will parents shell out $399 this holiday just so their kids can get upgraded Minecraft experience? Don't think so...consoles need to get to $250-$199 price for parents to EVEN consider purchasing next gen yet.
Thinking about next holiday season isn't a terrible idea when we're talking about such a huge game. They're playing the long console race, it seems, instead of the holiday 2014 game. Frankly, this is way too far into the year to expect it to matter much this year.
Pete Dodd wrote:
I would much rather see Microsoft take that two billion and create multiple studios, doing multiple xbox one exclusive projects, in many different genres. Diversification!
As much as I agree with you, Pete, I don't think Microsoft is in a position to want to try and take risks with a bunch of new IPs. This may be seen as a good long play with how successful the game was, especially on XBLA. Keep people associating Minecraft with Xbox. Hook em young!
IMO, that's MS problem at this point...they're fighting last gen's battle. Instead of cutting back 1st party studios, MS should've been adding studios, w/the 2 billion Minecraft received. If they really wanted to keep one franchise alive and going w/original developer...they should've spent that 2 billion towards Bungie and Destiny title, as Xbox exclusives!
#21Anonymous
The real question is, Will the Xbone be able to handle Minecraft 2 at 1080p / 60fps?!
I gave you a like and a quoted post to tell you I'm lol'ing. :lol:
#22Anonymous
AnthonyUK wrote:
I'd say even bigger than COD overall.
[img:1auxo3gb]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:1auxo3gb] http://www.xboxachievements.com/news/ne ... ision.html
That's cool and all.. but I think Minecraft can reach more of an audience overall. COD sells to people our age and older... (you're the our age, and I'm the older.. what??!?!?! ) Minecraft sells to all. What's the rating again on Minecraft?
dasmule007 wrote:
AnthonyUK wrote:
I'd say even bigger than COD overall.
[img:1auxo3gb]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:1auxo3gb] http://www.xboxachievements.com/news/ne ... ision.html
Trust me, have no info/experience with Minecraft...but I highly doubt Minecraft on launch day can generate $500 million in one day like a COD or GTA game could do. Maybe I'm wrong about the interest and devotion to this franchise, but is it really comparable to say COD in regards to popularity and revenue?
I didn't mean in one day or one month. Just in overall. I mean hell. Original Minecraft on 360/PS3 is STILL charting on NPD numbers. It has legs. (edited.. didn't mean to make a 3 post hit in a row! took one off, put the last in this. :) )
#23dasmule007
dasmule007 wrote:
IMO, that's MS problem at this point...they're fighting last gen's battle.
Can't really blame em when you look at how many and what kind of consoles are in homes right now. ;) I see a focus on [u:1l8kdr1p]retention[/u:1l8kdr1p] from last gen as a good thing, but only if it doesn't interfere with new projects and IPs. That's what Halo: MCC is, right? It's a reminder to everyone why they may have been an Xbox gamer. Customer retention is a pretty big deal, especially when you go from a market leader last gen to moving half of the units of your competitor.
I'm a MS gamer, but if customer retention is so important...why didn't MS practice that past year? Outside of core and early adopter MS fans though, MS did nothing to retain their core audience. They needed/need Halo, Gears, Fable, or something sooner than later. Those 3 main MS franchises are absent past year...maybe Halo MCC will change that, but I doubt it unless MS pulls something out of their ass quality wise w/Halo MCC. Plus, correct me if wrong, but didn't MS also get rid of each studio that made Halo, Gears, Fable what it was??
#24dasmule007
dasmule007 wrote:
I'm a MS gamer, but if customer retention is so important...why didn't MS practice that past year? Outside of core and early adopter MS fans though, MS did nothing to retain their core audience. They needed/need Halo, Gears, Fable, or something sooner than later. Those 3 main MS franchises are absent past year...maybe Halo MCC will change that, but I doubt it unless MS pulls something out of their ass quality wise w/Halo MCC. Plus, correct me if wrong, but didn't MS also get rid of each studio that made Halo, Gears, Fable what it was??
Dude, I'm as MS-centric as you can get (sent from my Windows Phone) but I think we can all admit that Microsoft made a lot of bad decisions last year. Not to mention it would make sense to focus on the core for launch and the months following, and then work on retaining past gen consumers who haven't made the jump yet in the following years, right?
Let me rephrase that, MS has "two core" groups, but one group is way more loyal and one is 360 recent "loyal." It sounds like we're in the "first core" loyal group...like you, use a WP (just upgraded Nokia 930 to Cortana, love it!) One of my first PC games was MS Flight Simulator in 1985, and I supported MS through MS-DOS gaming till Windows. Unbiased, MS on XB1 had the better exclusives last fall across the board almost, but NONE of those exclusives came from Halo, Gears, or Fable. It truly did not matter back then how good those games were, because MS had already damaged and tainted their brand SOO BAD summer of 13, that they alienated and lost a generation of gamers w/influence and $$ as early adopters.
#25
BeanDK
2B is a lot of money for a one-hit-wonder like Mojang. But Im sure MS will find a way to milk the Minecraft brand to death. The question is, is it too late and hasn't the Minecraft polularity peaked?
#26
DrDamn
I think this move is far too late to make enough sense. They'd need to have a fantastically good idea for Minecraft 2 to even think about going there. Minecraft is the game that didn't need sequels - it's a growing game it doesn't follow the traditional sequel mould. They would be better off trying to secure or create the *next* Minecraft not milk this.
#27
DrDamn
Bit more info here ... http://mobile.bloomberg.com/news/2014-0 ... maker.html Multiple sources backing the story up. Interesting points about keeping the franchise multiplatform - I think that will only extend to mobile, obviously they can't pull PS3/PS4 support for Minecraft, but I don't see an inevitable sequel coming to Sony platforms.
#28Anonymous
This has everyone talking about MS again. Just like with TR. I feel it's been nothing but MS, MS, MS lately. And that's a good thing!
#29AnthonyUK
AnthonyUK wrote:
I'd say even bigger than COD overall.
[img:1k65cq60]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:1k65cq60] http://www.xboxachievements.com/news/ne ... ision.html
That's cool and all.. but I think Minecraft can reach more of an audience overall. COD sells to people our age and older... (you're the our age, and I'm the older.. what??!?!?! ) Minecraft sells to all. What's the rating again on Minecraft?
dasmule007 wrote:
AnthonyUK wrote:
I'd say even bigger than COD overall.
[img:1k65cq60]http://disruptmedia.co/wp-content/uploads/2014/01/mal.gif[/img:1k65cq60] http://www.xboxachievements.com/news/ne ... ision.html
Trust me, have no info/experience with Minecraft...but I highly doubt Minecraft on launch day can generate $500 million in one day like a COD or GTA game could do. Maybe I'm wrong about the interest and devotion to this franchise, but is it really comparable to say COD in regards to popularity and revenue?
I didn't mean in one day or one month. Just in overall. I mean hell. Original Minecraft on 360/PS3 is STILL charting on NPD numbers. It has legs. (edited.. didn't mean to make a 3 post hit in a row! took one off, put the last in this. :) )
Overall? no you just wrong http://www.xboxachievements.com/news/ne ... ision.html Call of Duty makes a billion dollars in revenue on day one (And that was ghosts one of the worst received games) of just about every release, and it always has long legs(At double the price point), it has Map packs and microtransactions, your probably talking a couple of billion dollars per game easily and a game is released every year. where as mojang has record revenues for a year in 2013 of $316million. http://www.gamesindustry.biz/articles/2 ... it-in-2013 So no, Call of Duty makes more revenue by lunchtime on day one every november then Minecraft does in an entire calender year. Call of duty ghosts made more revenue in day one then the last 3 years of mojang. Its a great IP no doubt, but saying its the biggest one in gaming? come on
#30Anonymous
AnthonyUK wrote:
Overall? no you just wrong http://www.xboxachievements.com/news/ne ... ision.html Call of Duty makes a billion dollars in revenue on day one (And that was ghosts one of the worst received games) of just about every release, and it always has long legs(At double the price point), it has Map packs and microtransactions, your probably talking a couple of billion dollars per game easily and a game is released every year. where as mojang has record revenues for a year in 2013 of $316million. http://www.gamesindustry.biz/articles/2 ... it-in-2013 So no, Call of Duty makes more revenue by lunchtime on day one every november then Minecraft does in an entire calender year. Call of duty ghosts made more revenue in day one then the last 3 years of mojang. Its a great IP no doubt, but saying its the biggest one in gaming? come on
Sounds great. I love COD. Good to see people defend COD like that. Good job on all the numbers. I wasn't really talking about money though. I was talking about playing the game. You know.. like on consoles... computers.. .phones... tablets... it's not a 17 or older game to buy... kids play it at school... you know.. that kind of stuff. Not actual amounts of dollars made. But I understand. Some of you guys aren't liking this move. Hey, it's MS! I do appriciate you not quoting my full thoughts on it though.. only the bigger than COD part you quote. What about this part where I don't mention nor ever did mention anything about money alone.
Probably the biggest game out there [b:3lyb6u3g]overall in terms of what's going on.[/b:3lyb6u3g] I'd say even bigger than COD overall.
Ya.. overall in terms of what's going on... ie, sold on psp, 360, ps3, pc, tab, phone, ps4, xb1. It's everywhere. COD isn't like that. Sony fans aren't going to like this move, Xbox fans are. There are no surprises there. Now maybe Notch can take his 2 bill and make another awesome game.
#31AnthonyUK
AnthonyUK wrote:
Overall? no you just wrong http://www.xboxachievements.com/news/ne ... ision.html Call of Duty makes a billion dollars in revenue on day one (And that was ghosts one of the worst received games) of just about every release, and it always has long legs(At double the price point), it has Map packs and microtransactions, your probably talking a couple of billion dollars per game easily and a game is released every year. where as mojang has record revenues for a year in 2013 of $316million. http://www.gamesindustry.biz/articles/2 ... it-in-2013 So no, Call of Duty makes more revenue by lunchtime on day one every november then Minecraft does in an entire calender year. Call of duty ghosts made more revenue in day one then the last 3 years of mojang. Its a great IP no doubt, but saying its the biggest one in gaming? come on
Sounds great. I love COD. Good to see people defend COD like that. Good job on all the numbers. I wasn't really talking about money though. I was talking about playing the game. You know.. like on consoles... computers.. .phones... tablets... it's not a 17 or older game to buy... kids play it at school... you know.. that kind of stuff. Not actual amounts of dollars made. But I understand. Some of you guys aren't liking this move. Hey, it's MS! I do appriciate you not quoting my full thoughts on it though.. only the bigger than COD part you quote. What about this part where I don't mention nor ever did mention anything about money alone.
Probably the biggest game out there [b:o07kfm4l]overall in terms of what's going on.[/b:o07kfm4l] I'd say even bigger than COD overall.
Ya.. overall in terms of what's going on... ie, sold on psp, 360, ps3, pc, tab, phone, ps4, xb1. It's everywhere. COD isn't like that. Sony fans aren't going to like this move, Xbox fans are. There are no surprises there. Now maybe Notch can take his 2 bill and make another awesome game.
I've given up getting any sort of sense out of you, you see what you want to see and facts be damned.
#32
DrDamn
Ya.. overall in terms of what's going on... ie, sold on psp, 360, ps3, pc, tab, phone, ps4, xb1. It's everywhere. COD isn't like that. Sony fans aren't going to like this move, Xbox fans are. There are no surprises there. Now maybe Notch can take his 2 bill and make another awesome game.
I have both machines and enjoy both, but I don't understand the mentality of liking a popular *existing* franchise being taken away from fans being a good thing. Timed DLC, exclusive content etc is fair. You can see it as the console manufacturer supporting a title it's fan base enjoys. I would much rather MS spend $2B on finding and supporting or creating the next Minecraft than this. Or supporting other new titles like Shangheist.
#33Anonymous
DrDamn wrote:
I have both machines and enjoy both, but I don't understand the mentality of liking a popular *existing* franchise being taken away from fans being a good thing.
What's getting taken away? I don't know what you're talking about.
AnthonyUK wrote:
I've given up getting any sort of sense out of you, you see what you want to see and facts be damned.
You assumed I was talking about money. I wasn't . [quote:1esuw3x7]Probably the biggest game out there overall in terms of what's going on. I'd say even bigger than COD overall.[/quote:1esuw3x7] Nowhere did I mention money at all in that quote and that's what you quoted me on.
#34
DrDamn
DrDamn wrote:
I have both machines and enjoy both, but I don't understand the mentality of liking a popular *existing* franchise being taken away from fans being a good thing.
What's getting taken away? I don't know what you're talking about.
There is a certain amount of assumption but the future of MC on Sony platforms is going to be very different if this goes through compared to if it doesn't. I don't think they will pull existing versions, but support will likely be lessened and the inevitable MC2 will likely not be on Sony platforms. Mentioned it in the forum thread that the possible upside is that [b:28dd9oyn]if[/b:28dd9oyn] Mojang/Notch were too happy/comfortable with where MC was and they didn't have the appetite for MC2 and what that would entail. A MS purchase would almost certainly push that through and therefore that's a potential big gain from the purchase. I.e. it wouldn't have happened without the purchase anyway.
#35
CantSeeMyFeet
With all of the changes that Microsoft has made lately I can't help but feel this is a mistake. The numbers for what Mojang has made is not even close to worth 2 billion. I realize they are trying to make the Xbox One a more attractive platform, however I don't see this paying off in the end unless they have some genius Idea for MC2. As others have said I would rather that money be spent on maybe you know.... bringing back Rare to its former glory or many of the OG Xbox titles. /rant
#36
Pete Dodd
I honestly think this move has far more to do with Windows phone and Surface than it does for the xbox division.
#37
Pete Dodd
The merchandising is part of Mojang's financials and isn't nearly as big as people think it is. http://www.gamespot.com/articles/minecr ... 0-6418397/ They made 326 million, 128 million of that was profit. 90% was minecraft sales. 10% was scrolls and minecraft merchandising. Also, that article you linked, christian, doesn't say it will make $2.5b next year. It will break even on the gaap scale, which is like 25 million dollars.

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