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Minecraft Grosses ~$33M

Gamasutra offers some calculation based on a Reddit comment by Notch where the Minecraft designer says the indie sensation sold 800,000 alpha copies and another million more since, for an estimated $33 million in gross revenue before PayPal fees, taxes, etc. Here's what he says about where this "huge wad of money" is: "It all ends up in an account somewhere, and I try not to look at it. I get a normal salary these days for day to day stuff, but there's a big pile somewhere." Thanks Joao.

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32. Re: Minecraft Grosses ~$33M Apr 6, 2011, 21:44 Dev
 
Notch's problem is that of a huge number of small businesses (aka indies) in all areas of life.
They have issues scaling.

They are fine when they are super small, then when they start to become successful they can't figure out how to scale it up properly. Like a mom & pop restaurant needing to open a 2nd location, or a small printing company that can sell services for a good price because of their small volume printer now needs to invest in a $500,000 printer to handle the volume and they don't have anywhere near that much to invest.

Notch's was doing the game entirely on his own, now the company is trying to spread out, do too many projects (and weird ones at that, ones that probably won't go anywhere but he feels obligated to his friends). He's no longer getting his hands dirty in the code as much, but has he hired enough programmers and delegating and running the company well? Perhaps he needs to hire a COO to do that for him. At a certain point in scaling up, ONE person cannot handle all the hats and jobs he was doing when the company was very small. The test is, can he delegate and let others do that job, and either step out of the way or do more overall than hands on work (which is entirely different from his previous experience, not everyone has the skill set to do that regardless of how successful they did as a one man operation)
They also probably need to concentrate on this one game, getting it released, doing expansions, etc. If they want to do another project they need to have two separate teams, not siphoning people off one team. If notch is no longer excited and interested in finishing/polishing minecraft, he needs hire and give it over to people who ARE.

Unfortunately, since he's the guy with the money and in charge, if he's not getting good advice and not doing a good job at scaling up the company, it could easily drive the company under. That $33 million is probably only $15 mil after taxes, and a bunch of that just went into a brand new big HQ and equipment, if they are spending money like water, its going to hurt them.

I bought minecraft and I hope it succeeds and I hope they scale the business up, but I've been seeing missteps beginning with the company for a few months now that could lead to the downfall of the company.

This comment was edited on Apr 6, 2011, 21:53.
 
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    Date Subject Author
  1. Apr 6, 15:07 Re: Minecraft Grosses ~$33M LittleMe
  2. Apr 6, 15:11  Minecraft Grosses ~$33M nin
  22. Apr 6, 17:22   Re: Minecraft Grosses ~$33M Cutter
  13. Apr 6, 15:54  Re: Minecraft Grosses ~$33M bhcompy
  3. Apr 6, 15:12 Re: Minecraft Grosses ~$33M DangerDog
  4. Apr 6, 15:14  Re: Minecraft Grosses ~$33M ASeven
  5. Apr 6, 15:23   Re: Minecraft Grosses ~$33M Rattlehead
  7. Apr 6, 15:35    Re: Minecraft Grosses ~$33M Jay
  8. Apr 6, 15:35    Re: Minecraft Grosses ~$33M ASeven
  20. Apr 6, 16:45    Re: Minecraft Grosses ~$33M Steele Johnson
  28. Apr 6, 19:15     Re: Minecraft Grosses ~$33M Stormsinger
  31. Apr 6, 19:22      Re: Minecraft Grosses ~$33M Golwar
  33. Apr 7, 02:37      Re: Minecraft Grosses ~$33M Trainwreck
  35. Apr 7, 09:03       Re: Minecraft Grosses ~$33M Beamer
  6. Apr 6, 15:34 Re: Minecraft Grosses ~$33M Vazz
  23. Apr 6, 17:48  Re: Minecraft Grosses ~$33M Vulkan
  25. Apr 6, 18:37   Re: Minecraft Grosses ~$33M Sepharo
  26. Apr 6, 19:00    Re: Minecraft Grosses ~$33M nin
  27. Apr 6, 19:00    Re: Minecraft Grosses ~$33M TurdFergasun
  36. Apr 7, 09:14    Re: Minecraft Grosses ~$33M Mr. Tact
  30. Apr 6, 19:22  Re: Minecraft Grosses ~$33M Ventura
  9. Apr 6, 15:42 Re: Minecraft Grosses ~$33M Icewind
  10. Apr 6, 15:43  Re: Minecraft Grosses ~$33M Fion
  12. Apr 6, 15:52  Re: Minecraft Grosses ~$33M ASeven
  14. Apr 6, 16:15  Re: Minecraft Grosses ~$33M JoeNapalm
  16. Apr 6, 16:18   Re: Minecraft Grosses ~$33M Fion
  18. Apr 6, 16:35    Re: Minecraft Grosses ~$33M Halo
  15. Apr 6, 16:17  Re: Minecraft Grosses ~$33M Elessar
  24. Apr 6, 18:37  Re: Minecraft Grosses ~$33M Nameless Again
  11. Apr 6, 15:50 Re: Minecraft Grosses ~$33M Silicon Avatar
  17. Apr 6, 16:32 Re: Minecraft Grosses ~$33M Tumbler
  19. Apr 6, 16:43 Re: Minecraft Grosses ~$33M Hump
  21. Apr 6, 16:47 Re: Minecraft Grosses ~$33M WyldKat
  29. Apr 6, 19:21 Re: Minecraft Grosses ~$33M Riker
>> 32. Apr 6, 21:44 Re: Minecraft Grosses ~$33M Dev
  34. Apr 7, 08:03 Re: Minecraft Grosses ~$33M Veinman
  37. Apr 7, 13:42 Re: Minecraft Grosses ~$33M Verno
  38. Apr 7, 14:54  Re: Minecraft Grosses ~$33M Beamer
  39. Apr 7, 15:49 Re: Minecraft Grosses ~$33M Mr. Tact


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