Minecraft’s Mod Marketplace Fetches Microsoft $350 Million in Earnings

Microsoft recently shared its Q3 earnings for 2021 where the top performers were Windows PC and the newly launched Xbox Series X/S consoles. But another major contributor to the tech giant’s $41.7 billion quarter was Minecraft’s Mod Marketplace which brought in an impressive $350 Million.

Clearly, many of Minecraft’s 140 million active users have been frequenting the game’s extensive mod shop. For the uninitiated, the mod marketplace is an in-game shop where Minecraft players can sell modded content to fellow Minecraft players. The marketplace arrived in the block world builder in 2017 as a part of the Discovery update, which also introduced the Woodland Mansion and several new block types.

Following its purchase by Microsoft in 2014 for $2.5 billion, Minecraft has become a huge part of the company’s sales revenue with the marketplace being a key driver in the game’s success for the company. With Minecraft modders now earning money from the mods, skins, and add-ons they upload to the marketplace, Microsoft has helped ensure that the game remains profitable in spite of the fact that it is almost a decade old.

The prime functions of the marketplace are two-fold; it not only creates an official space for downloadable content, but also incentivises mod creators to make Minecraft mods. According to Microsoft, modders take home 50% of the revenue brought in by their mods, which brings the kickback from Q3 sales up to about $175 million for content creators.

If current trends continue, Minecraft will continue to be a major contributor to Microsoft’s coffers. Its 140 million user base has come as a result of a 30% year-on-year increase in players and with Covid-19 still keeping people indoors, it is quite probable that the number will go up even further.

Additionally, Microsoft says that over 1 billion Minecraft mods have been downloaded across its various ports; a number that is bound to look promising to any future modders who are looking to make a buck with their creations.

What will also work for Minecraft in the near future is Microsoft’s steady provision of updates, constant porting to new systems, and the super popular Minecraft Dungeons. Additionally, the company is doing a great job of keeping the Minecraft community engaged with the mod marketplace so that should keep the money flowing comfortably.

About Minecraft

Minecraft is a sandbox video game developed by Mojang Studios and was created by Markus “Notch” Persson in the Java programming language. Following several early test versions, it was released as a paid public alpha for personal computers in 2009 before releasing in November 2011, with Jens Bergensten taking over development. Minecraft has since been ported to several other platforms and is the best-selling video game of all time, with 200 million copies sold and 126 million monthly active users as of 2020.