Minecraft is the digital Lego game that everyone has heard of – even your children’s grandparents. Suitable for children and adults alike, it offers a range of possibilities for play. The brainchild of a company called Mojang, Minecraft was a major driving force behind Microsoft’s decision to buy-in.
But why did this multinational technological company purchase Mojang, and what are their intentions for the brand?
The Mojang Story
The Mojang and Minecraft story began in 2009 with a man called Markus Persson who quit his job as a developer and focused on building his own game. The premise was simple: people would be able to dig and collect resources in randomly generated worlds, and break blocks. He called this game initially Cavegame – but would go on to change it to Minecraft.
Around this time, Mojang was created by Persson, together with his friend Jacob Porser. The two of them would go on to develop, sell and release the highly successful Minecraft. At the time of the Microsoft buyout in 2014, they were selling 50 million copies per month.
Going on to be listed on the New York Stock Exchange, Mojang provided unlimited opportunities for investors looking at tax-free investments, with a share price that continued to rise.
The Microsoft Buyout
Microsoft doesn’t really make a habit of buying up large gaming companies and has shown no interest in any of the others on the market, so what made Mojang so different?
Despite Mojang remaining a small company, the buyout from Microsoft wasn’t insignificant. It cost them $2.5 billion to buy the entity, and it indeed could have snapped up other gaming companies much more cheaply.
However, Microsoft was keen on pursuing them, and experts believe that it was because it wanted its younger demographic.
Mojang’s name is synonymous with Minecraft, an online game whose star is rocketing and shows no sign of slowing. Minecraft is more than a game; there is an enormous global community built around the game, which could be just what Microsoft has been missing.
The company offers Microsoft a way into the younger market, which ties in with the Xbox, a console that is vital to Microsoft’s success. It also slots in nicely alongside Halo as a flagship product that will bring new players to the Xbox.
But it’s not just about the Xbox’s success; it’s also about cross-platform applications. Skype, also acquired by Microsoft, works right across every platform, as does Office. Minecraft has the same versatility, working with Android, iOS, and desktop.
A Success Story
While the economy is in a turbulent state at the moment, all the signs are that Microsoft and Mojang will continue to go from strength to strength.
Following the buyout in 2014, Minecraft sales jumped to 100 million by 2016. Despite Microsoft announcing that players using old technology would no longer be supported, sales have continued to rocket, doubling to 200 million by 2020. Currently, there are 126 million Minecraft players every month.
It’s not just the game itself that garners interest. Minecraft was the top-watched game on YouTube last year too, proving that Mojang created more than just a game, it made a community.
Looking what lies in 2021 and beyond, the Bill Gates founded company plans to merge the two names even more closely. Up until now, classic users had been able to continue to play Minecraft without a Microsoft account. From next year, that will no longer be the case as Microsoft embeds Mojang into its brand and puts it at the heart of its future strategy.
