WSJ: ''Mojang to be bought by Microsoft'

So this is not a move to help the X1 then?

Even if the second minecraft is the one that is exclusive, how long would that release from now? A year or two? The PS4 will be far, far ahead of the X1 by then (going by the current sales) for any of that to matter.

This isn't about exclusives. This isnt really even about console gaming entirely. This will be about growing it further which will mean on multiple platforms. An exclusivity is meaningless when the install base would cut the profits right down anyway due to the miniscule player base. They apparently also plan to licence it more for toys movies etc. Personally I think this plays into what nadella seems to already be doing at Microsoft - associating Microsoft with goods and services that are not always platform bound. No doubt they will fully support their own platforms and then some, but Microsoft intends to go mobile and cloud and I'd have a guess that Minecraft as gigantic as it is, may just end up being a part of that. It is something rare in that it appeals to so many people rather than typical console gaming normally does.
 
...it's Minecraft. Selling plush toys off the back of it doesn't suddenly make it bigger than GTA.

Isn't it already bigger than GTA? It sold more and is more of a cultural phenomenom than GTA ever was. The only place where it could loose is revenues, as profits are also propably on Minecraft side.
 
Isn't it already bigger than GTA? It sold more and is more of a cultural phenomenom than GTA ever was. The only place where it could loose is revenues, as profits are also propably on Minecraft side.

35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.
 
If it is indeed being bought with foreign money that MS don't want to bring into the US for fear of paying massive corporate tax on it then it could be seen as being 'free money'.

I suppose the 'everyman' equivalent would be finding two quid in the street and deciding to spend it on something frivolous.
Microsoft does have like $92 Billion in foreign money so it wouldn't surprise me if that's the case.
 
Yeah, this is a little weird. Minecraft's bubble has burst, it's peaked in popularity. I don't know what Microsoft hope to achieve from paying this much for the company.
 
35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.

35 mln sales at $30, because that's at most how much Take2 got from each copy. Also...GTA costed like 200 mln dollars to make. while I would be very surprised if Minecraft costs even reach 10 mln. From business perspective Minecraft seems a lot better investment
 
Seems like such a stupid thing to do for MS but im all for it if it finally means that Mojang will be developing faster than a slowpoke.
 
35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.

Then again one is made for adults and played by a mix of adults and kids.. The other is made for ... well I'm not sure if it really had a target demographic to begin with but it is loved and used by many of all ages. More importantly, the connotations behind Minecraft are seen much more favourably than GTA, with versions of Minecraft even used in school teaching. As far as image and branding go, that is the one most likely to be grown and shaped to suit Microsoft's interests. If console are all they were interested in, the obviously GTA is pretty good. This really is not focusing on consoles, in fact focus will likely be else where to grow it as a brand if licencing and growth of the player base is going to be their game as bloomberg indicate. More notoriety and then more games, but everywhere, not just Xbox and not just consoles
 
Yeah, this is a little weird. Minecraft's bubble has burst, it's peaked in popularity. I don't know what Microsoft hope to achieve from paying this much for the company.

Except Mojang hasn't peaked? They've increased their revenue every year since they were founded, and there are plenty of indications that the same is the case for 2014 so far.
wsjchartoftheweek-r471x.jpg
 
"Minecraft: Nuts & Bolts" incoming.

Which would make a lot of sense, actually.

Brilliant. I'd like to see it, if only for the spectacle. If its true that notch intends to leave I think that's pretty awesome actually. Minecraft can do its own thing via ms, and notch can go and hopefully make something else and start fresh
 
35 mln sales at $30, because that's at most how much Take2 got from each copy. Also...GTA costed like 200 mln dollars to make. while I would be very surprised if Minecraft costs even reach 10 mln. From business perspective Minecraft seems a lot better investment

Not really, GTA has proved itself as a franchise that has continued to grow for over 15 years. Minecraft is still just a one hit wonder. Would anyone pay the same for the Wii Sports license now? No.
 
35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.

35 million x $30 (as that's what the publisher actually gets from retail) = 1 billion revenue. Cost was 250 million for development and marketing, so that's 750 million. Over a five year span that's 150 million a year.

Minecraft made 200 million profit last year.
 
&#8220;Somehow, I felt that Minecraft was maybe my chance to create a Valve, rather than work at Valve,&#8221; Notch

Well getting bought out for billions probably is closer to a Valve ballpark than 'Valve employee' territory.

I agree, though, that this didn't seem to be something notch was interested in doing from the start, that he did seem to have different plans to build up and out his own game company for the long run rather than a quick exit.

However I've had the creeping impression that he's been more and more disillusioned with how things were going - creatively - but maybe that's an incorrect perception. After 0x10c's failure to get off the ground, he's seemingly cloistered himself off into obscure and fairly random tinkering that seems to have little to do with any commercial ambitions. He's been distant from Minecraft for ages. And as others have noted, things have changed personally for him too.

Maybe he's just sick of it all at this stage?
 
35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.

Minecraft is $30, so the difference isn't that big.

The server business is massive. I can't find any raw numbers, but those 10s of millions of players pay for a lot of server time. And then there's microtransactions on top, which Mojang have made noises about stamping out, but very little enforcement.

Minecraft already makes much more than just sales, and can be pumped for even more.
 
35m sales at $60 or 55m, with the majority probably being <$10? I know which one I'd pick.

But the 35m sales at $60 had a gargantuous investment in development time and marketing. The 55m at $10 were much less risky. And are growing more or less steadily. And the development model of Minecraft was the poster child of todays early access, alpha version sale business models. Having a steady stream of money going in since the early stages of development is much more financial enticing than betting all-in before seeing the river and praying that the croupier deals an ace, as is the AAA business model.
 
Not really, GTA has proved itself as a franchise that has continued to grow for over 15 years. Minecraft is still just a one hit wonder. Would anyone pay the same for the Wii Sports license now? No.

Nah. GTA comes out every 4 years, enjoys a litle time in the sun and then dissapears completely. Minecraft is constantly evolving and gaining popularity, keeping people in the game for years. What's more, nobody has truly recreated Minecraft's success before, while open world games are dime and dozen.

Now, I don't think it's worth 2 billion, just that it's worth more for MS than GTA is
 
I said it a while ago when people were acting like idiots and buying into all the chest puffing up and shit talking Notch did in regards to MS; the guy is full of shit. People didn't listen and still championed him. Now with the built up profile the dude is selling his company to a corporation that supposedly represents everything he is against in the development world. And the funniest part is that he reached out to them.
 
The valuation is surprising, but consider that Microsoft reportedly has $76billion in cash overseas that are invested in very low yielding securities. Bringing the cash back to the states would involve taxes on their overseas profits. From an opportunity cost perspective, the deal makes a lot of sense. The same rational was used in the Skype and Nokia purchases.

Now I understand why Microsoft wants to spend their money. What I still don't understand is why buy Mojang?

Maybe if MS was working on making an operating system for virtual reality systems and they wanted to secure software that has become so ubiquitous exclusive to their OS it could make sense.
 
If it comes with a Minecraft 2 announcement it could look like a good idea.

I hope they don't turn Mojang into 'the Minecraft studio' alongside Turn 10 'the Forza studio', 343i 'the Halo studio', Lionhead 'the Fable studio', and Rare 'the hopelessly mismanaged studio'.
 
Does Mojang have any notable / experienced staff other then Notch?

I mean clearly this is a "buy Minecraft and get a studio as small extra" deal but I dont know much about the makeup of that team.

It would almost make sense to buy 4J Studios as well and have them just continue making the version of the game.
 
I haven't followed him too closely but I think that's a fair guess gofreak. As many say he has an impossible act to follow up. Perhaps he just wants to stay away from the financial side of things and let the CFO handle it.
 
Does Mojang have any notable / experienced staff other then Notch?

I mean clearly this is a "buy Minecraft and get a studio as small extra" deal but I dont know much about the makeup of that team.

It would almost make sense to buy 4J Studios as well and have them just continue making the version of the game.

They are buying it for Minecraft. Not even Notch himself is anything special as a dev. He didn't even come up with Minecraft. That's why the dude hasn't developed anything else since. MS isn't getting a Miyamoto in the deal.
 
35 million x $30 (as that's what the publisher actually gets from retail) = 1 billion revenue. Cost was 250 million for development and marketing, so that's 750 million. Over a five year span that's 150 million a year.

Minecraft made 200 million profit last year.

While Minecraft undoubtedly has a much healthier expenditure-to-profit ratio than Rockstar or Take Two (and T2 probably has about 50x as many employees), buying Take Two would be a much wiser long-term investment because you're not just getting GTA in the deal. There's RDR, Bully, Max Payne, BioShock, XCOM, Spec Ops, Civilization, as well as publisher deals on Borderlands and Battleborn (whether being the publisher determines what console you can release on I don't know). It would cost a lot more money to keep T2 afloat, but you get a shit load more for your money and a range of proven franchises.
 
Except Mojang hasn't peaked? They've increased their revenue every year since they were founded, and there are plenty of indications that the same is the case for 2014 so far.
wsjchartoftheweek-r471x.jpg
2014 likely peak because of more retail release but it would be just too late for MS have this profit.
 
I just hope whatever MS plans with the Minecraft IP that it still gets a PC release since its the platform that started everything. I supported Minecraft since the alpha phase.
 
Does Mojang have any notable / experienced staff other then Notch?

I mean clearly this is a "buy Minecraft and get a studio as small extra" deal but I dont know much about the makeup of that team.

It would almost make sense to buy 4J Studios as well and have them just continue making the version of the game.

It is notable that Mojang has a fair few talented and dedicated developers, yes.
 
I wonder what this would mean in terms of support for minecraft on other (non pc/microsoft) platforms?

Definitely continuing. I'd also be certain that any sequels would also be available on as many platforms as possible. This thread is filled with people only concerned with console wars and their perceived superiority vs x platform that most of the talk is exclusivity or "trying to beat Sony" when this doesn't make sense towards the game and how it continues to grow in the first place.

Exclusivity to PC and Xbox etc would be pointless, they cap the player base and very few would hope over for a single title. It is much more likely that they will try to continue and expand the growth of its popularity. Blomberg indicate this interest along with increased licencing with toys movies etc. As far as games go I'd expect more content and games but definitely on as many platforms as possible. Personally I think this fits into nadella's vision of Microsoft's future in general and movement of having their products and services on more and more platforms including the competition
 
- Bloomberg: Microsoft Said Near $2 Billion Deal for Minecraft Maker
The deal came together after Mojang founder Markus Persson reached out to Microsoft a few months ago, based on a positive working relationship on Minecraft for Xbox, said the person familiar with Microsoft.

The two companies quickly agreed on a framework and approximate price and have been working out the details since, the person said. Persson will help out with the transition, though he is unlikely to remain beyond that, according to the person.
 
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