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 game has sold to more than 54 million copies. It allows players to create structures using retro Lego-style blocks. They can also explore large maps and battle other players.
The deal was announced by Xbox chief Phil Spencer.
Mojang, the company's founders promised that their fans that everything would be fine.
Some analysts have speculated that the deal is designed to draw more customers to Microsoft's Windows Phone devices.
The acquisition comes a year after Microsoft purchased the handset and devices division of Finnish mobile phone firm Nokia.
Minecraft is among the top-selling apps on both Apple's iOS store as well as Android's Google Play, and has recently been made available for the Xbox One and PlayStation 4 which has further increased sales.
In the month of March it was the third most played console game according to market research firm NPD Group, despite being in the market for a short time.
Mojang, the game's creator was founded in 2009. It made more than $100 million in the last fiscal year and has about 40 employees.
Microsoft announced that the Mojang team will join its game studio which is responsible for titles such as Halo, Forza and Fable.
The tech giant's chief executive, Satya Nadella, said: "Minecraft is more than an excellent game franchise. It is an open world platform, powered by a vibrant community that we cherish and brimming with exciting opportunities for that community and for Microsoft."
Opposition to the sale
Mojang's founder, Markus "Notch" Persson, has previously criticised Microsoft, and commented to Reuters that the market for Windows phones was "tiny" and not worth developing apps for.
Minecraft has a huge and enthusiastic fan base, many of whom have expressed anger over what they believe is a corporate takeover of a communally-spirited independent company.
"Makes me sick, and sad," wrote one user on a renowned Minecraft forum. "It could kill the gaming community,"" EvilBatsu added.
Others expressed concern about whether their skills would be shown by their fans.
"It will not just cost more to play the game, but it could also cause people to lose their jobs." Many people play Minecraft and upload it to YouTube as their career however, when Microsoft takes over there will for sure be copyright issues."
However some enthusiasts have suggested that Microsoft could dedicate more resources to expanding and upgrading the game.
In an announcement, Microsoft said it would maintain Minecraft across all of its existing platforms, with a "commitment to nurture and expand it long into the future".
It also stated that the acquisition was expected to be concluded at 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 the community you are part of are vital to everyone involved. If you take anything away from this post then let it be this."
In relation to Microsoft, Mojang said: "There are only few potential buyers with the resources to grow Minecraft to the scale it deserves."
The company also stated that "Notch" has decided that he "doesn't want to be a part of an enterprise of such global significance".
Developer Notch on selling Minecraft:
"I've become an icon. I do not want to be a significator, responsible for something huge that I don't know and do not want to work on, that constantly comes back to me. I'm not an entrepreneur. I'm not a CEO."
You can read his complete statement here
Why Minecraft?
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James McQuivey of analytics firm Forrester said that "Minecraft is among the most popular gaming properties around the globe".
"Not only is it profitable but it continues to grow in profits years after its release, mostly because of the ardent player base that invests in the creation of their own Minecraft worlds.
"That helps to explain why Microsoft would be interested in Minecraft and would want to ensure that it's available on Microsoft's gaming platforms.
Professor Mark Skilton from Warwick Business School said that the acquisition was about building a robust customer base for Microsoft.
"The online gaming industry is fast moving from niche collective enthusiast to mass market , and Minecraft is a natural progression as big business follows the numbers of traffic in the digital world."
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