Support NeoGAF

[Thick Thighs Save Lives]

Minecraft is much, much more popular on Nintendo Switch and PlayStation than it is on Xbox...and rightly so given the sales differences between these platforms.

Microsoft has already confirmed that Minecraft is Xbox's largest game in terms of revenues, and that it delivers significant profits. What's interesting is how much revenue the game actually makes, and where it actually makes those earnings. While we don't know exact dollar values to Minecraft's mega-hit success, we do know that the game earns a lot more money on practically every platform other than Xbox.

In his testimony in the FTC v Microsoft federal case, Xbox gaming Chief Financial Officer Tim Stuart sheds light on Minecraft's success. In Fiscal Year 2021, Minecraft made 4x more revenue on the Nintendo Switch than it does Xbox. The game also made 2x as much revenue on PlayStation than it did on Xbox.

Below is a transcript of his testimony:

Q Is Minecraft a significant revenue driver for Xbox?

Yes.

Q How does Xbox compare some of the other platforms on there?

It is the smallest

Q How does it compare to PlayStation to Xbox?

Roughly twice as big.

Q What about Nintendo?

Roughly twice as big as PlayStation. 4x as big as Xbox.

Q If you compare the net revenue to the gross margin, how profitable is Minecraft?

Minecraft is one of the most profitable, if not the most profitable first-party game.

Elsewhere in his testimony, Stuart talks about why Minecraft shouldn't be taken exclusive. It would be heavily detrimental to Xbox's bottom line and eat into profits, as well as erode the established multi-platform playerbase.

Read more: https://www.tweaktown.com/news/92143/minecraft-makes-4x-more-revenue-on-switch-than-xbox/index.html

 

[BennyBlanco]

Mojang was actually a bargain looking back.

 

[Banjo64]

Switch power

 

[Fredrik]

I wonder what would happen if there was a Minecraft 2 and if it was Xbox and PC exclusive. Would the world burn?

Anyhow, my kids are playing it on Switch too, they started on Xbox where I used to play it but went over to Switch fairly soon.

 

[Chukhopops]

Mojang was actually a bargain looking back.

It’s wild because there were quite a few « I don’t see the value » reactions back when it was announced it would stay multiplatform. That and the founders leaving the company.

9 years later I would bet it’s one of the best deals MS ever made.

 

[tmlDan]

It’s wild because there were quite a few « I don’t see the value » reactions back when it was announced it would stay multiplatform. That and the founders leaving the company.

9 years later I would bet it’s one of the best deals MS ever made.

To this day i don't get why its so wildly popular, same as roblox.

But hey, can't deny it's success even when they were bought it was huge

 

[winjer]

That is very impressive for Nintendo. Amazing result.
It's also impressive that the Xbox is where the game sells the least, despite Minecraft being owned by Microsoft.

 

[DryvBy]

Is this the Gamepass mentality?

 

[Thick Thighs Save Lives]

I wonder what would happen if there was a Minecraft 2 and if it was Xbox and PC exclusive. Would the world burn?

Anyhow, my kids are playing it on Switch too, they started on Xbox where I used to play it but went over to Switch fairly soon.

That would be the most narrow-minded thing Microsoft could do, even more so than making CoD Xbox exclusive. Everyone would just stick with the OG Minecraft.

 

[Timberwolf25]

You play it for "free" with gamepass, but have to pay for the full game on other platforms?

 

[ChorizoPicozo]

Minecraft was a juggernaut before MS acquisition.

 

[quest]

You play it for "free" with gamepass, but have to pay for the full game on other platforms?

Or Nintendo has the better demographic for the game. Sony outsold Microsoft over 2 to 1 so having half the revenue says both spent on average the same.

 

[DeepEnigma]

Ouch.

 

[adamsapple]

Mojang was actually a bargain looking back.

Likely paid the acquisition price over many times by now.

 

[Gudji]

Dat 30%.

 

[Robb]

That’s a lot. But the user base on Switch is also more than x6 bigger than Xbox so I’m not sure how comparable it is.

 

[Sentenza]

Mojang was actually a bargain looking back.

Jesus Christ, seriously.
I remember thinking "Two billions for that? I think it may be already at the end of its potential growth by now. They are overpaying it".
Holy shit, I've rarely been more wrong about something.

 

[Daneel Elijah]

So around 58% Switch, 28% Playstation and 14% Xbox? I think that it is because of the cross gen version of Minecraft making it not necessary to buy it again on next gen consoles. And Gamepass making it useless on the Series consoles. Still, how small the Xbox part is, when we put the PC in the equation?

I wonder what would happen if there was a Minecraft 2 and if it was Xbox and PC exclusive. Would the world burn?

Minecraft 2 already exist, you know?

Honestly Minecraft is more than a decade old, and will be 15 before the end of the Xbox Series generation. If Microsoft were smart, they would be discussion about how to push the concept to the next level. If there is a hook big enough, they can do a early access and work toward getting all of what have been made for the actual Minecraft, but with the gimmick on top. We have seen Dreams work pretty well from Sony, so they could go that route and give Minecraft 2 tools to be like a game engine.. Nintendo did a pretty good job with Super Mario Maker, so they could do something like that, promising a game like it for X amount of old games each quarter. They have the money, so asking for a licensing deal for games like old 2d Mega Man, Metal Gear, Sonic, the Disney games made on Snes/Megadrive... could work out well for all parties. They could go for making it a poster boy of what can we do with ML in gaming, or just using the huge computational power of next-gen to make a great graphical upgrade of the game. And that would allow them to explain the exclusivity, as "only the next gen Xbox can do what we want to do with the IP". "We need to have as few platforms as possible to do this", and a bullshit "only the strongest PC can do that". I would be interested if there is a good enough gimmick to make it worth the upgrade. But in reality they are just asking for Mojang to make other games, and if the rumor is right can't even ask for them to make a exclusive game...

 

[Fredrik]

That would be the most narrow-minded thing Microsoft could do, even more so than making CoD Xbox exclusive. Everyone would just stick with the OG Minecraft.

They would certainly leave money on the table and I don’t think they’ll ever do it, shareholders would vote against it too. But IPs has gone from multi to 1 console+PC before, nothing as big as Minecraft obviously but I don’t think people would stay on the first one.

 

[SeraphJan]

Minecraft was most profitable on mobile phone last I recall, it fits the play style of portable gaming, it utilized discrete time, Switch is portable, both PS and Xbox are not

Its also pretty popular on PC due to how flexible in terms of modifying your own experience.

 

[Thick Thighs Save Lives]

They would certainly leave money on the table and I don’t think they’ll ever do it, shareholders would vote against it too. But IPs has gone from multi to 1 console+PC before, nothing as big as Minecraft obviously but I don’t think people would stay on the first one.

This isn't even about console, Minecraft is hugely popular on iOS and Android as well. Heck, it's even on MacOS (they have versions for both apple silicon and intel silicon)!

 

[Fredrik]

Honestly Minecraft is more than a decade old, and will be 15 before the end of the Xbox Series generation. If Microsoft were smart, they would be discussion about how to push the concept to the next level. If there is a hook big enough, they can do a early access and work toward getting all of what have been made for the actual Minecraft, but with the gimmick on top. We have seen Dreams work pretty well from Sony, so they could go that route and give Minecraft 2 tools to be like a game engine.. Nintendo did a pretty good job with Super Mario Maker, so they could do something like that, promising a game like it for X amount of old games each quarter. They have the money, so asking for a licensing deal for games like old 2d Mega Man, Metal Gear, Sonic, the Disney games made on Snes/Megadrive... could work out well for all parties. They could go for making it a poster boy of what can we do with ML in gaming, or just using the huge computational power of next-gen to make a great graphical upgrade of the game. And that would allow them to explain the exclusivity, as "only the next gen Xbox can do what we want to do with the IP". "We need to have as few platforms as possible to do this", and a bullshit "only the strongest PC can do that". I would be interested if there is a good enough gimmick to make it worth the upgrade. But in reality they are just asking for Mojang to make other games, and if the rumor is right can't even ask for them to make a exclusive game...

I think they’re too scared to even touch it. They do all additions via community votes now, scared to upset a majority.

Btw I wonder if Minecraft Dungeon is the same when it comes to the platform user split. At my house that’s actually played on Xbox.

 

[Fredrik]

This isn't even about console, Minecraft is hugely popular on iOS and Android as well. Heck, it's even on MacOS (they have versions for both apple silicon and intel silicon)!

Easy it’s just a thought experiment™ I actually do think the world would burn. Would MS even be allowed to do it?

 

[Daneel Elijah]

I think they’re too scared to even touch it

After Halo Infinite and Redfall I find it hard to think that they are scared of anything... But yeah, it is a lot easier to let Mojang do their jobs and take the money.

 

[BennyBlanco]

Jesus Christ, seriously.
I remember thinking "Two billions for that? I think it may be already at the end of its potential growth by now. They are overpaying it".
Holy shit, I've rarely been more wrong about something.

I probably see more Minecraft merch out in the wild than any other game franchise besides pokemon

 

[Fredrik]

After Halo Infinite and Redfall I find it hard to think that they are scared of anything... But yeah, it is a lot easier to let Mojang do their jobs and take the money.

Redfall was a new IP, it’s already forgotten, nobody cares there. But Halo is big, Infinite was supposed to be the next big thing but was in dev hell I guess. The Halo IP was already down after 5 though, needed a change, ironically I still enjoyed that more than Infinite. But messing up Minecraft would be something else. If they ever try doing something new and evolved there I think they’ll do it in parallell with the old one. Highly community created too.

 

[ChuckeRearmed]

Makes sense. It is appealing to general market and most of Switch community is exactly that market.

 

[Daneel Elijah]

Redfall was a new IP, it’s already forgotten, nobody cares there. But Halo is big, Infinite was supposed to be the next big thing but was in dev hell I guess. The Halo IP was already down after 5 though, needed a change, ironically I still enjoyed that more than Infinite. But messing up Minecraft would be something else. If they ever try doing something new and evolved there I think they’ll do it in parallell with the old one. Highly community created too.

Redfall is the case of if you are already in, it does not matter, but if you are out, this make you abandon any hope of entering. Same for Forspoken, who got a lot of laughs for the same reasons,even if the game was not at all as broken. But yes it is/ will be forgotten soon. I think that a Minecraft 2 would either be so far in the future that it would have to "relaunch the machine" and so not be side by side with the old one, or closer to what you have said be like a side dish until it can stand alone. A failure would not be that big, IF the old one is still around. But if they try a Overwatch 2... then it would be amazing to watch from afar.

 

[ZoukGalaxy]

Switch power

 

[solidus12]

Microsoft needs to buy Mario in order to compete with Nintendo

 

[Zathalus]

Wonder how it compares to PC revenue

 

[HTK]

Apparently everyone is making money except Xbox, no wonder they got pissed and want to buy everything and everyone up. Lol

 

[Fredrik]

Redfall is the case of if you are already in, it does not matter, but if you are out, this make you abandon any hope of entering. Same for Forspoken, who got a lot of laughs for the same reasons,even if the game was not at all as broken. But yes it is/ will be forgotten soon. I think that a Minecraft 2 would either be so far in the future that it would have to "relaunch the machine" and so not be side by side with the old one, or closer to what you have said be like a side dish until it can stand alone. A failure would not be that big, IF the old one is still around. But if they try a Overwatch 2... then it would be amazing to watch from afar.

I love Minecraft, and all it has done in the hobby, it would not be amazing to watch it fail.

 

[Bonfires Down]

Should have asked about PC and mobile too.

My guess; PC = mobile > Switch > PS > Xbox

 

[prinz_valium]

Remember this was in 2021, when Switch sales exploded crazy and Xbox supply was gone while PS4 was limited.

Revenue is probably still Mobile>PC>Switch>PS>Xbox, but nowhere near the 4:1 anymore for Switch

 

[Timberwolf25]

The beauty of it is that no matter where it's played, it's revenue for MS/Mojang.
It's probably their most profitable acquisition compared to the money invested.

 

[Chukhopops]

Apparently everyone is making money except Xbox, no wonder they got pissed and want to buy everything and everyone up. Lol

It shows two things:
- in the end, the one who makes the most money is the IP owner;
- when an IP is big, going exclusive isn’t always the best option.

 

[DenchDeckard]

That makes sense imo. Minecraft Is huge worldwide and almost feels like a nintendo game. Nintendo is worldwide. Ms is not.

 

[jroc74]

And Phil flirted with the idea to make it exclusive.....

Xbox execs need to be careful how they handle these current and future acquisitions.

 

[Pedro Motta]

This is why "exclusives don't matter".

 

[Gobjuduck]

Makes total sense, the target market is on switch or fucking ipad.

 

[DownLikeBCPowder]

I wonder what would happen if there was a Minecraft 2 and if it was Xbox and PC exclusive. Would the world burn?

Anyhow, my kids are playing it on Switch too, they started on Xbox where I used to play it but went over to Switch fairly soon.

I'm of two minds here. For one it would just be throwing money away.

But for two, I'm very much in favor of platform exclusives - they are what generally drive me to purchase hardware. Microsoft is in dire need of them from my perspective, but even in cases like Starfield, which would be a system seller for me, it's day 1 PC giving me no need for an Xbox. I would buy an Xbox but I just don't see the pull. Maybe there are some really great exclusives right up my alley that aren't inherently PC style games (by that I just mean games and styles of games I'd rather play on or feel belong natively on PC), but if so I'm not currently aware of them. I loved my 360, for a long while was my favorite of that gen.

Granted I think something like Starfield belongs and deserves to exist on PC - Bethesda games, as much as they have become "console-ified" over the years, are PC games at heart. That said, Morrowind was one of the reasons I bought the original Xbox - my PC was terrible at the time.

 

[THE DUCK]

Yet you have to wonder, since it's massively popular, what would have happened if MS had made it exclusive? I know they would have lost a lot of revenue in software sales, but would it have driven a lot more xbox sales?
I mean mom walks into store and says her kids wants to play minecraft, the sales person says only on Xbox.........
Of course you might also argue it's popularity dies out, but not so sure since many were also playing on PC.......

 

[killatopak]

Yet you have to wonder, since it's massively popular, what would have happened if MS had made it exclusive? I know they would have lost a lot of revenue in software sales, but would it have driven a lot more xbox sales?
I mean mom walks into store and says her kids wants to play minecraft, the sales person says only on Xbox.........
Of course you might also argue it's popularity dies out, but not so sure since many were also playing on PC.......

They can’t. I heard it was one of the conditions during the buying of Mojang.

 

[Fredrik]

I'm of two minds here. For one it would just be throwing money away.

But for two, I'm very much in favor of platform exclusives - they are what generally drive me to purchase hardware. Microsoft is in dire need of them from my perspective, but even in cases like Starfield, which would be a system seller for me, it's day 1 PC giving me no need for an Xbox. I would buy an Xbox but I just don't see the pull. Maybe there are some really great exclusives right up my alley that aren't inherently PC style games (by that I just mean games and styles of games I'd rather play on or feel belong natively on PC), but if so I'm not currently aware of them. I loved my 360, for a long while was my favorite of that gen.

Granted I think something like Starfield belongs and deserves to exist on PC - Bethesda games, as much as they have become "console-ified" over the years, are PC games at heart. That said, Morrowind was one of the reasons I bought the original Xbox - my PC was terrible at the time.

I hate exclusives. Especially console exclusives. I would be furious if I had to wait a year or whatever to play Starfield above 30fps just because they wanted to sell more consoles. I already have all consoles, I don’t need to be swayed, I just want to play the game at it’s best.

 

[Closer]

So around 58% Switch, 28% Playstation and 14% Xbox? I think that it is because of the cross gen version of Minecraft making it not necessary to buy it again on next gen consoles. And Gamepass making it useless on the Series consoles. Still, how small the Xbox part is, when we put the PC in the equation?

Exactly the same as stated in OP. The percentage you calculated for every platform would be smaller but still 4x Xbox for Nintendo and 2x Xbox for Playstation.

 

[Daneel Elijah]

Exactly the same as stated in OP. The percentage you calculated for every platform would be smaller but still 4x Xbox for Nintendo and 2x Xbox for Playstation.

if 50% is pc then xbox would be only 7%. And with mobile it could be even worse than that. But we will probably not have the answer.

 

[Closer]

if 50% is pc then xbox would be only 7%. And with mobile it could be even worse than that. But we will probably not have the answer.

Only if PC, Xbox and mobile are Xbox.

 

[THE DUCK]

They can’t. I heard it was one of the conditions during the buying of Mojang.

Not sure about that, Mojang said this when they were purchased:

“There’s no reason for the development, sales, and support of the PC/Mac, Xbox 360, Xbox One, PS3, PS4, Vita, iOS, and Android versions of Minecraft to stop. Of course, Microsoft can’t make decisions for other companies or predict the choices that they might make in the future.”

 

[Rhazer Fusion]

Im not surprised at all. It’s because Minecraft is a better fit for the Nintendo demographic and XBOX gamers don’t play or buy as many games as PlayStation and Nintendo owners do. It’s reasons like this why I think COD staying exclusive to XBOX will severely damage the franchise as far as numbers and profit goes.