Product details

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Authors: Sushree Das
Published by: Amity Research Centers
Published in: 2014
Length: 10 pages
Data source: Published sources

Abstract

In September 2014, Microsoft announced its acquisition of Mojang, the developer of the popular video game, Minecraft for $2.5 billion. Minecraft became an absolute cultural ‘phenomenon’ which included people of all age groups. Analysts considered the acquisition as a profitable deal for Microsoft. They claimed that Minecraft was a game which offered the opportunity for players to constantly develop themselves. The game was a colossal hit and reportedly generated nearly $350 million per year. It also registered a total viewership of 2 billion players within a short span of time since 2012. By acquiring Minecraft, Microsoft got the keys to one of the biggest games in the world. However, the deal had quite a number of challenges apart from synergies. For Microsoft, a major objective behind acquiring a smaller company such as Mojang, was that it was in sync with Microsoft’s growth ambitions. In addition, the acquisition was aimed at attracting users onto its obscure mobile platform than its well-known PC system or Xbox game console. Still, there were apprehensions that Minecraft’s spirit of independence might be lost after the deal went through. Besides, there were chances that Microsoft could face the backlash from players, if it withdrew Minecraft from its rival systems. In the light of these, whether Microsoft made the right strategic move by acquiring Mojang remained to be seen.
Industry:
Size:
Global
Other setting(s):
2014

About

Abstract

In September 2014, Microsoft announced its acquisition of Mojang, the developer of the popular video game, Minecraft for $2.5 billion. Minecraft became an absolute cultural ‘phenomenon’ which included people of all age groups. Analysts considered the acquisition as a profitable deal for Microsoft. They claimed that Minecraft was a game which offered the opportunity for players to constantly develop themselves. The game was a colossal hit and reportedly generated nearly $350 million per year. It also registered a total viewership of 2 billion players within a short span of time since 2012. By acquiring Minecraft, Microsoft got the keys to one of the biggest games in the world. However, the deal had quite a number of challenges apart from synergies. For Microsoft, a major objective behind acquiring a smaller company such as Mojang, was that it was in sync with Microsoft’s growth ambitions. In addition, the acquisition was aimed at attracting users onto its obscure mobile platform than its well-known PC system or Xbox game console. Still, there were apprehensions that Minecraft’s spirit of independence might be lost after the deal went through. Besides, there were chances that Microsoft could face the backlash from players, if it withdrew Minecraft from its rival systems. In the light of these, whether Microsoft made the right strategic move by acquiring Mojang remained to be seen.

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Industry:
Size:
Global
Other setting(s):
2014

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