Less than a month after Amazon bought Twitch.tv, a video game streaming site at nearly $1 billion, today, Microsoft announced its $2.5 billion purchase of the Swedish firm Mojang, responsible for the popular video game Minecraft. It is increasingly common for companies to recognize the plethora of opportunities in the less frequented market of video game culture.
This purchase exemplifies many features of the 9 key building blocks of the business model canvas. For customer segments, Microsoft’s purchase of Minecraft not only diversifies the target markets, but appeals to the mass market of consumers within the electronics and gaming industry. With Minecraft recently released for the Xbox One and Playstation 4, and a top selling paid for app for Androids and Apple, more customers will be reached through for Microsoft’s next decisions. A great move by Microsoft for the company’s impressive array of value propositions ranging from smartphones (see: Microsoft purchases Nokia), tablets, computers and now, gaming.
Microsoft’s recent acquisition of Minecraft not only builds a stronger customer base but offers resources to better Minecraft. Microsoft’s recognition of the impact of online gaming communities echoes Professor Marc Skilton of the Warwick Business School that, “the online gaming industry is fast moving from niche collective enthusiast to mass market and Minecraft is a logical move as big business follows the traffic numbers in the digital worldbase” (Miller).
Just one of the millions of possibilites to be created on Minecraft. Source: Amazon Eliza Steel, gameskinny.com
Works Referred to:
Dashevsky, Evan. “Amazon Buys Twitch, But What Is It?.” PCMAG. Ziff Davis, LLC. PCMag Digital Group, 26 Aug. 2014. Web. 16 Sept. 2014.<http://www.pcmag.com/article2/0,2817,2465070,00.asp>
“Microsoft officially welcomes the Nokia Devices and Services business.” Microsoft News. Microsoft, 25 Apr. 2014. Web. 15 Sept. 2014 <http://www.microsoft.com/en-us/news/press/2014/apr14/04-25nokiapr.aspx>.
Miller, Joe. “Microsoft buys Minecraft for $2.5bn.” BBC News. BBC, 15 Sept. 2014. Web. 15 Sept. 2014<http://www.bbc.com/news/technology-29204518>.
Osterwalder, Alexander, Yves Pigneur, and Tim Clark. “Canvas.” Business model generation: a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur, 2010. 14-16. Print.