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Microsoft buying an Indie games developer "Mojang" for $2 Billion

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  • Zepic
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    Zepic polycounter lvl 11
    All this reminds me of this Instagram video:

    https://www.youtube.com/watch?v=uJXOJ6oro_s
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    CJFerguson wrote: »
    E
    Edit* Plus that game has so much room to expand upon itself. Nuts. Somebody already said this, but it's like the new Legos minus the hilarious movie.

    First The Lego Movie, And Now Minecraft
  • Quack!
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    Quack! polycounter lvl 17
    Google is going to buy Twitch...

    Oh waiiiiiit...

    Sidenote: Spending 2 billion on a 1 trick pony that's been around for years doesn't seem like a smart move.
  • martinszeme
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    martinszeme polycounter lvl 8
    If that one trick pony is going to bring couple billions in next few years it might not be the worst idea.

    edit: Then again, it was Notch who approached them, so go figure which is the best for MS.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    Quack! wrote: »
    Google is going to buy Twitch...

    Oh waiiiiiit...

    Sidenote: Spending 2 billion on a 1 trick pony that's been around for years doesn't seem like a smart move.

    LEGO has pretty much been making Lego bricks for about 67 years, it's worked out for them. Most game studios are one trick ponies anyway, they just keep evolving the game type they're good at over multiple sequels or titles that are functionally the same game with a different setting and story over it.

    AFAIK skin packs sell for $2 on the 360 version, I'm not sure about the others. But I could see that being the method for the foreseeable future, just continue updating and improving the game while selling skin packs.
  • spitty
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    spitty polycounter lvl 18
    remember when notch talked about funding Psychonauts 2 but then backed out? maybe he'll have enough money now :)

    http://www.joystiq.com/2013/02/05/notch-no-longer-involved-in-psychonauts-2-funding/
  • lauren85
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    Microsoft must have too much money burning a hole in their pocket, because there's no way it's worth that much. Mojang is nothing special in terms of talent and the IP cannot be worth that much. On the other hand it's obvious why notch is selling despite whatever he thinks about Microsoft.
  • martinszeme
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    martinszeme polycounter lvl 8
    Well seeing that Mojang makes somewhere around 300 million a year it doesn't feel like they are overpaying much. Game sales ONLY in 2012 was 250 mil. and that doesn't take into account book deals, merchandise, new console sales, PS3 sales etc etc. Merchandise alone is making them more money than game itself by now.
  • Neox
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    Neox godlike master sticky
    lauren85 wrote: »
    Microsoft must have too much money burning a hole in their pocket, because there's no way it's worth that much. Mojang is nothing special in terms of talent and the IP cannot be worth that much. On the other hand it's obvious why notch is selling despite whatever he thinks about Microsoft.

    you do realize how many kids in the age of 6-12 are playing it? minecraft is HUGE, it's merchandising is so huge there are special minecraft departments in supermarkets. Whil you might not be playing it, this marketsegment is worth a lot. Kids asking for money to buy new minecraft shit, this is where a lot of cash is floating around. Kids can be super annoying to get what they want :D
  • martinszeme
  • low odor
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    low odor polycounter lvl 17
    "you do realize how many kids in the age of 6-12 are playing it?"

    heh.. My six year old daughter plays the ps3 minecraft almost daily...it neat to peer into the world built by a six year old...lots of roller coasters and giant Moa`esque statues of Rabbid Rabbits..she also like building houses out of tnt
  • Muzzoid
  • Entity
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    Entity polycounter lvl 18
    Not about money..heh, sure thing Notch!
  • almighty_gir
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    almighty_gir ngon master
    because his site is exploding right now:
    I'm leaving Mojang

    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.
  • martinszeme
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    martinszeme polycounter lvl 8
    Good for him. He sounds like he hasn't had the best of time lately and in general. Hope he gets some rest and enjoys himself!
  • ZacD
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    ZacD ngon master
    I'm glad Notch is getting out of what he feels is a bad situation. I completely believe it's not about the money, and agree that he should do what makes him happiest and not worry about what the internet thinks. I honestly hope for the best for him, he doesn't deserve a lot of the crap he gets for making a fun personal project.


    This is the Phil Fish video he's talking about. I feel like it pretty much applies to Notch or any notable figure like an internet celebrity, like TotalBiscuit or PewDiePie.

    [ame="http://www.youtube.com/watch?v=PmTUW-owa2w"]This Is Phil Fish - YouTube[/ame]
  • eld
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    eld polycounter lvl 18
    such is the games industry.
  • GarageBay9
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    GarageBay9 polycounter lvl 13
    Microsoft shareholders should be lighting torches and sharpening pitchforks over this. 18,000 laid off, CSGs cut left and right, projects canceled, and they buy a brand that has all but run its course for TWO AND A HALF BILLION DOLLARS.

    Only the land of managers managing managers could be so monumentally stupid. They will never sell 2.5 billion worth of licenses, they'll never even sell 2.5 billion worth of merchandized crap. It's not going to make or break the MS Gaming brand. If they try to disable the PC / PlayStation versions to make it an Xbox exclusive, they'll lose ANOTHER 2.5 billion in a class action suit.

    I don't know whose idea this aquistion was, but they are SPECTACULARLY STUPID.
  • mats effect
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    Good for him if its what he wants to do.
  • almighty_gir
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    almighty_gir ngon master
    just throwing this out there though:

    if it wasn't about the money, he wouldn't wait until after the deal to leave ;)
  • martinszeme
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    martinszeme polycounter lvl 8
    GarageBay9 wrote: »
    Microsoft shareholders should be lighting torches and sharpening pitchforks over this. 18,000 laid off, CSGs cut left and right, projects canceled, and they buy a brand that has all but run its course for TWO AND A HALF BILLION DOLLARS.

    Only the land of managers managing managers could be so monumentally stupid. They will never sell 2.5 billion worth of licenses, they'll never even sell 2.5 billion worth of merchandized crap. It's not going to make or break the MS Gaming brand. If they try to disable the PC / PlayStation versions to make it an Xbox exclusive, they'll lose ANOTHER 2.5 billion in a class action suit.

    I don't know whose idea this aquistion was, but they are SPECTACULARLY STUPID.

    Ok so first things first. MS laid off those people mostly in Nokia department which still lived like in their golden days of 1998. Most of them were managers managing managers etc etc. Absolutely right thing to do.
    Projects are canceled everywhere in the industry. How is that solely MS fault?

    MS has already said they plan to earn 2.5 billion back by fiscal year of 2016. So that should give you an idea of how much money Minecraft is actually making. Real numbers are never shown, so I'd say merchandise alone is getting them LOADS of cash.
    They also have said that they will continue making MC versions for PS3, PS4 Vita etc etc. They are not that dumb to just throw business away.
    Do people still think MS is at war with Apple, Sony etc? Office is one of the best selling apps on Mac and they don't mind that market share in that platform.

    Edit: I live in UK and local game shop recently had these MC plush toys, Action figures. Bought one myself for my wife as she is a huge fan. Went there couple days later and they had sold out everything. Those things are selling quick. Not to mention stuff like books that went huge last Christmas and will most likely be huge hit this year too.
  • mats effect
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    Minecraft is pretty much what every kid of school age is into I think its going to be money well spent. Keep in mind Facebook spent $1B on a free photo app.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    Quoting Jerry from Penny Arcade

    "If you don’t hang around with Children Of A Certain Age, you might not know exactly what is being bought here. They’re functionally purchasing a generation. Two billion dollars starts to look like a steal."
  • martinszeme
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    martinszeme polycounter lvl 8
    Its like Nintendo. Most devs here when they were kids started playing Super Mario, Zelda etc and still continued to play those games for years and years. Now Those games are played by their kids because they are colourful, fun and enjoyable for the whole family. Same with MC.
    I totally agree with what PA guys are saying. Kids will always remember that game with blocks, caves and railroads. Even when they are older and they have their own kids.
  • Xoliul
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    Xoliul polycounter lvl 14
    just throwing this out there though:

    if it wasn't about the money, he wouldn't wait until after the deal to leave ;)

    But he owns almost the whole company. So leaving = selling? Unless you're suggesting he should have given it away or something?
  • Blaizer
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    Blaizer interpolator
    there's a good article about Notch leaving Mojang. http://www.pcgamer.com/2014/09/15/notch-on-leaving-mojang-im-not-a-ceo-im-a-nerdy-computer-programmer-who-likes-to-have-opinions-on-twitter/

    Seriously, i don't believe him. Money is money duhh!, he have all his life solved.
  • NegevPro
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    NegevPro polycounter lvl 4
    Blaizer wrote: »
    there's a good article about Notch leaving Mojang. http://www.pcgamer.com/2014/09/15/notch-on-leaving-mojang-im-not-a-ceo-im-a-nerdy-computer-programmer-who-likes-to-have-opinions-on-twitter/

    Seriously, i don't believe him. Money is money duhh!, he have all his life solved.
    Well to be fair, he already had more than a lifetime's worth of money before the deal went down. Hopefully this was the best decision for him as it definitely sounds like he wasn't happy with the attention he was getting.
  • ZacD
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    ZacD ngon master
    Quoting Jerry from Penny Arcade

    "If you don’t hang around with Children Of A Certain Age, you might not know exactly what is being bought here. They’re functionally purchasing a generation. Two billion dollars starts to look like a steal."

    I definitely agree with that, Minecraft is pretty much the Tetris, Pacman, or Mario Bros of a new generation.
  • Makkon
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    Makkon polycounter
    I hold nothing against the guy. I would have done the same thing, but much earlier. Only hipsters are hating on him for "selling out" and securing the rest of his life. I wish I could be in his situation right now. A strong will to create, and a near endless budget to do so. He could live on the interest alone, and do whatever he wants. And because he is who he is, I can't imagine him wasting that money or time that has been given to him.

    I wish him the best, and look forward to what the future brings.
  • littleclaude
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    This explains the break even by end of fiscal year 2015 quote means: link

    "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."
  • Snader
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    Snader polycounter lvl 15
    Right that's because currently the brand is worth 2.5 billion so it's not seen as a loss, in the same way that spending 200.000 on a house isn't seen on a loss. But I'd not be surprised if Microsoft were to pull out the bathroom and the kitchen sink and devalue the house. And then you do count it as a considerable loss.

    Heck. Stocks are already dropping a bit. (though that might very well just be noise)
  • Goeddy
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    Goeddy greentooth
    This explains the break even by end of fiscal year 2015 quote means: link

    "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."

    honestly for 2,5 billion they could have bought ANYTHING.

    for years they have been treading microsoft game studios and rare like shit, and now suddenly they have 2,5 billion.
    they could have developed so many xbone exclusives for that money, the PS4 would be laying in the dust with the Wii U.
  • weee
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    weee polycounter lvl 3
    happy for Notch, what a great escape, a living legend!
  • slipsius
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    slipsius mod
    Goeddy wrote: »
    honestly for 2,5 billion they could have bought ANYTHING.

    for years they have been treading microsoft game studios and rare like shit, and now suddenly they have 2,5 billion.
    they could have developed so many xbone exclusives for that money, the PS4 would be laying in the dust with the Wii U.

    That's the shitty side of this business. Companies treat employees poorly, have massive, constant layoffs, just so they can treat their shareholders well and keep investors coming. Though, really, if they have 2.5 billion just laying around, I would think they could treat everyone well. But I really have no idea how the business side of things work. I know it's all about the money, but still.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    Goeddy wrote: »
    and now suddenly they have 2,5 billion.

    More like $85.7 billion

    It's weird that everyone talks about Microsoft ruining Rare, they kept making games, they made 3 new IPs for the launch of the 360, Viva Pinata won a Bafta. Kinect Sports sold 3 million units and got a BAFTA Family Game of the Year award.
  • martinszeme
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    martinszeme polycounter lvl 8
    Fair amount of stuff have changed in MS itself. New CEO, which for once is not bat shit crazy and already have made progress with certain parts of MS. Including Xbox division and gaming. Maybe its for good.
  • Fuiosg
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    Fuiosg polycounter lvl 5
    They must plan on minecraft becoming the legos of the digital era. It is pretty amazing they dropped that much cash on an IP when they could have, oh I don't know, tried funding their own studios to make something innovative. I'm just glad they bought Mojang and not some other developer I care about.
  • martinszeme
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    martinszeme polycounter lvl 8
    Funding studios for innovation doesn't equal to actual success or even innovation. Much easier for business to just grab already successful product/company and go with that.
    Though I do agree that MS should spend more money on their own studios and talent and not just become some sort of Facebook-Like-Company that buys up promising things.
  • ambershee
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    ambershee polycounter lvl 17
    More like $85.7 billion

    It's weird that everyone talks about Microsoft ruining Rare, they kept making games, they made 3 new IPs for the launch of the 360, Viva Pinata won a Bafta. Kinect Sports sold 3 million units and got a BAFTA Family Game of the Year award.

    As a quick side note, Viva Pinata wasn't a launch title.

    They're 'not ruined' if you see them as a factory to churn out games and turn a profit. In that way the isn't true. They are ruined if you see them as a former creative driving force in the industry responsible for a large number of some of the most influential titles that many of us here will have grown up with.

    Microsoft acquired the studio fairly early, but it wasn't integrated into the company as a whole until 2007 (hence how Viva Pinata also got a Nintendo 3DS release, as an example). Nuts and Bolts was already in development at this time, but it was the last game that Rare had the freedom to work on.

    The company was "restructured" and integrated into Microsoft not long after the departure of the studio heads, resulting in a fairly mass change of staff, and Rare was rebuilt as a Kinect focused studio.

    They've knocked out three Kinect Sports titles since.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    If you look at all of Rare's titles throughout it's history, it was pumping out sports games, movie tie ins, game show adaptions, etc... it WAS a game factory. When you make so many games a few are bound to stand out. Acquired fairly early? Rare was 17 years old when Microsoft bought them.
  • Fuiosg
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    Fuiosg polycounter lvl 5
    If you look at all of Rare's titles throughout it's history, it was pumping out sports games, movie tie ins, game show adaptions, etc... it WAS a game factory. When you make so many games a few are bound to stand out. Acquired fairly early? Rare was 17 years old when Microsoft bought them.

    That's deceiving though, if you look at their resume there's a remarkable shift that happens toward the mid-90s where they stop making Jeopardy and WWF games, and start producing killer instinct, donkey kong country, blast corps, goldeneye, banjo kazooie, jet force gemini, etc. and this continues up until viva pinata and the kinect sports games. This isn't a case of making a few games that stand out, it's a very evident trend of creative output that suddenly goes cold.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    You talk as if Viva Pinata was a bad game.

    I'm 35 so I don't see them as suddenly getting good in the 90's, I thoroughly enjoyed Slalom, Wizards & Warriors, RC Pro-Am and many other 80's titles. Are you sure the slowing output isn't a result of the increased time & budget to make games?
  • Fuiosg
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    Fuiosg polycounter lvl 5
    You talk as if Viva Pinata was a bad game?

    I haven't played it, just saying after 2008 they began to run dry and things changed.
  • ambershee
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    ambershee polycounter lvl 17
    The studio's history prior to it's '94 partnership with Nintendo is fairly irrelevant to how the studio was perceived prior to it's Microsoft acquisition. Donkey Kong Country, Goldeneye, Conker, Banjo, Perfect Dark - those are the games that defined Rare

    When I said 'early', I meant 'early compared to it's integration' - it may have been owned by Microsoft as early as 2002, but it was somewhat left to it's own devices for about five years, which is extremely unusual for any kind of acquisition.
  • Justin Meisse
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    Justin Meisse polycounter lvl 18
    Their games had the 'Rare' feel prior to '94. I haven't played the Kinect Sports games so I can't confirm if it had that Rare charm that Viva Pinata did but it would make sense since the founders left in 2007.
  • Wells
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    Wells polycounter lvl 18
    after Facebook bought Whatsapp for $16 billion, I can't seem to be shocked by a mere $2.5b being spent on something like Minecraft. At the time, whatsapp had 400m users. Not sure what the current numbers look like, but at the start of this year Minecraft had over 100m on pc alone, another 25m or so on other platforms. So even from just a user acquisition cost, it seems to not be unreasonable.

    I guess for me 2.5b just isn't what it used to be.
  • NegevPro
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    NegevPro polycounter lvl 4
    Goeddy wrote: »
    honestly for 2,5 billion they could have bought ANYTHING.

    for years they have been treading microsoft game studios and rare like shit, and now suddenly they have 2,5 billion.
    they could have developed so many xbone exclusives for that money, the PS4 would be laying in the dust with the Wii U.
    In Microsoft's defense, the Xbox division has not been profitable for quite some time afaik. I remember reading an article not too long ago that claimed Microsoft was losing something like a billion dollars a year because of the Xbox.

    I thought the whole reason Microsoft even got into the games industry was to just get people onto their platform, hence why they are fine with losing a lot of money from that platform. The majority of the money made from their platform comes in the form of charging for their services, in the case of the Xbox, I'm sure Microsoft makes more money from selling XBL subscriptions than from selling AAA games. I'm not even sure if I'd believe that Microsoft will stay in the console business after this generation of games (although to be fair, I'm not sure if we'll even see home consoles after this generation, at least in the traditional sense, since everybody seems to be moving towards games as a service.)

    From a business perspective, I think Microsoft made a good decision. Minecraft can give them a return on their investment in the long term for sure. From a gamer perspective however, I don't think the future of Minecraft will be very bright. Minecraft was a very community driven game and things like content updates were always free, but I can already imagine the horrible Microsoft-related changes to the game. Paying for future updates, multiple sequels, and even a subscription fee all sound like plausible directions to me.
  • iniside
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    iniside polycounter lvl 6
    Goeddy wrote: »
    honestly for 2,5 billion they could have bought ANYTHING.

    for years they have been treading microsoft game studios and rare like shit, and now suddenly they have 2,5 billion.
    they could have developed so many xbone exclusives for that money, the PS4 would be laying in the dust with the Wii U.

    Honestly, it's miracle that MSGS still exist in first place. For quite some time, this division is nothing but loses. If it was not Microsoft it would be closed years ago.


    As for next console generation. I'm honestly not sure if MS will participate. Xbox One adoption is poor, games division is taking loses, and at the same time world is turning into selling services and shared profits. My prediction is that entire xbox division will be either completely closed or merged with Windows division. (along with firing everyone who is not programmer).

    They currently have most of gaming market by extension of windows.
    Xbox one and Windows currently share most of code base. After DirectX 12, there will be little to none difference between xbox one and windows.
    At that point making game for xbox one and not releasing it on Windows will be just either stupid, or pure arbitrary decision.
    My prediction is that there will be Microsoft exclusive titles for xbox one and Windows 9 (DirectX 12), to speed adoption of next windows.
    Next step, will be making Windows more gamer friendly.
    Second step be making windows free.
    Third step will be enforcing windows store on everyone, but means I can't imagine yet.

    Bah. But that's probably totally unrelated.


    As for Notch. Damn, now he can do some dream quality games and still have more money that he can spend for the rest of his life.
    Well at least that is what I would do ;p.
  • Fuiosg
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