WSJ is reporting that Microsoft may be close to purchasing Mojang AB (Minecraft)

Gran Hermano

humanji wrote: »

I still can't get my head around why the company is worth that much. Surely MS haven't a hope in hell in recouping that cost for a decade or two with what I can only imagine being Minecraft spinoffs and merchandising?

I really don't think it is about the software side but rather the existing user base.
The game has a large and loyal user base, more importantly a large young install base.
If MS can have these people logging in to play Minecraft (on any device) and start to use an outlook.com email account and other MS services and products I'd reckon they'd feel their investment was worth it. It is similar to how it is speculated Apple bought Beats not for the hardware but for the install base of subscription customers of streaming music.

CatInABox

ScumLord wrote: »

There's a user base of young soon to be consumers they could be targeting. They may see it as an advertising platform as much as anything else and if they want to go down the road of exclusivity it would sell future consoles.

In reality microsoft shouldn't have to pay for the game itself, I'd assume a company like them could produce a knock off easily enough, so all they're really getting out of it is the name and current user base.

This is probably the most important part for Microsoft. The user base is meant to be around 50 million active users, and surely Mojang/Microsoft have plans to monetise those users. Perhaps opening a kind of Mod Marketplace? You create a mod and then sell it for ten dollars, of which Mojang gets 3 dollars.

ScumLord

CatInABox wrote: »

This is probably the most important part for Microsoft. The user base is meant to be around 50 million active users, and surely Mojang/Microsoft have plans to monetise those users.

It seems to me that the user base is typically young too. So it's a bit like banking a consumer base for the future.

RasTa

Nice send off from the creator, seems solid

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.

super_furry

Minecraft 2 is by no means a guaranteed 50 million seller in the same way that Minecraft is. It’s success was very much an organic growth that, like the Wii, brought in non-traditional gamers and there’s no guarantee that the same audience will be there in three or four years time when Minecraft 2 does come out.

Shiminay

The only thing I could think MC2 might have as a bonus is better graphics, a completely rewritten engine (in a proper language like C or C++ which is, I believe, the basis of the console ports anyway) and maybe a scripted story/mission system. I think they're probably better off never releasing that sort of thing as a new game but as DLC for the existing (and locking them as exclusives on their platforms because if you're spending 2.5bn then you'll want to start seeing a return).

EoinHef

I just hope they leave the game alone on PC to be honest,there is no doubt in my mind its the best platform to play the game on by quite a distance. Like most im struggling to see how they can make a quick return on the investment. Can only really see long term gain in it for them.

Access to the user base is a good point,but mojang have gained that user bases confidence over the years,well mostly,MS will have to do a lot of work to gain the same level of trust from me.

Im skeptical and the moment but i hope MS prove me wrong and take the game to newer and better heights.

I would agree they have done a lot in the last while regarding what i would consider bad policies,making them better imo,so hopefully they stick to that

ScumLord

Big companies are always looking for the next big thing. Look at the money Facebook dropped into the oculus rift and the rumor seems to be they'll heavily subsidise it so it's basically going to be sold at cost. They won't be making money back on the hardware in the short term but they could be a big player in VR into the future.

I wouldn't have thought minecraft was the next big thing. It seems a bit late to try and take advantage of it unless they're looking for their own Mario to aim for a younger market.

Big well established businesses like this have to look to new ways to increase their market share, they've already saturated the traditional marketing avenues.

MadYaker

$2,500,000,000. Fúck me thats a lot of cash. I can totally understand why he went for it in the end. I think over time there will be changes, but nothing drastic. The main reason microsoft bought this was for access to the user base so I doubt they'll be stupid enough to alienate that user base by charging for updates or disabling modding or some other nonsense.

Ravenid

BeerWolf wrote: »

1) Buy the IP
2) Develop MineCraft 2...
3) Only barely survive the avalanche of cash that a Minecraft 2 would 100% bring to whoever owns the Minecraft IP
4)Profit
5)Profit Again
6)Even More Profit
7)Profit Profit Profit Profit
PROFIT

There is no ????????? in this one.

Sieghardt

They could have revived every franchise you ever loved

they could have localised everything that ever went unlocalised

they could have made hundreds of games, new IPs and old

such a waste

CatInABox

Here's some further reporting on it, which might help make more sense of the cost of Mojang:

Essentially, Microsoft expects to make more money from Minecraft than it would make if that $2.5 billion sat in the bank for a year and generated $25 million in interest. And yes, given the sales of the game — which just launched on Xbox One and PlayStation 4 — not to mention the merchandise licensing that Minecraft has seen to date, $25 million sounds like a very, very doable number.

I've taken that from here.

It does put it into a better perspective. Also, a lot of the 85 Billion that Microsoft has in cash is overseas (i.e. Ireland), and it's money that can't be brought back to the states without taking a massive tax hit, hence why American tech companies invest their cash pile in Euro companies (Nokia, Mojang)