Microsoft are looking into buying the Swedish company that produced the hit game Minecraft for more than $2bn (£1.2bn). The game sold more than 50 million copies since it was released five years ago. The game is available on Xbox, PlayStation, PC's and a downloadable app on smartphone and tablets. Analysts have however been concerned at the $2bn price Microsoft are willing to pay. Game production companies tend to have one or two hit games and then find it difficult to replicate their success. An example is King Digital Entertainment who released Candy Crush earlier this year. However, the companies shares have fallen as they after it's failure to replicate the same success.
- Minecraft earned Mojang more than $100m in profits last year as the game and subsequent merchandise proved a hit with youngsters.
- Hit building game earned Sweden's Mojang more than $100m in profits last year Microsoft is in talks to buy the Swedish company behind the hit video game Minecraft for more than $2bn (£1.2bn), according to reports.
I believe that although Microsoft believe this investment may be profitable for them, it could be in the short-term however may lead to falling or lack of profits in the long-term. The article shows examples of game production companies who release one or two hit games and there are many other examples of this such as: Darwinia and Flappy Bird.
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