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‘Minecraft’ could boost Microsoft’s mobile reach

MAE ANDERSON
AP Technology Writers

NEW YORK (AP) — Microsoft’s decision to spend $2.5 billion for the creator of the hit game “Minecraft” could help the Xbox maker grab attention on mobile phones, a new priority for the company.

But the move carries risks, as gamers can be fickle. Although the Lego-like multiplayer game is currently the top paid app for the iPhone and Android devices in the U.S., today’s popular hit could be tomorrow’s dud. The maker of the much obsessed-over “Candy Crush Saga,” for example, rode the game’s popularity to go public this year, only to see its stock falter.

In addition, the founders of Mojang, the Swedish company behind “Minecraft,” aren’t staying with Microsoft. That could raise questions about Mojang’s ability to create another big hit.

Then again, a big hit was not what co-founder Markus “Notch” Persson was after when he created the game, according to a blog post Monday from Mojang and a note from Persson himself on his website.

“It certainly seems like the founders of ‘Minecraft’ didn’t want to continue forward,” Gartner analyst Brian Blau said. “It was something too big for them. ‘Minecraft’ is best in the hands of somebody who can take it in the direction it needs to go for the user.”

Microsoft has made mobile phones and Internet services priorities for the company as its traditional businesses — Windows and Office software installed on desktops — slow down or decline. With “Minecraft,” Blau said, Microsoft gains a new type of customer — mobile players.

“‘Minecraft’ is very popular on mobile,” Blau said. “It has an audience that wouldn’t necessarily think of Microsoft first. The mobile audience is typically Apple and Samsung.”

“Minecraft” is an “open world” game in gamer lingo, meaning it has no plot or outlined objectives. Players can explore and create virtual worlds built from blocky 3-D objects — thus the frequent Lego comparisons.

“It can also be about adventuring with friends or watching the sun rise over a blocky ocean. It’s pretty. Brave players battle terrible things in The Nether, which is more scary than pretty. You can also visit a land of mushrooms if it sounds more like your cup of tea,” Minecraft’s website explains.

Besides iPhones and Android devices, the game is available on Windows, Macs, Microsoft’s Xbox and Sony’s PlayStation. Microsoft said it will continue to make “Minecraft” available on all those platforms after the deal closes, expected this year.

With an all-ages “E” rating, the game has been downloaded 100 million times on personal computers since its debut in 2009, and it’s the most popular online game on Microsoft’s Xbox console.

Microsoft, which released the first Xbox in 2001, also owns the blockbuster “Halo” video game franchise. Unlike “Halo,” though, “Minecraft” is especially popular with younger gamers whose parents might not be comfortable with them going on wild alien shootouts.

Microsoft is not alone in trying to reach that audience. Activision Blizzard Inc., the maker of the “Call of Duty” shooter series, also makes “Skylanders,” a kids’ video game that’s played using toy figures.

Now, it will be Microsoft’s job to keep Minecraft’s loyal fan base happy. It’s something raised any time big, established corporations buy little, much-loved independent companies. It happened when Facebook bought photo-sharing app Instagram in 2012 and more recently when Amazon.com Inc. agreed to buy Twitch, the online network that lets people watch live and recorded footage of others playing video games.

“Change is scary, and this is a big change for all of us. It’s going to be good though. Everything is going to be OK,” Owen Hill, Mojang’s “chief word officer,” wrote in a blog post Monday.

“Minecraft will continue to evolve, just like it has since the start of development. We don’t know specific plans for Minecraft’s future yet, but we do know that everyone involved wants the community to grow and become even more amazing than it’s ever been,” he continued.

The acquisition will help Microsoft expand its gaming division. Besides “Halo,” it includes the “Forza” racing game. In a statement, Microsoft CEO Satya Nadella said that with “Minecraft,” Microsoft is getting “an open world platform, driven by a vibrant community we care deeply about, and rich with new opportunities for that community and for Microsoft.”

Blau said it helps that Microsoft knows games.

“It’s got the Xbox,” he said. “So overall … it’s a good move and a good fit because they have experience in the game industry.”

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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