Microsoft Bought Minecraft for How Much?

Microsoft Bought Minecraft for How Much?

Microsoft recently purchased Mojang for $2.5 billion.

As you may have heard, Mojang was purchased by Microsoft, which prompted Notch and others to leave the company. In light of this buyout, we thought it would be fun to put this deal into context of other recent acquisitions in and around the industry. Or you can find out How Much is $2.5 Billion in Minecraft Terms?

So what else could Microsoft buy for around $2.5 billion?

10 Large Tech Deals in the Industry

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The one major problem is it was a one-and-done company. Scrolls is still in Alpha and his other project (0x10 ? ) crashed and burned last I heard about it. Minecraft is a buy-and-own-forever game. The game supports server hosting and modifications out the wazoo. How on earth is Microsoft supposedly going to be making money back on this deal?

P.S. I bet those 1,200+ people that Microsoft just recently laid off are absolutely 100% pissed about this deal. Can you imagine a company you work for cutting your position, but then announcing spending billions of $$ on purchasing video game rights? Talk about a kick in the nuts on the way out the door.

Introp:
Gold is worth about $1250/oz troy ~= $40/g
US$2.5B == 62 500 kg gold
1 m^3 of gold weighs about 19 300 kg

So Microsoft bought Mojang with 3.24 blocks of gold, or a bit more than 29 bars.

I could probably mine that up in an evening.

Deathfish15:
The one major problem is it was a one-and-done company. Scrolls is still in Alpha and his other project (0x10 ? ) crashed and burned last I heard about it. Minecraft is a buy-and-own-forever game. The game supports server hosting and modifications out the wazoo. How on earth is Microsoft supposedly going to be making money back on this deal?

P.S. I bet those 1,200+ people that Microsoft just recently laid off are absolutely 100% pissed about this deal. Can you imagine a company you work for cutting your position, but then announcing spending billions of $$ on purchasing video game rights? Talk about a kick in the nuts on the way out the door.

0x10c was scrapped, but some team is going about recreating it on their own for free.

And if I understand correctly, Microsoft is hoping that Minecraft for their Windows Phones are going to be a sales clincher.

Also, don't neglect the income they are making off of Minecraft Realms.

Deathfish15:
P.S. I bet those 1,200+ people that Microsoft just recently laid off are absolutely 100% pissed about this deal. Can you imagine a company you work for cutting your position, but then announcing spending billions of $$ on purchasing video game rights? Talk about a kick in the nuts on the way out the door.

I didn't even think of that. Lay-offs followed by a purchase of this magnitude has more than just a stench of "are you fucking kidding me?" on it.

What would be more interesting is the Minecraft deal compared to other acquisitions by MS. How does it compare to Nokia's phone division or Skype, e.g.? [I'm lazy and won't google it, and just wait for the infographic... xD]

Deathfish15:
How on earth is Microsoft supposedly going to be making money back on this deal?

- Skin packs over all the consoles or atleast increase to the ones on there consoles.
- Merchandising, think about how many kids out there are running around with those crappy cardboard heads that cost them 20 cents to make and prob sell them for what $10-15 each.
- Making paid DLC/expansion updates, paid mods, etc.
- Future Minecraft games such as a Minecraft 2.
- Revenue from all the console, handheld and PC sales.
- Server hosting on PC revenue.
- Any games put out under the Mojang name will have millions of kids buying it just because it is Mojang, they pretty much bought the entire 3-15 year old market.

Prob missed some stuff.

Gotta keep inflation in mind too, mind you. YouTube probably cost Google more than $2.5 billion in today's money. But only just.

Also, keep in mind that not all of the buyouts you listed were made for actual money. This one was, I believe, but Disney "buying" Pixar for example was actually a trade for company stock; no actual cash changed hands, and as far as I know Steve Jobs never sold that stock. (And why would he, when it was enough to make him the largest single shareholder in the company?)

Looks like I was talking out of my ass last week when I said Disney bought Marvel for $2 billion. Wonder why I thought that...

I also wonder if the Mojang dudes have even sobered up yet.

I've been holding off on the Minecraft craze for years, especially since my computer is significantly subpar. I told myself that when it ported to consoles, I'd scoop it up day one. Never got around to it. However, now that Microsoft owns Mojang, I will definitely buy it for my XBox One.

I know this is an extremely unpopular action around these parts, but I truly want to support Microsoft. I've essentially made an investment with them with the purchases of a 360 and now a One. Knowing that the One is being softly crushed by the PS4, I need to make sure my investment pays off and I will continually support Microsoft with my cash flow.

I think we can all agree that Rick Astley is the loser in all this. Poor Rick.

NickBrahz:
- Any games put out under the Mojang name will have millions of kids buying it just because it is Mojang, they pretty much bought the entire 3-15 year old market.

It's an interesting thought, but I disagree. Mojang made Minecraft, but nobody cares about Mojang. It's like telling 3-15 year-old me that Bandai makes Gundam: I'll hear your words, but I will continue to only care about Gundam. So while they can use the Minecraft name, and it is valuable, the Mojang name is basically background noise. They are the IATSE logo at the end of film credits.

(15+12) million players X ~$20 = $540 Million.

So Microsoft is going to have to do the equivalent of selling Minecraft to it's entire player base five additional times to get its money back (assuming that capital and running costs are less than $200 million and ignoring taxes).

I just don't see this happening even if they monetize the crap out of it.

Until someone creates a better minecraft then minecraft, and if they continue to support it with more tiles, more stuff you can use to build, etc...

Then they will have no prblem.

Because they aren't making minecraft for me. I'm 25 years old. You know who's going to be playing minecraft?

My cousins. All 9 of them. And if I have a kids, you know what I'm going to buy for them as their first computer game?

Minecraft.

And you know what I recommend to parents as a fun game that isn't super violent and lets their kids be creative?

Minecraft.

And until someone out minecrafts minecraft, it is an infinite gold mine.

Deathfish15:
How on earth is Microsoft supposedly going to be making money back on this deal?

Here's one radical idea: Minecraft 2

Good Deal, Microsoft. Maybe now we can optimise it to use less resources, re-write the code better and put a new spit and shine option on it, give the graphics options a face-lift for those with high end gamming rigs.

ah, seeing this all happen on by one was more fun. still the best part was was blizzard buying itself.

VanBasten:

Deathfish15:
How on earth is Microsoft supposedly going to be making money back on this deal?

Here's one radical idea: Minecraft 2

Its radical alright. as radical as PC 2. as in - never going to happen. you cant sequel what is costumizable to begin with.

Darmy647:
Good Deal, Microsoft. Maybe now we can optimise it to use less resources, re-write the code better and put a new spit and shine option on it, give the graphics options a face-lift for those with high end gamming rigs.

Minecraft is written in Java. as in, actual Java, not javascript (which is completely different thing despite the name). other than rewriting whole gaming in a normal coding language, there will be no optimization of value.

Deathfish15:
Talk about a kick in the nuts on the way out the door.

That would only happen if they walked out backwards.

Strazdas:

Its radical alright. as radical as PC 2. as in - never going to happen. you cant sequel what is costumizable to begin with

You most certainly can, as long as there is extensibility and/or graphical gains to be made.
The Unreal series is proof enough of that. (also, Elder Scrolls series, for what that's worth)

The real question, is whether Microsoft would be willing to sink the additional necessary scratch to produce that next iteration. Because they sure as Hell aren't going to succeed if their plan is to pull a coup' on all the MC servers and modders out there now.

NickBrahz:

Deathfish15:
How on earth is Microsoft supposedly going to be making money back on this deal?

- Skin packs over all the consoles or atleast increase to the ones on there consoles.
- Merchandising, think about how many kids out there are running around with those crappy cardboard heads that cost them 20 cents to make and prob sell them for what $10-15 each.
- Making paid DLC/expansion updates, paid mods, etc.
- Future Minecraft games such as a Minecraft 2.
- Revenue from all the console, handheld and PC sales.
- Server hosting on PC revenue.
- Any games put out under the Mojang name will have millions of kids buying it just because it is Mojang, they pretty much bought the entire 3-15 year old market.

Prob missed some stuff.

Even with all of that, I get the impression that Microsoft missed the gravy train on this one. I can't see them making this into a larger deal than it already is. Hom many different copies of one game do you need? And now the original team is gone. I can't see a Minecraft 2 being a huge improvement, unless they focus on the graohics, or something equally artificial. I see this turning into a RARE situation myself. What value is Mojang without the people who originally ran it? The brand name? They cut out the people who made it great to begin with.

Razorback0z:

Deathfish15:
Talk about a kick in the nuts on the way out the door.

That would only happen if they walked out backwards.

Well, they tried to moonwalk out the door, but it backfired.

So I guess that thing where Notch was going to release the source code isn't going to happen now eh?

I can't see a way that Microsoft isn't going to ruin Minecraft.

Strazdas:
never going to happen. you cant sequel what is costumizable to begin with.

That's why there hasn't been a single Call of Duty game since Call of Duty 4 because of it's highly customizable mod tools.

VanBasten:

Strazdas:
never going to happen. you cant sequel what is costumizable to begin with.

That's why there hasn't been a single Call of Duty game since Call of Duty 4 because of it's highly customizable mod tools.

Erm, COD was NOT costumizable. Its engine did not allow it. its gameplay did not allow it. there were no reworks of COD to make another game. you could not make a north pole survival simulator out of COD. you can with minecraft. the costumizability of the two are incomparable.

 

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