What's Happening?
In 2014, Microsoft acquired Minecraft and its developer Mojang for $2.5 billion, a deal that has since proven highly successful as Minecraft remains one of the top-selling games globally. However, Activision
was also in the running to purchase the game. Former Activision executive Bobby Kotick revealed on a podcast that they offered $1.5 billion for Minecraft but were deterred by the potential departure of key Mojang staff, including founder Markus 'Notch' Persson. Microsoft, on the other hand, managed to secure the deal by offering a higher price and incentives to retain Mojang employees.
Why It's Important?
The acquisition of Minecraft by Microsoft has had significant implications for the gaming industry. It solidified Microsoft's position in the gaming market and allowed them to leverage Minecraft's massive user base for further business opportunities. Activision's failure to acquire Minecraft represents a missed opportunity to expand its portfolio with a highly lucrative and influential game. This event highlights the strategic importance of talent retention and competitive bidding in high-stakes acquisitions.
What's Next?
While Minecraft is now part of Microsoft's portfolio, Activision has since been acquired by Microsoft in a separate $75.4 billion deal. This acquisition brings Minecraft indirectly under Activision's umbrella, albeit through Microsoft's ownership. The focus now shifts to how Microsoft will continue to develop and expand Minecraft's universe, potentially integrating it with other gaming properties under its control.
