Filtered by: Scitech
SciTech

Microsoft buys ‘Minecraft’ developer Mojang



 
Mojang, creator of the runaway phenomenon “Minecraft”, has been proudly independent since its inception in 2009. But all that has changed, as Microsoft officially announced on Monday its acquisition of the video game developer.
 
According to Microsoft's press release:
 
The Mojang team will join Microsoft Studios, which includes the studios behind global blockbuster franchises “Halo,” “Forza,” “Fable” and more. Microsoft’s investments in cloud and mobile technologies will enable “Minecraft” players to benefit from richer and faster worlds, more powerful development tools, and more opportunities to connect across the “Minecraft” community.
 
Under the terms of the agreement, Microsoft will acquire Mojang for $2.5 billion. Microsoft expects the acquisition to be break-even in FY15 on a GAAP basis. Subject to customary closing conditions and any regulatory review, the acquisition is expected to close in late 2014.
 
The announcement puts to rest days of speculation, after talk of the buyout started to circulate last week.
 
“The deal (could) be valued at more than $2 billion,” wrote the Wall Street Journal on September 9, citing “a person with knowledge of the matter” as having provided the information.
 
Stellar rise
 
Mojang’s stellar rise has taken it beyond the PC, with “Minecraft” finding its way onto other platforms such as PlayStation 3, PlayStation Vita, Xbox 360, and even next-gen consoles PlayStation 4 and Xbox One. Company co-founder Carl Manneh’s recent statements initially seemed to suggest a lack of interest in such a deal.
 
“We are living the dream, really,” Manneh stated. “An exit would be huge, but do we really need that money? In our case, we have the cash flow. We have more money than we need.”
 
Mojang co-founder and owner Markus “Notch” Persson has also been an iconic advocate of the indie game development scene. In 2012, he openly criticized Microsoft over Windows 8.
 
“If Microsoft decides to lock down Windows 8, it would be very, very bad for Indie games and competition in general,” Persson said in 2012.
 
Yet despite such sentiments, Mojang and Microsoft have remained on friendly terms. According to a Bloomberg report, (http://www.bloomberg.com/news/2014-09-09/microsoft-said-near-2-billion-deal-for-minecraft-maker.html) Persson himself approached Microsoft about the deal “based on a positive working relationship on Minecraft for Xbox.” “Minecraft” was, after all, an Xbox 360 exclusive for more than a year following its May 2012 debut on the console. And recently, the two companies worked together to release a “Halo”-inspired character pack for the game.
 
It is unlikely, however, that Persson will remain at Mojang upon the completion of the sale.
 
Mojang made a profit of $129 million in 2013, so it’s no surprise Microsoft has set its eyes on the company. However, there is real public conern that the acquisition might be the death knell for the multi-platform development of Mojang’s games. 
 
Unprecedented success
 
“Minecraft”, Mojang’s first-person world-building sandbox game that everybody over the age of 5 has either played or heard about, was launched in 2011 following two years of beta. As of June 2014, it has sold nearly 54 million copies worldwide.
 
The game remains Mojang’s major release, but the development team has also been hard at work on smaller titles, such as “Catacomb Snatch” and “Battle Frogs”. It is currently developing a game called “Scrolls”, which the company has described as a tactical role-playing game.  — TJD, GMA News