Slashdot Mirror


Report: Microsoft To Buy Minecraft Studio For $2bn+

dotarray (1747900) writes "A surprising story has emerged today that suggests Microsoft is looking to buy Minecraft developer Mojang. The reported price tag is "more than US$2 billion." The original report is at the WSJ (possibly behind a paywall). Quoting: "For Microsoft, "Minecraft" could reinvigorate the company's 13-year-old Xbox videogame business by giving it a cult hit with a legion of young fans. Mojang has sold more than 50 million copies of "Minecraft" since it was initially released in 2009 and earned more than $100 million in profits last year from the game and merchandise. "Minecraft" is already available on the Xbox, as well as Sony Corp.'s PlayStation, PCs and smartphones."

41 of 368 comments (clear)

  1. No. by Bing+Tsher+E · · Score: 4, Informative

    Please. No.

    1. Re:No. by Em+Adespoton · · Score: 5, Insightful

      The interesting thing here is that the valuable part of Minecraft is not the software produced, but the development and publishing method and its userbase.

      If MS touches the development or publishing method, it will lose its userbase to someone else doing the same thing properly. Basically, it'll end up like the Sims Online.

    2. Re:No. by Anonymous Coward · · Score: 5, Interesting

      Posting anonymous because I really shouldn't be saying this. Yes, it's for real: notch wants to sell out. It's been known inside the company for weeks. The news hit the developers in the Stockholm office very hard to the point that people were actually sobbing. No-one's happy besides the two people likely to end up with a large pile of cash after this goes down.

    3. Re:No. by Spudboy2003 · · Score: 5, Funny

      My 9 year old is about to learn the hard realities of life.

    4. Re:No. by killkillkill · · Score: 4, Interesting

      And suddenly the pieces begin to come together.

    5. Re:No. by metamatic · · Score: 5, Interesting

      The news hit the developers in the Stockholm office very hard to the point that people were actually sobbing.

      Yeah, they probably know how well being bought by Microsoft worked out for Sublogic. Or Oddworld Inhabitants. Or Bungie, even, forced to crank out endless formulaic sequels.

      On the one hand, I can't blame notch, because if Microsoft offered me enough cash to retire, I'd sell out. But on the other hand, notch is already a millionaire, right? It's not like he needs the money.

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    6. Re:No. by sg_oneill · · Score: 4, Interesting

      To some degree it has already happened. With no further updates to bukkit my 6yo is in hell. He has been playing Minecraft since he wasn't even 2yo, his entire youth has been focused on it.

      If it was any other game I'd say "...and thats a good thing", but minecraft is a phenomena not like any other. A friend of mine has a deeply autistic son who's never had friends due to the toll autism takes, and he's had deep troubles with school and the like. Until minecraft. On minecraft he's just another kid on a server making castles with his buddies and being part of a gang of kids creating and playing. Its really brought him out of his shell and if I come over to visit his mom he'll even come out and say hello and want to talk (about minecraft... always about minecraft. Its a hobby), and thats a fucking achievement.

      He's now interested in school and maths finally because he wants to be jeb (the main 9-5 developer on minecraft these days) one day. He's got a hero.

      Basically minecraft is turning him into a normal kid, and I'd hate to see anything ruin that.

      --
      Excuse the Unicode crap in my posts. That's an apostrophe, and slashdot is busted.
    7. Re:No. by dshk · · Score: 5, Insightful

      I think one of the things which made Minecraft popular is Java. There are a huge number of plugins and mods, these wouldn't happen without Java. It is easy to reverse engineer and modify anything in Minecraft exactly because it is in Java. Even its plugin system was written by an external developer! I do not really know Minecraft myself, but my 13 old years son plays Minecraft, and he spent months coding Minecraft extensions, and as far as I hear from him, a usual server uses a very large number of extensions.

      Java is not ideal for graphics intensive applications, but it is also not that bad either. Minecraft (without mods) does not represent what is possible in Java, becuase it is very under-optimized. The new 1.8 version is much faster, but there is still much room for optimization.

      This is similar to why PHP web softwares are very popular, they are not perfect, but they are very easy to be modified.

    8. Re:No. by dshk · · Score: 3, Informative

      I would add that Java also made it trivial to run Minecraft on Linux. More than one of his friends play Minecraft on Ubuntu, I guess they have old PC-s.

    9. Re:No. by DeathElk · · Score: 3, Insightful

      Yes. And I predict MS putting it up for sale in a few years for about $200M

    10. Re:No. by Opportunist · · Score: 3, Insightful

      Pretty much this. There is very little in the IP itself, especially since everyone and their dog either already did a Minecraft clone or is currently developing one. The moment MS taints the IP by turning it into something its users do not like, it's gone from the front page and replaced by one of its copycats.

      For reference, see Napster.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    11. Re:No. by Opportunist · · Score: 3, Interesting

      They are popular with users, but very unpopular with studios. Simply for the same reason: Lack of control over what the user can actually do. It's kinda hard to sell addons when users can simply create them themselves. How do you sell DLC when users simply go "fffft, gimme an hour to code it an keep your overpriced shit!"

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    12. Re:No. by indytx · · Score: 3, Interesting

      And suddenly the pieces begin to come together.

      There was an article in I think Time not all that long ago, and the writeup made it sound as if notch had lost all of his drive and zeal. It sounded as if notch and the other owner were going through the motions and blowing through mountains of cash like some newly minted pop star flavor of the month with crazy expensive partying for the employees on the company dime. Seemed very dotcom.

      --
      Make love, not reality television.
    13. Re:No. by Drinking+Bleach · · Score: 5, Insightful

      It still has no official modding support. Mojang bought Bukkit and hired its team over a year ago, but they still keep it an independent project and not the official mod API (think how CentOS is now owned by Red Hat but still has a social/corporate firewall between RHEL and CentOS devs).

      As for being written poorly in Java, it was original just some dumb idea that Notch had to remake Infiniminer, and his Random Java Project #56 -- he already had mild internet fame (albeit nothing compared to his post-Minecraft fame), but this particular game had just enough potential to keep it moving. He didn't make it to be very performant in the first place, Java was just familiar and convenient to him.

    14. Re:No. by bluefoxlucid · · Score: 3, Interesting

      Why not give your employees equity in the company; then, when you sell, they get a chunk, you leave with a much bigger pile, you found a new company, and anyone who liked the deal can leave and come to your new company? A string of selling the shit you already sold xD

    15. Re:No. by rtb61 · · Score: 4, Insightful

      Actually lateral thinking would be to buy Lego and create a full game based around constructing with the Lego blocks. You then have a full 'click and mortar'(heh, heh) solution ie a full range merchandise already in stores to go with the newly created game. Makes much more sense than buying minecraft.

      --
      Chaos - everything, everywhere, everywhen
    16. Re:No. by Bing+Tsher+E · · Score: 3, Insightful

      Who is to say they are even the same A.C.? Any AC comment here on this topic that professes to 'inside info' is suspect. There are a large number of people who resent or otherwise strongly dislike Minecraft and Mojang, for any number of reasons.

  2. HALO by AdamThor · · Score: 3, Insightful

    Remember when everyone was excited about this game in development called "Halo", and MS went and bought that up?

    Not too surprised here.

    --
    -- "Oh. This guy again."
    1. Re:HALO by Adriax · · Score: 4, Funny

      They should have bought minecraft years ago then. Back when the hype was starting and they could have gotten it for a couple million.

      Kinda curious as to how they're going to screw it up.
      Forced windows 8 integration?
      Port the x-box port back to windows and drop the java version?
      Mandatory Realms hosting for multiplayer so they can police it and add microtransactions for diamonds? "10 credits = 1 diamond. Or buy a pack and save! Available packs include the 64 diamond Stack Pack, the 574 diamond Block Stack Pack, or the best value the Diamond Block Dick To Pierce The Skies pack!"

      --
      I don't suffer from insanity, I enjoy every minute of it!
    2. Re:HALO by Artifakt · · Score: 3, Informative

      Halo was really based in the same universe (or a very similar one) as an earlier series of games usually called the Marathon trilogy. These were Bungie's first big hits, and had two major properties that make them remembered fondly.

      1. They were like Doom (2 1/2 D shooters), but with great plots and characterization for their time. (And most of this keenness was something more players saw there for the first time, often before Doom came out, or at least caught on, because Apples were around more then- see point 2). Bungie may have been first with some features, was definitely first to get them right with others, and it took some time for Id games to even be taken seriously. Think of the story everybody wanted for Mass Effect 3, and mostly felt disappointed in. For most gamers who started the series, Marathon 3 was like everything more modern players hoped Mass Effect 3 would be. Plus, many players felt they got a lot of other things right, like squad level control, vehicle movement, microphone talk in multiplayer, weapons/ammo ratios (and not being able to carry 10 or so weapons and thousands of rounds of ammo all at once), being able to design your own levels, and the whole blend of Single Player/Multiplayer/Deathmatch modes.
      2. They ran on Apples, and were so big there that many people actually complained about how there was notihng in gaming for the PC as good as for the Apple. (There were other games, such as Myst and Armor Alley contributing to this effect too, I'm not saying it was all Marathon, but Myst and Bungie doing ports to Microsoft shifted the whole gaming scene away from Apple over just a couple of years).

      Halo was supposed to be the updated version of those, going to a fully 3D engine, and it delivered an really exciting story with a giant ring around a planet, a weapon that could destroy whole worlds, and A.I. systems that would burn themselves out in 3 years or so just through being so ubersmart (and you had to hope the one you were relying on got you through the next scenario before it popped). And for the first time, there was a version for the X-Box and you didn't ahve to have an Apple Mac!

      --
      Who is John Cabal?
  3. What? by Nemyst · · Score: 3, Interesting

    Minecraft is a PC game first and foremost. The console versions are watered down, limited, pale imitations at best. Microsoft is no longer a PC-centric games publisher (long gone are the days of Age of Empires...). The match makes frankly very little sense, which is why it worries me that it just might happen, and it'd probably cause a massive exodus of the modding community. You can bet that MS wouldn't want dirty modders reverse-engineering their new property's code, and yet destroying the modding community would spell the doom for Minecraft.

  4. Umm... WHY??? by Sycraft-fu · · Score: 5, Insightful

    I mean seriously, why would you want Mojang? Minecraft itself has already made most of its money. You'd never make $2 billion on it going forward, it's big sales have already happened. So you'd be buying the talent/IP for future games... ya, about that. Mojang seems to have little or nothing at all in the pipe to speak of. 0x10c has gone all of nowhere, Scrolls has very little interest anymore and that's about it.

    When you look at Minecraft, particularly what it started as, where it came from (Infiniminer) and how much has come form community contribution, it is fairly apparent that Notch is not some genius game designer, he just had the right idea at the right time, and got lucky that it went viral. Minecraft was not some amazing feat of design, it was a digital lego game that struck a chord with people. Fair enough, and he deserves his success, but that isn't the kind of thing worth buying in to, particularly given 0x10c's complete lack of development.

    I can't see what MS hopes to gain. Maybe the Minecraft name? I guess, in theory, that is worth some money but I don't really think so. I think people will happily play a good builder game, regardless of title.

    Just seems like a bad use of money to me.

    1. Re:Umm... WHY??? by Sycraft-fu · · Score: 4, Informative

      Off the top of my head DirectX, Visio, Internet Explorer, Bungie, and Wininternals all worked out very well for them. Not saying you personally like all the products there, but they were all commercially successful in a number of ways.

    2. Re:Umm... WHY??? by Hadlock · · Score: 4, Interesting

      Imagine you can leverage off of their existing user base, your minecraft character becomes your xbox equivilent of a "Mii", and now you have a 3D avatar in a 3D world you can legitimately interact with. Did you not read Snowcrash? This is Snowcrash. Someone bootstrapped the 3D virtual world we've been promised since the 1980's (and failed at with Second Life) and now Microsoft will own it. And will integrate it in to your living room and cell phone.
       
      P.S. Go read Snowcrash by Neal Stephenson

      --
      moox. for a new generation.
    3. Re:Umm... WHY??? by aliquis · · Score: 4, Funny

      But Microsoft will do their own incompatible version.

      And then refuse to go on.

      And people will call it Minecraft 6 and use it for 5+ years even though it's outdated and nasty.

    4. Re:Umm... WHY??? by Sez+Zero · · Score: 3, Interesting

      I mean seriously, why would you want Mojang?

      Maybe they don't want to buy it, they just want to leak a salacious story on the day some other company had big news?

    5. Re:Umm... WHY??? by n3r0.m4dski11z · · Score: 4, Informative

      "it is fairly apparent that Notch is not some genius game designer, he just had the right idea at the right time, and got lucky that it went viral. Minecraft was not some amazing feat of design, it was a digital lego game that struck a chord with people."

      Have you even played the game for more than 5 minutes? it had more depth and FUN my first hour playing it than all the games in the last ten years of gaming combined! Plus, kids fucking LOVE it. Southpark was bang on with its observation that everyone under 16 (maybe 20 now?) has played it and enjoyed it. If he's not a "genius" in some sense, with millions of accounts (paying like $25 each), then what the fuck dude, who the hell is?
      He had the right idea at the right time, just like every other inventor in history. Nothing "genius" or not "genius" about it. Minecraft is an amazingly deep and thoughtful game, that is still getting free updates years after its release!

      He is actually quite humble in the interviews I have read about him such as this one:
      http://www.newyorker.com/tech/...

      Minecraft is THE cult game of the last 10 years. The spinoffs, youtube channels, mods, servers, real life products, halloween costumes, t shirts... the list goes on and on. Minecraft steve, a creeper or other characters are easily as recognizable as mario, or a disney character to children these days.

      There is a TONNE of value with the minecraft brand. Missing that means you are not in touch with the youths! and you lose at your evaluation of the situation.

      --
      -
  5. Licenses by Anonymous Coward · · Score: 5, Insightful

    Not just software licenses. Licenses to print sticker, to make kids' notebooks and BMX bikes and a billion other shitty things from China with Minecraft-branded content. It's the brand they want- probably don't give a shit about the game itself.

    1. Re:Licenses by Charliemopps · · Score: 3, Informative

      Right... my kids never played the game, he can't do WASD yet because he's only six. He's never seen a show about it and doesn't even know what it's about. But he has a minecraft Tshirt, lunchbox and a couple of toys and regales me with Tales of Creepers and Zombies. I've no idea what kind hallucinogenic crack Notch put in that game but it seems to be particularly effective on small children.

  6. Dear God, no by Trogre · · Score: 4, Insightful

    Why do these successful companies allow themselves to be bought up by behemoths who almost never improve upon them? Is it just so the current owners can retire?

    Especially Microsoft, whose modus operandi has been shown again and again to be embrace, extend, extinguish.

    --
    "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
    1. Re:Dear God, no by Bonobo_Unknown · · Score: 5, Insightful

      We all work so that we can pay the bills. If we're given an opportunity to sell something we've made for the option of never working again but living in luxury for the rest of our lives why not take it? That gives security, and the option to go on and do bigger and better things that 2BN dollars can provide. It's a dream come true.

      --
      We don't believe in radical loony monotheistic religions from the middle east -- we're Christians.
  7. Re:Down the Drain by smaddox · · Score: 3, Insightful

    For $2 billion? 20 years of current revenue? For a video game? Sounds pretty brilliant to me.

  8. Re:wot? by Anonymous Coward · · Score: 3, Interesting

    I've paid attention to what Mojang has been doing because I used to play Minecraft a lot. I didn't even know Scrolls or Cobalt were out. I thought they were still in development, along with 0x10c or whatever it was called before development stopped on it. I found out all of these status updates from this article, today.

    "1 trick pony" is correct. They have not done any further successful tricks. (This sell-out to Microsoft will probably increment that, but in the "hooker" way.)

    I think it's tremendously smart for Notch to cash in on his Minecraft empire while it's still worth $2 billion. It's a shame that he's selling the whole company, rather than just selling off Minecraft as a subsidiary asset-wrapper. (If you're unfamiliar with the concept, it's a way to avoid the insane legal idiocy of transferring assets while still transferring assets. You assign the asset to a subsidiary, then sell the subsidiary in a buy-out process rather than doing a direct asset sale. It cuts a lot of stupid red tape and saves on capital gains taxes.)

    Microsoft is tremendously dumb for spending $2 billion on a game and a name that will never pay off for them. Minecraft is a 5 year old game and is unlikely to grow, spin-offs and sequels are unlikely to do anywhere near as well, and merchandise is already showing up at dollar stores. It's not worth $1 billion anymore, much less 2. Their investors are gonna be pissed.

  9. I was promised "some sort of open source" by Truth_Quark · · Score: 4, Informative

    Oh, hard luck Microsoft, you've just run afoul of my country's fair trading act.

    Part of my purchase decision was that Minecraft would be released open source or public domain.

    You've just purchased some very high punitive fines.

    Once sales start dying and a minimum time has passed, I will release the game source code as some kind of open source. I'm not very happy with the draconian nature of (L)GPL, nor do I believe the other licenses have much merit other than to boost the egos of the original authors, so I might just possibly release it all as public domain.

    1. Re:I was promised "some sort of open source" by Richard_at_work · · Score: 4, Insightful

      Good luck taking some vague hand wavy statements as evidence in any court case or consumer complaint. So, did he ever outline what a "minimum time" would be? 10 years? 50 years? His lifetime?

      If its not written into the license you received when you purchased the product, its all too easy to dismiss in court.

  10. Isn't it a little bit obvious? by gaboalonso · · Score: 4, Interesting

    MS is trying to have a say in the VR game and they think Minecraft would be a nice entry point.

  11. Ho Hum... by hambone142 · · Score: 4, Insightful

    Microsoft is a dying old fart company, much like Hewlett-Packard. What they can't earn with innovation is being replaced with attempted acquisitions. Unfortunately, all that they acquire is typically destroyed with no revenue to the bottom line. Acquire, lay off the people, destroy, forget. Management by "bean counters" vs. the ability to invent. Sad but the state of large cranky corporations of the day.

  12. Billionaire and no he doesn't need the money by Sycraft-fu · · Score: 4, Insightful

    But funny thing about money, people always want more.

    1. Re:Billionaire and no he doesn't need the money by thegarbz · · Score: 4, Insightful

      Once you have enough money, money is no longer money. For you and I money is something we use to get through life. Once you have enough money to no longer worry about anything for the rest of your life money takes another form entirely...

      Power. Sure you may be a multi-millionaire, but is that enough to get you a private dinner with the President? No? You and all your kids are free of any cash problems for your life, but are you on the cover of Time? No?

      Well clearly you need more.

    2. Re:Billionaire and no he doesn't need the money by bwcbwc · · Score: 3, Interesting

      Yeah, just on off-the-cuff calculations, say 30 million copies across all platforms,could be as high as 40 M, but PC is only 16-17 M. I'm not sure what cut Mojang gets from the non-PC versions after you take out the development costs and Xbox/PS platform royalties, but let's say that Mojang grossed about $20 per copy overall. This includes he alpha and beta sales that were for under $20 averaged with the higher costs now.

      This comes out to $600-$800 M before taxes, so after you factor in Minecraft Realms monthly fees and any income from Scrolls, you're probably somewhere around $1B in sales. I'm pretty sure there are more than 2 employees with equity in the company, and when you factor in Swedish income taxes, Notch is clearly not a billionaire in dollars.

      It's worth $2B to Microsoft, because they can milk the Minecraft cow for at least that much by merchandising paraphenalia and movies, Minecraft Realms is also an ongoing cashflow. Oh, and I bet they institute a monthly fee for Minecraft Server.

      Apart from the money, I think Notch is really selling because he's sick of the BS of running a company: Bethesda suing them over scrolls, parents suing them over exploitative MC servers....etc.

      --
      We are the 198 proof..
  13. Server-side vs. client-side by Mal-2 · · Score: 5, Insightful

    Another issue is that enabling server-side mods means players don't have to buy anything at all. I didn't have to pay for the mods, but even if I did, me paying once would be far cheaper than players having to buy them individually.

    I had all sorts of things on my server -- giants, creepers started fires, skeleton arrows could blind you, spiders could poison you, zombies could make you hungry and/or cause the Wither effect, nearby explosions would cause you to become dizzy, there were "space zombies" with glass helmets and 5x the health wandering around (in the Nether too). Monsters would target you from 27 blocks away rather than 16. There were Elementals, invisible monsters, and flying carpets. I also nerfed the enchantments to reduce the power differences between well-equipped and just-starting-out players. That way I didn't have to crank the difficulty up quite as high, and the n00bs could live a little longer. There were shops, and there was an economy. We had mcMMO. We had trading posts stocked with villagers. We had minecarts on the backs of bats, so you could ride in a random aerial pattern if you felt like it. We had bouncy blocks that would catapult you into the air. I added drops (for example, blazes would drop quartz, and magma cubes could drop regular slimeballs). One of my admins made uncraftable blocks such as circle stone and packed ice expensive but available through stores.

    The effect of any one of these mods was minor, but taken as a sum, they made up an environment unlike any other Minecraft server. What was the player required to do to enable all of these changes? Absolutely nothing. Just sign on and play.

    This is anathema to the DLC business model. Therefore, it can't be monetized by the company producing the game. Mojang was OK with that. (I wasn't running Pay-To-Win.) Microsoft most likely won't be.

    --
    How is the Riemann zeta function like Trump rallies? Both have an endless number of trivial zeros.