Microsoft Deals for ‘Minecraft’ Now Apparently of $2.5 Billion: Will the Venture Payoff?

Have you heard of the Mojang’s Minecraft yet? Actually, it’s on the PC, PlayStation, Xbox, iPhone, iPad, and Android devices for beginners. In total, it has sold over 54 million copies. Previous week, signifies that Microsoft wanted to purchase the developer studio and the game for $2 billion, a report stated.

According to the most recent report published in Saturday claims that the purchase amount is truly higher than $500 million. Most of us are speculating why Microsoft would use up such huge amount of money for just a sole game franchise.

It has been reported by the sources with Reuters, the Microsoft will declares a $2.5 billion purchase of Mojang on Monday. Moreover, it seems to be the deal larger than Facebook’s acquisition of Oculus Rift for $2 billion held in July.

But the questions arising with this deal is why would Microsoft spend such a large amount of money on a single game? Some suppose this has less to do with the Xbox platforms and more to do with its mobile strategy for Windows Phone and Windows 8 tablets like the Microsoft Surface.

The Mobile Market

Dave Bisceglia, Chief Executive of independent game studio Tap Lab said, “It seems like Microsoft is looking at Mojang and Minecraft as a way to tap into this enormous cultural phenomenon. If you look at iOS, ‘Minecraft’ has been a top-grossing game for quite some time, if Microsoft could on Windows phones give players a unique and compelling experience that you can’t get on the other platforms, that could be a driver to sell devices to existing ‘Minecraft’ fans.”

Nomura analyst Rick Sherlund in a note to clients this week, “We don’t view this acquisition as a signal of Microsoft’s intent to double down on Xbox but consider it an attempt to better address mobile on a cross-platform basis. This also appears to be consistent with (Microsoft) CEO Satya Nadella’s mobile and cloud strategy.”

The mobile segment is Minecraft’s greatest growing base. Mojang’s Jens “Jeb” Bergensten discovered that the Pocket Edition passed the 21 million sold mark back in April.

The PocketEdition of Minecraft has been sold more than either the PC version or the console version. Though, that’s a fall in the bucket compared to the total number of smartphone and tablet users worldwide. 1.75 billion People worldwide are expected to use a smartphone in 2014, according to the report from research firm eMarketer. According to Tab-Times, in the meantime, the total number of tablet users reached an expected 285 million.

It seems that the potential for Minecraft in the mobile space is hefty; however it’s vague how the game will help out Windows mobile devices. Windows smartphones from Nokia and HTC are just as prevailing and packed with features as its Android and Apple competition. Yet, the devices have required both the “cool” factor of the other devices, the large marketplace of apps and app developers, and broad support from all the major carriers. Windows Phones sit in a very far third with less than 3% of the smartphone market as a result, and its market share is in fact contracting, as Phone Arena mentions. Minecraft on Windows devices could help, but it won’t solve these issues on its own.

A Platform and a Brand

Microsoft may actually get with Minecraft as it does seem to be a popular platform that can span the PC, Xbox, and mobile devices. Moreover, it will own the brand that can expand into toys, books, and possibly even movies.

On the toy front alone, the LEGO Cuusoo Minecraft Micro World Sets have been so admired that LEGO is converting them into full-grown usual size sets. Six LEGOMinecraft sets will strike stores this November; as LEGO declares just this past Thursday.

It looks dodgy that Microsoft would be able to compel the support of Minecraft: PlayStation 4 Edition, PlayStation 3 Edition, and PS Vita Edition. This doesn’t mean that future versions of Minecraft will be available on its competitor’s consoles though.

Any deal for Minecraft will likely not include Notch, The Inquisitr previously reported. The maker of the huge hit has not dynamically been implicated in its development since 2011 and will supposedly head off once the possession of Mojang and Minecraft transitions to Microsoft.

Microsoft is perhaps looking at Minecraft as a franchise most likely in the same way that Nintendo seems at Super Mario as a franchise. Though, it is a game with an apparently unlimited amount of growth and attraction to both children and adults. On the other hand, it’s shocking that Microsoft didn’t go for such deal earlier to Minecraft launching on the PlayStation platforms, although now the question is will the $2.5 billion venture payoff.