Microsoft Corporation (NASDAQ: MSFT) Xbox-Minecraft Deal: MSFT Reportedly To Buy Game Developer Umang For $2B, Refocus On PC Gaming. Markus 'Notch' Persson, maker of the immensely popular Minecraft game has been criticized by Minecraft fans for 'okaying' an acquisition deal between game maker Umang with tech giant, Microsoft after playing an important role as an outsider in the gaming industry. But now he may be having the 'last laugh' as the Micrsoft (NASDAQ: MSFT ) Umang deal will fetch Notch enough to make him a billionaire, say online media sources.
The New York Times said that the deal will be signed by the end of the month and will transition to new owners at Redmond in three months. Minecraft was recently updated for the Xbox One and the title is popular across platforms: PC, video console, and mobile device platforms. Last week, Minecraft was released for Microsoft Xbox One, making the game a huge hit among video gamers anticipating more real and variation-complexity based games. Minecraft was reported to be extremely addictive and bizzarely repetitive in nature, a trend that has been observed in successful video games recently.
Redmond is betting that it can boost sales of Xbox One and Minecraft by adding more games along with opening film and merchandising franchises. Nonetheless Persson has disappointed the mostly younger generation of Minecraft fans for bowing to Microsoft, viewed as a 'conglomerate' that may do not understand the Minecraft culture.
Earlier in the week, The Wall Street Journal reported Microsoft was in discussions to buy Swedish game maker, Majong, which is behind the creation of the 'hugely' popular video game, Minecraft. The purchase of Umang is an attempt to compete with Sony's (NYSE: SNE ) fierce PlayStation 4, console and CEO Nadella's commitment to the Xbox brand. Umang also makes in house PC games and mobile versions, which could assist Redmond in its refocus on PC gaming.
"Anyone want to buy my share of Mojang so I can move on with my life. Getting hate for trying to do the right thing is not my gig," Persson posted on Reddit, WSJ.com reports.
Fool.com reported, "Sources suggest Microsoft will not remove versions of the game from Sony's online store if the purchase goes through; but a hypothetical, exclusive sequel to the megahit could be a big draw for Microsoft's ecosystem. On the other hand, Minecraft might also serve as Microsoft's testing grounds for platform agnosticism."
The report added,"Nadella's reiteration of support for the Xbox also came with the suggestion that the company would seek to better integrate its gaming assets with its mobile platform. Acquiring relevant companies and properties was likely a means of improving Microsoft's ability to achieve this goal, and the Mojang purchase could be the first in a series of related buys."
In a note release this week, MKM Partners appraised MSFT at a $52 price target and a buy rating.
With Reports By Wall Street Journal, CNBC, New York Times, Recode,
