Mojang Studios History: From Indie Startup to Microsoft Subsidiary

Before Mojang: One Developer and a Prototype

Before Mojang existed as a company, Minecraft was a solo project by Markus Persson. From May 2009 through mid-2010, Persson developed the game while working full-time at King (Midasplayer). Revenue from Minecraft sales during the Classic and Alpha phases was processed through Persson's personal PayPal account, which was frozen multiple times due to unusually high transaction volumes. By early 2010, it was clear that Minecraft needed a proper company behind it.

Founding Mojang (2010)

In September 2010, Persson co-founded Mojang Specifications AB with two partners:

• Jakob Porser: A friend and game developer who had worked with Persson at Midasplayer. Porser took on a creative role and began work on Mojang's second game project, Scrolls (later renamed Caller's Bane).
• Carl Manneh: An experienced business executive who became Mojang's CEO, handling operations, finance, hiring, and business development.

The company was headquartered in Stockholm, Sweden. Its first office was a modest space that the small team quickly outgrew as hiring accelerated. The company name "Mojang" is a Swedish word meaning "gadget" or "thing" -- a deliberately informal name that reflected the studio's indie roots.

Early Growth (2010-2011)

Mojang's first year was defined by rapid growth driven entirely by Minecraft sales. Key hires during this period included:

• Jens Bergensten (Jeb): Joined November 2010 as a developer. Became lead developer of Minecraft in December 2011.
• Daniel Kaplan: Business development, later involved in merchandise, licensing, and partnerships.
• Tobias Mollstam: Web developer who built and maintained Minecraft's account and authentication systems.

The company also organized the first MineCon in November 2011 in Las Vegas, coinciding with Minecraft's official 1.0 release. The event drew over 4,500 attendees and established a tradition of annual community gatherings that continued (in various formats) for years.

By the end of 2011, Mojang had roughly 15 employees and Minecraft had sold over 4 million copies on PC alone. Revenue was substantial enough that the company was entirely self-funded -- no outside investment was ever taken.

Expanding Beyond Minecraft (2012-2013)

Mojang attempted to diversify beyond Minecraft with additional game projects:

• Scrolls (later Caller's Bane): A collectible card game with tactical board elements, led by Jakob Porser. It launched in December 2014 and was sunset in 2018 due to low player counts. The name was the subject of a legal dispute with Bethesda (ZeniMax Media), which claimed the title infringed on their "The Elder Scrolls" trademark. The case was settled out of court.
• 0x10c: A space simulation game by Persson featuring a programmable in-game computer. Development was announced in 2012 but cancelled in 2013 after Persson lost motivation on the project.
• Cobalt: A 2D action game developed by Oxeye Game Studio and published by Mojang. Released in February 2016.

None of these projects approached Minecraft's commercial success. Mojang remained, in practice, a single-game company, though the Minecraft brand itself expanded through merchandise licensing, a novel series, and platform ports.

Console and Mobile Expansion

Mojang partnered with external studios to bring Minecraft to additional platforms:

• 4J Studios: Scottish developer that created the Xbox 360 Edition (May 2012), PS3 Edition (December 2013), PS4 and Xbox One Editions (2014), and other console versions.
• Pocket Edition: Initially developed in-house using C++ instead of Java. Released on Android (October 2011) and iOS (November 2011), Pocket Edition started as a stripped-down version but gradually gained feature parity with Java Edition.

The decision to build Pocket Edition in C++ (later evolved into Bedrock Edition) was significant. The C++ codebase performed better on mobile hardware and eventually became the foundation for the unified Bedrock Edition that runs on Windows 10/11, consoles, and mobile devices today.

Company Culture and Finances

Mojang became known for its informal, employee-friendly culture. The Stockholm office featured open workspaces, and the company offered generous benefits by industry standards. The team remained small relative to Minecraft's enormous user base -- even at its peak pre-acquisition, Mojang had only about 40-50 employees.

Financially, Mojang was exceptionally profitable. The company's 2013 annual report showed revenue of approximately SEK 2.1 billion (roughly $300 million USD) and a pre-tax profit of SEK 898 million (roughly $128 million USD). These figures made Mojang one of the most profitable game studios in the world on a per-employee basis.

The Microsoft Acquisition (2014)

In the summer of 2014, reports emerged that Microsoft was in talks to acquire Mojang. On September 15, 2014, the deal was officially announced: Microsoft would purchase Mojang for $2.5 billion USD. The acquisition closed on November 6, 2014.

The three co-owners -- Persson, Porser, and Manneh -- departed the company upon closing. Persson received approximately $1.75 billion from the sale. The remaining Mojang employees stayed with the company under Microsoft's Xbox Game Studios division.

Microsoft's stated rationale for the acquisition centered on Minecraft's massive and engaged user base, particularly among younger demographics. Phil Spencer, then head of Xbox, described Minecraft as a creative platform rather than just a game, with potential applications in education, community building, and digital entertainment broadly.

Under Microsoft (2014-2020)

Post-acquisition, Mojang continued to operate semi-independently from Stockholm. Key developments during this period included:

• Continued annual updates to Java Edition under Jeb's leadership.
• The Better Together Update (September 2017), which unified console editions into a single Bedrock Edition with cross-platform play.
• Launch of Minecraft: Education Edition (November 2016), used in schools across 115+ countries.
• Introduction of the Minecraft Marketplace (2017), allowing creators to sell skins, maps, and texture packs on Bedrock Edition.
• Partnership with Telltale Games for Minecraft: Story Mode (2015-2016).

The acquisition was widely viewed as successful. Minecraft's player base continued to grow, and Microsoft integrated the game into its broader ecosystem without alienating the existing community.

Mojang Studios Rebrand (2020-Present)

On May 17, 2020 (Minecraft's 11th anniversary), Mojang AB officially rebranded to Mojang Studios. The rebrand included a new logo and reflected the expanded scope of the studio's work. In the same month, Mojang launched Minecraft Dungeons, an action RPG dungeon crawler developed in partnership with Double Eleven.

Subsequent releases under the Mojang Studios name include Minecraft Legends (April 2023), a real-time strategy game developed with Blackbird Interactive. The studio also oversaw the production of the Minecraft movie (released 2025) and continued to expand Minecraft's reach through partnerships, events, and community programs.

Today, Mojang Studios employs several hundred people across offices in Stockholm, Redmond (Washington), and other locations. The studio remains the developer of the best-selling video game of all time, with Minecraft continuing to grow more than 16 years after its first public release.

Frequently Asked Questions

Where is Mojang Studios located?

Mojang Studios is headquartered in Stockholm, Sweden, with additional offices in Redmond, Washington (at Microsoft's campus) and other locations.

How many employees does Mojang have?

Mojang Studios employs several hundred people as of 2025, a significant increase from the roughly 40-50 employees it had before the Microsoft acquisition.

Did Mojang make any games besides Minecraft?

Yes. Mojang published Scrolls (later Caller's Bane), Cobalt, Minecraft Dungeons, and Minecraft Legends. However, none approached Minecraft's commercial success.

Is Mojang still independent?

No. Mojang has been a subsidiary of Microsoft since November 2014, operating under the Xbox Game Studios division.

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