The archive · Business Models · Financial decision · 2009–2011
Minecraft sells the unfinished alpha at half price, funding development as price climbs
Notch sold the unfinished Minecraft alpha at half the release price with all future updates free; price rose at each milestone, funding the game to 4M+ copies.
Mojang
What it had to solve
In 2009, developer Markus 'Notch' Persson built the Minecraft prototype in six days while employed at King, with no publisher and no funding. He decided to sell the unfinished alpha on his own website so that purchases could pay for continued development.
How it works
In 2009 Markus 'Notch' Persson, a programmer at King in Stockholm, built the Minecraft prototype in six days and faced a familiar indie problem: no publisher meant no budget for the long road to a finished game. His answer was to put the unfinished alpha on his own website and sell it at about $13 — half the price he planned for the final game — with the promise that everyone who bought early would receive every future update free.
The scheme worked as both a funding mechanism and a marketing hook. The alpha was sold under a 'half price' label, the price rose as the game matured (around €14.95 at beta, €20 at release), and sales began with 15 copies on the first day. Notch published development diaries on the TIGSource forums, and by September 2010 more than 20,000 copies had sold — enough for him to quit his day job and found Mojang with no venture capital.
The model, which Notch later called the 'Minecraft Cortex Command Model,' turned players into early funders: they paid less for the privilege of playing an unfinished game, and the developer received revenue while development was still happening. Minecraft passed 4 million sales before its official release in November 2011, and the approach spread across the industry as early access.
Why it lands
- A rising price gives early buyers a real discount, so risk-taking fans fund the build instead of a publisher.
- Selling an unfinished product tests demand early: if nobody buys, the developer loses only time already spent.
- Free updates for early buyers create loyalty, because every improvement arrives as a gift to existing customers.
- Public development diaries let players feel like backers rather than customers.
- Zero outside capital kept ownership and creative control with the developer.
What it did
Early sales funded development with zero outside investment: 20,000+ copies sold before Notch quit his day job, 4M+ by official release, and the 'buy an unfinished game cheap, get updates free' pattern became the industry's early-access standard.
What you can take
Let early customers fund development by selling the unfinished product at a rising price: the discount rewards early risk, sales verify demand early, and free updates keep buyers loyal.
Since then
Mojang was founded in 2010 and grew without venture funding; Minecraft had sold more than 4 million copies by its official release in November 2011. The alpha-funding pattern became the industry's 'early access' model — most visibly Steam Early Access from 2013 — and is now a standard way for small studios to finance development. In 2014 Microsoft acquired Mojang for about $2.5 billion, and Minecraft has since passed 300 million lifetime sales.
Sources
- Early Access: Vom Geld verdienen mit unfertigen Spielen
- Financiar un videojuego a lo Minecraft, ¿funciona?
- Minecraft——週末プロジェクトが250億ドルの買収に至るまで
- Notch Talks Minecraft Development, Regrets, And Piracy
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