Microsoft announces purchase of Minecraft creator Mojang for $2.5 Billion
Minecraft to Join Microsoft
Microsoft Corp. today announced it has reached an agreement to acquire Mojang, the celebrated Stockholm-based game developer, and the company’s iconic Minecraft franchise.
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.
Available across multiple platforms, Minecraft is one of the most popular video games in history, with more than 100 million downloads, on PC alone, by players since its launch in 2009. Minecraft is one of the top PC games of all time, the most popular online game on Xbox, and the top paid app for iOS and Android in the US. The Minecraft community is among the most active and passionate in the industry, with more than 2 billion hours played on Xbox 360 alone in the past two years. Minecraft fans are loyal, with nearly 90 percent of paid customers on the PC having signed in within the past 12 months.
“Gaming is a top activity spanning devices, from PCs and consoles to tablets and mobile, with billions of hours spent each year,” said Satya Nadella, CEO, Microsoft. “Minecraft is more than a great game franchise – it is an open world platform, driven by a vibrant community we care deeply about, and rich with new opportunities for that community and for Microsoft.”
“The ‘Minecraft’ players have taken the game and turned it into something that surpassed all of our expectations. The acquisition by Microsoft brings a new chapter to the incredible story of ‘Minecraft,’” said Carl Manneh, CEO, Mojang. “As the founders move on to start new projects, we believe the high level of creativity from the community will continue the game’s success far into the future.”
Microsoft plans to continue to make Minecraft available across all the platforms on which it is available today: PC, iOS, Android, Xbox and PlayStation.
“‘Minecraft’ is one of the most popular franchises of all time,” said Phil Spencer, head of Xbox. “We are going to maintain ‘Minecraft’ and its community in all the ways people love today, with a commitment to nurture and grow it long into the future.”
More details will be available upon the acquisition closing.
Message by Phil Spencer, Head of Xbox
Today is an incredibly exciting day for our team as Mojang and the Minecraft franchise join Microsoft. Minecraft is one of the most popular video games of all time, with more than 100 million downloads, on PC alone, from players since its launch in 2009. Minecraft inspires millions to create together, connects people across the globe, and is a community that is among the most active and passionate in the world.
Our relationship with Mojang began when we initially talked to the team about bringing Minecraft to the console. Minecraft quickly became the top online game on Xbox Live, with over two billion hours played on Xbox 360 in the last two years. That working relationship set the ground work for other opportunities. We’ve long seen the incredible potential of Minecraft.
At Microsoft, we believe in the power of content to unite people. Minecraft adds diversity to our game portfolio and helps us reach new gamers across multiple platforms. Gaming is the top activity across devices and we see great potential to continue to grow the Minecraft community and nurture the franchise. That is why we plan to continue to make Minecraft available across platforms – including iOS, Android and PlayStation, in addition to Xbox and PC.
The Minecraft community is passionate and diverse, ranging across all ages and demographics. We respect the brand and independent spirit that has made Minecraft great, and we’ll carry on the tradition of innovation to move the franchise forward. Our investments in cloud, Xbox Live and mobile technology will enable players to benefit from richer and faster worlds, more powerful development tools, and more opportunities to connect with the Minecraft community.
We’re excited to confirm that MINECON will continue next year. We’ll look to create even more ways for the vibrant community of YouTuber’s, innovators, bloggers and players to connect with each other – both in person and online. We will have much more to share in the coming months.
The Minecraft team’s unique vision, creative energy and innovative mindset make them a perfect fit alongside our other global studios. Microsoft Studios includes 343 Industries, Turn 10 Studios, and Lionhead Studios just to name a few. These industry-leading game studios within Microsoft that have had great success with beloved games and massively popular franchises like Halo, Forza, and Fable. We’re excited to welcome Mojang to the Microsoft family and we are thrilled to support the success and longevity of Minecraft for years to come.
Yes, the deal is real. Mojang is being bought by Microsoft.
It was reassuring to see how many of your opinions mirrored those of the Mojangstas when we heard the news. Change is scary, and this is a big change for all of us. It’s going to be good though. Everything is going to be OK. <3 Please remember that the future of Minecraft and you – the community – are extremely important to everyone involved. If you take one thing away from this post, let it be that. We can only share so much information right now, but we’ve decided that being as honest as possible is the best approach. We’re still working a lot of this stuff out. Mega-deals are serious business.
• Why did you sell Minecraft?
Minecraft has grown from a simple game to a project of monumental significance. Though we’re massively proud of what Minecraft has become, it was never Notch’s intention for it to get this big.
As you might already know, Notch is the creator of Minecraft and the majority shareholder at Mojang. He’s decided that he doesn’t want the responsibility of owning a company of such global significance. Over the past few years he’s made attempts to work on smaller projects, but the pressure of owning Minecraft became too much for him to handle. The only option was to sell Mojang. He’ll continue to do cool stuff though. Don’t worry about that.
There are only a handful of potential buyers with the resources to grow Minecraft on a scale that it deserves. We’ve worked closely with Microsoft since 2012, and have been impressed by their continued dedication to our game and its development. We’re confident that Minecraft will continue to grow in an awesome way.
Minecraft means many different things to millions of people across the world, and to each and every Mojangsta. We feel that this is the best way for everyone – you guys included – to benefit.
• What about the other editions of Minecraft? Will they stop being developed?
There’s no reason for the development, sales, and support of the PC/Mac, Xbox 360, Xbox One, PS3, PS4, Vita, iOS, and Android versions of Minecraft to stop. Of course, Microsoft can’t make decisions for other companies or predict the choices that they might make in the future.
We’re extremely proud of all editions and the awesome things you have achieved through playing together.
• Is the game going to change? Will we still be able to make videos, mods, awesome builds, and all the cool stuff we’ve created over the past few years?
Minecraft will continue to evolve, just like it has since the start of development. We don’t know specific plans for Minecraft’s future yet, but we do know that everyone involved wants the community to grow and become even more amazing than it’s ever been. Stopping players making cool stuff is not in anyone’s interests.
• What about the Mojang staff? What’s happening to you guys?
Though it’s too early to confirm which of us will continue working on Minecraft or other projects, we predict that the vast majority (if not all) Mojangstas will continue to work at Mojang for the time being.
The founders: Notch, Carl, and Jakob are leaving. We don’t know what they’re planning. It won’t be Minecraft-related but it will probably be cool.
• What’s happening to the other Mojang projects, like Scrolls?
We don’t know yet. We’ll share any news as soon as we do.
• Will you still be able to tweet about features and interact with the community on a personal level, just like you’ve done over the years?
Yes! That’s not going to change.
• How much money was the company bought for?
Microsoft acquired Mojang for a smooth 2.5 BILLION dollars.
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.