Microsoft Agrees to Buy Minecraft Game Company

Coders work in the Mojang company office in Stockholm, Sweden, Jan. 21, 2013.

Microsoft has agreed to buy the company that developed the hit video game "Minecraft" for $2.5 billion.

Microsoft is a huge technology company known for selling business software. Minecraft creator Mojang is a much smaller firm based in Sweden that has sold more than 50 million copies of the game for use on personal computers, smartphones, and game consoles like Microsoft's X-box.

Minecraft is the largest selling paid application (program) on Apple, Google, and Android systems, but Mojang has not made a version for Microsoft's poorly-selling smart phones.

Analysts quoted in the financial press say the acquisition might help Microsoft improve its performance in the highly competitive smart phone arena, as well as give a boost to sales of its game console business.

Some information for this report was provided by AP and Reuters.