Minecraft is a huge force in the video game industry. Microsoft has seen great progress on their $2.5 billion investment in 2014 after buying Minecraft. The video game is ranked in the top five best games on most rankings. According to everyone's rankings, Minecraft is usually in third place after Wii Sports and the number one Tetris. Minecraft has also shipped 73 billion copies since 2013. The game is cheap, fun, and there is even an educational version that has been released for testing around the world. Now, Microsoft may have found a way to penetrate the Chinese market. This is great news for China, Microsoft and profits.
The technology market in China is generally volatile
It is difficult for NGOs to enter and stay in China. Apple and Microsoft know these difficulties all too well. In fact, Apple just invested $1 billion in a Chinese ride-sharing company to smooth out the rough spots. The technology market in China is also worth a lot of money. China's gaming industry is estimated to be the second largest in the world. It is worth about $18 billion. Hence Microsoft's eagerness to bring Minecraft to the Republic. Other technology NGOs have been allowed to enter the market, but have had difficulty staying in the good graces of the Chinese government.
New Chinese Minecraft challenge
Some thought the $2.5 billion price tag paid by Microsoft was ridiculous. But they've had global success, and the Asian market could be the next big build challenge. Last week, Microsoft announced an exclusive five-year partnership with NetEase. NetEase is a Chinese publisher that will roll out the game to computers and smartphones. The agreement between Minecraft and Mojang is still a bit of a secret. No reports have been released on how much money was exchanged, nor when Chinese players will be able to get their hands on the game.
The challenge for Microsoft
Unfortunately, Xbox One consoles are not yet widely available in China. So the wisest choice is to stick to PC and smartphone platforms. And dealing with the Chinese government to bring a game to market is even more difficult than before. NGO video game companies will need six permits to enter the Chinese market. Most strategies involve either partnering with a Chinese company or marrying a Chinese citizen to create a company to partner with. That sounds like a lot of work. But for Microsoft, it could pay off big time.