Microsoft's Minecraft Buy: 6 Interesting Facts - InformationWeek

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Microsoft's Minecraft Buy: 6 Interesting Facts
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Michael Endler
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Michael Endler,
User Rank: Author
9/16/2014 | 11:51:57 AM
Re: Not risky?
It's a privately-held company, and the figure refers only to highest disclosed revenue, and that's from 2013 to boot-- so our insight into the company's current financials are limited. But I see your point. Given Microsoft's aggressive break-even estimate, I suspect they're factoring in more than pure Minecraft revenue--i.e. they might also be anticipating certain ecosystem benefits, such as the article's suggestion that they might use Minecraft to drive device sales.
stevew928
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stevew928,
User Rank: Ninja
9/16/2014 | 11:48:11 AM
Not risky?
I guess I'm wondering how they are going to break even in 2015, when their investment is nearly 7x Mojang's highest revenue. I'd guess that a majority of the people on all the current platforms who are interested in Minecraft have already purchased it. I suppose Microsoft could give it more exposure to pick up the stragglers... but 7x?

If they change the pricing model, I think they will face revolt from the community. A Minecraft 2 or annual subscription just isn't going to fly. If Microsoft expects any success, they need to keep things the same, not make drastic changes to Minecraft. It's success is largely in part to it's business model, indi nature, and slow stable growth in features contrasted with low system requirements.

The only place I see for big growth in revenue is in Minecraft servers (ie: Realms). If Microsoft does that really well, there is an opportunity there. But, they are already competing with some stiff competition in that market.

What actually would make most sense is if the purchase isn't intended to break even financially, but were intended to bring goodwill to Microsoft, especially with the younger generation. If they do really well for Minecraft, they might be seen more in those terms than as a hated has-been megacorp. That might be worth $2.5B. Otherwise, I'm just not seeing it unless I assume Microsoft has some failed strategy in mind.
danielcawrey
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danielcawrey,
User Rank: Ninja
9/15/2014 | 8:41:51 PM
Re: Azure for Minecraft services?
I had only heard about Minecraft previously on the peripheral I suppose, so I guess I never realized just how valuable the game might be. 

I am amazed with such graphics this could become so popular, but then again I think an open platform and an open world is something attractive to many. This will probably be a good investment for Microsoft over time. Smart move I suppose. 
Charlie Babcock
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Charlie Babcock,
User Rank: Author
9/15/2014 | 7:28:21 PM
Nadella's broadening move
Azure cloud services and Microsoft's hosted game engine are running on the same Azure infrastructure. This is a Nadella move to broaden Microsoft's appeal and collect a new group of users -- typical of the moves he's trying to make and probably quite good for Microsoft in the long run.
Michael Endler
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Michael Endler,
User Rank: Author
9/15/2014 | 4:29:59 PM
Re: Azure for Minecraft services?
Not sure how involved OneDrive will be, but I expect Azure will be running everything in the background. What that implies, aside from a potentially infinite digital canvas for gamers, I'm not as sure. What do reader think?
Thomas Claburn
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Thomas Claburn,
User Rank: Author
9/15/2014 | 4:27:53 PM
Azure for Minecraft services?
Do you think Microsoft will encourage Azure or SkyDrive usage to store Minecraft assets and power Minecraft in-game capabilities?


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