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Microsoft Likely Buying Minecraft for $2 Billion
That is $2,000,000,000.00 USD, for the record.
“The two companies quickly agreed on a framework and approximate price and have been working out the details since”, the Bloomberg report states. “Persson will help out with the transition, though he is unlikely to remain beyond that”.
The Kotaku article comments spend a lot of time questioning the wisdom of the move on Microsoft’s behalf, and I am inclined to agree. Hasn’t Minecraft reached the saturation point yet? Well, at $100 million in profit last year, maybe not. Still, it was originally hard for me to see the endgame here for Microsoft. In-game DLC? Pixelated horse armor? Banner ads on the title screen?
It is apparently much simpler than that: Microsoft is buying customers.
But Mr. Nadella has said that Microsoft views videogames as a way to expand the company’s footholds in PCs and mobile phones. In a letter to employees in July, Mr. Nadella called gaming the “single biggest digital life category, measured in both time and money spent, in a mobile-first world.”
[…] “Minecraft” could also help Microsoft appeal to a new generation of customers, especially on smartphones where Microsoft has struggled with both its homegrown Windows Phone devices and with apps on rival phone systems.
While there are other articles out there stating that Notch would never sell, the information we seem to have now is that, despite Notch having turned down similar offers in the past, it appears he is willing to sell this time around. Good for him. If you are wondering at what price point I would sell out to The Man, $2 billion is plenty. Hell, I’d settle for $2 million.
Especially if it meant I could just go do something else immediately. Or stop before I turned into another M. Night Shamamalamalan.
Xbox One Eighty
I take no credit for either the title nor the picture:
Sort of like SimCity’s “cloud computing.”
If you had not already felt the Earth’s sudden wobble from the magnitude of Microsoft’s about-face, allow me the pleasure of informing you: the Xbox One no longer has its ridiculous DRM. Namely:
- No internet connection is required to play games.
- No 24-hour online check-in.
- You can buy/sell/gift/rent/lend game discs just like on the 360.
- You can purchase digital versions of games on Day 1 and play offline (once downloaded).
One of the “casualties” of this Lance Armstrong-level backpedaling is that you can’t have that whole “10-person family sharing” plan or the ability to “take your games anywhere by logging in.” Often lost amongst the Apologist tears though was the simple fact that logging on from a friend’s Xbox One basically meant you would have had to wait for a 10+ GB download before playing anyway. And what were the odds that more than one member of the family could play the same game at the same time? In other words, you are not any worse off than the present system of just taking the disc with you.
Plus, you know, used games.
On a semi-related bit of interesting news, apparently Valve snuck some interesting code into the Steam software: shared libraries, e.g. lending digital games. Obviously nothing is formally implemented yet, but the premise seems to be that once you lend a game to a friend, they can play it until you log on to play it yourself (which then bumps them off). Which is… pretty remarkably clever if you think about it. Valve could just as easily went the other way, where you couldn’t play until your friend “gave it back,” which would probably discourage people from using the feature at all. Assuming there is no transaction fee or anything, I would feel comfortable giving one or two of my Steam buddies access to everything.
Regardless of which way the shared library plays out – if it plays out at all – today was a huge win for consumers everywhere. I am not quite ready to declare victory yet, but the future sure is looking considerably brighter than it was, oh, two weeks ago, eh?
Beach and the PS4
So, I have been and will continue to be on vacation at the beach with family until the end of the week. The internet service down here is absolutely abysmal – we’re talking 5 Mbps shared across 40 rooms – which is why I have not been on top of the comments and general news. I suppose that might sound bad, caring about frivolous internet things while at the beach. But honestly, if I knew it was going to be vacation back to 1994, I might have passed. Also, the ocean seems saltier this year and there was a fly in my soup.
That said, how ’bout that PS4 news?
If you have not been keeping abreast of the latest developments, Sony basically “won” the show. You can read Liore’s coverage of the event or even similar things in this CNN article. Bottom line?
- No new restrictions on used game sales.
- No internet connection required.
- $399 vs Xbox One’s $499
It wasn’t all good news – a Playstation Plus membership is required for all multiplayer, just like Xbox Live today – but it was a fantastic PR coup for Sony to have been quiet all this time before launching into these consumer-friendly revelations.
A couple Apologists skeptics from around the web have tried to paint Sony with the Xbox One brush over the used games quote though:
“The DRM decision is going to have to be in the hands of the third parties. That’s not something that we’re going to dictate or mandate or control or implement.”
“Aha!” the Apologists cried. “Same thing as Xbox!”
Not really. In fact, not at all. The key point here is that Sony’s strategy is unchanged from the current generation. Remember Online Passes? Those were 3rd party attempts at mitigating secondary game sales, all of which happened in this generation. If EA suddenly changes their mind vis-a-vis reintroducing Online Passes, Sony isn’t going to stop them, but at least it isn’t turned on by default as it is in the Xbox One scenario. As Destructoid put it:
The major difference between PS4 and Xbox One, of course, is that Sony hasn’t made it easier for corporations to control the behavior of their customers, because the PS4 doesn’t tie your copies to your accounts, or initiate checks to scrub traded game data off your system. Basically, Microsoft designed the Xbox One to make it as easy as flipping a switch to eradicate any possibility of sharing your games, while Sony is maintaining its policy of this current generation.
Or you can go with the Game Front article for even further clarification:
“The Online Pass program for PlayStation first-party games will not continue on PlayStation 4. Similar to PS3, we will not dictate the online used game strategy (the ability to play used games online) of its publishing partners. As announced last night, PS4 will not have any gating restrictions for used disc-based games. When a gamer buys a PS4 disc they have right to use that copy of the game, so they can trade-in the game at retail, sell it to another person, lend it to a friend, or keep it forever.”
This is good news for gamers, indeed. In a nutshell, you can buy a used single-player game for the PS4 and play it all you want. If you want to go online with it, you may have to deal with some sort of publisher-determined DRM, be it an Online Pass or whatever.
Basically: #PS4Life
Not that I’m going to buy one anytime soon – I just bought a PS3 last Christmas. But it’s nice to know that whenever I do hop aboard the next console generation, I will have the opportunity to catch up on all the games I’ve missed by hitting up Amazon or some local place and not be paying full MSRP out the ass for 2+ year old games.
In An Age 
Crushing Success
Sep 18
Posted by Azuriel
The final tally for Microsoft’s purchase of Minecraft is $2.5 billion. Markus Persson’s (aka Notch) personal take is reported to be $1.8 billion.
What is almost more interesting though is his thought process behind selling at all:
It is almost funny, in a way. Can you separate the making of games from the business of making games? One can imagine some hobbyist painter who inadvertently crafts a masterpiece… that simply stays in the attic for decades. Or a writer who simply creates a book for themselves. The process is what they desired, not the outcome.
But games? Like information, games yearn to be free. A game without players is incomplete. So while I can understand the sentiment behind Notch’s desire, it seems somewhat futile. Being a game designer does not make one a good entrepreneur, true, but once released a game takes on a life of its own.
I will admit that my first reaction was to be a little petulant over Notch’s payout, because $1.8 billion. But looking at Minecraft itself and how it got there… who can really complain? This isn’t a game that preys on the weaknesses of the human psyche with microtransactions and cash shops (in the base game). This isn’t a game built around its business model. This is Old School purity in which a game relied on its own merits to sell more units. Sure, there is merch and movie deals these days but the core of the game remains the same.
So… good on you, Notch. This sale puts you around #1013 on Forbes’ billionaire list. Or to put it another way, Minecraft single-handedly made you equivalent to 2-3 JK Rowlings. Or about a Gabe Newell and a half.
Crazy world.
Posted in Commentary, Philosophy
6 Comments
Tags: Crushing Success, Microsoft, Minecraft, Notch, Purity