Microsoft pays $2.5bn for Minecraft maker Mojang By Joe Miller Technology reporter, BBC News
Microsoft has bought Mojang the Swedish firm behind the popular video game Minecraft for $2.5bn (PS1.5bn).
The title that has sold more than 54 million copies, allows players to construct structures using LEGO-style blocks from the past and explore the vast map and battle others.
Phil Spencer, chief Xbox executive, announced the deal.
Mojang, the company's founders, assured fans that everything was going to be perfectly.
Analysts speculate that the deal is meant to increase Microsoft's Windows Phone users.
This acquisition comes a year after Microsoft bought the Finnish mobile phone Nokia's handset and devices division.
Minecraft is one of the top-selling apps on both the Apple iOS store as well as Android's Google Play, and has recently been released for Xbox One and PlayStation 4 and has boosted sales even more.
In the month of March, it was the third most popular console game according to market research firm NPD Group, despite being in the market for a short time.
minecraft servers
Mojang, the game's developer was founded in the year 2009. It earned more than $100 million in revenue in 2009 and employs about 40 employees.
Microsoft announced that the Mojang team would join its game studio, which is responsible titles like Halo, Forza, and Fable.
The tech giant's chief executive, Satya Nadella, said: "Minecraft is more than a great game franchise - it is an open world platform, powered by a vibrant community that we cherish and full of exciting opportunities for this community and for Microsoft."
Opposition to the sale
Markus "Notch", Mojang's founder has previously criticized Microsoft and told Reuters that there was a tiny market for Windows phones and it was not worth developing apps for.
Minecraft has a huge and enthusiastic cult following Many of them have expressed anger over what they perceive as the corporate takeover of an independent, communally-spirited company.
"Makes me sick and sad," wrote one user on a popular Minecraft forum. EvilBatsu wrote, "It would kill off the gaming community."
Some expressed concerns over whether fans would be able to demonstrate their talents.
"It will not just cost more to play the game, but it will also cost people their jobs." Many people play Minecraft and upload it to YouTube as a profession however, when Microsoft is the new owner, there will be copyright issues."
Some players suggested that Microsoft could spend more resources on expansions and enhancements.
In a statement, Microsoft said it would keep Minecraft across all of its existing platforms, and a "commitment to nurture and grow in the long run".
It stated that the acquisition was expected to be completed by the end of 2014.
In a statement that confirmed the deal on its website, Mojang reassured gamers, by saying: "Please remember that the future of Minecraft and you , the community, are crucial to everyone involved. Let this be the main thing you take away from this article.
With respect to Microsoft, Mojang said: "There are only few potential buyers with the resources to grow Minecraft on a scale that it is deserved."
The company added that "Notch" had made the decision that he "doesn't want the responsibility of owning an organization that has such global significance".
Developer Notch on selling Minecraft:
"I've become an image. I dont want to be a symbol. I don't want be responsible for something that I dont understand. That I dont want to tackle. I'm not an entrepreneur. I'm not a CEO."
You can read his entire statement here
Why Minecraft?
James McQuivey of analytics firm Forrester said that "Minecraft is among the most significant gaming properties in the world".
"Not only is it profitable however, it continues to grow in profits years after its release, mostly due to the enthusiastic player base that invests in building out their own Minecraft worlds.
"That helps to explain the reasons Microsoft would like Minecraft and would like to ensure that it's available on Microsoft's gaming platforms.
Prof Mark Skilton, from Warwick Business School, said the acquisition was about building a "strong customer base" for Microsoft.
"The online gaming industry is fast shifting from a niche group of enthusiasts to mass market and Minecraft is a natural progression since big business is following the traffic numbers in the digital world."
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