Sega unveils sand arcade machine

12 September 2014 Last updated at 13:16

Japanese video-game company Sega is developing an arcade machine that is controlled by shapes made in a box full of specialised sand.

In a video on its YouTube channel, the firm shows children sculpting landscapes and objects, which are recognised by the device.

A detailed image is then projected on to the sand, marking out water, greenery, and even wildlife.

The grains do not stick to players' hands, and no liquid is required.

In 2011, university students in the Czech Republic created a similar sandbox that worked with the Xbox console, by communicating with the Kinect motion sensor.

It enabled gamers physically to mould landscapes, complete with hills, troughs and rivers, which would then be recognised by the device so that colours and further details could be projected on to the sand.

Sega, which used to build consoles but now focuses on developing games for other platforms, still has a division that creates arcade amusements.

The company said it had no plans to release the sandbox game outside Japan.

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First Android One smartphones launch

15 September 2014 Last updated at 09:16 By Leo Kelion Technology desk editor

The first Android One-branded budget-priced "high quality" smartphones have been released in India.

The handsets provide a minimum set of features determined by Google, which has sourced several of the components to help cut manufacturing costs.

The company has also teamed up with a local network to make it cheaper to download Android updates and new apps.

Experts suggest the move should help address criticism of earlier entry-price smartphones.

Sundar Pichai, who oversees Android, said the Android One scheme had delivered economies of scale that meant the first batch of phones could be offered for as low as 6,399 rupees ($105; £65) if bought contract-free.

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Three Indian companies have released the first Android One handsets, as Shilpa Kannan reports

"Our goal was to develop high quality smartphones at an affordable price, with access to connectivity, done at scale around the world," he told the BBC ahead of the launch in Delhi.

"We provide our OEMs [original equipment manufacturers] a menu, effectively.

"They can choose the CPU [central processing unit], the GPU [graphics processing unit], the storage, the type of battery, the type of camera.

"It really saves them a lot of effort in terms of identifying the right hardware [and] doing all the testing you need to do to get the software to run on this hardware.

"We tune it, we work out the bugs… we keep it secure, we update it and so on."

He added the scheme should soon expand to Indonesia, Philippines, Pakistan, Bangladesh, Nepal and Sri Lanka.

There are no plans to launch the handsets in the West, but Mr Pichai did not rule it out.

Matching specs

The first Android One devices are made by Micromax - already India's bestselling mobile-phone maker - Karbonn and Spice.

To meet Google's minimum standards they all have:

• a 4.5in (11.4cm) display
• 1GB of RAM (random-access memory)
• a 5MP rear camera and a 2MP front one
• a quadcore processor sourced from Taiwanese company Mediatek
• the ability to run the next version of Android, due for release soon

In addition, they have been tailored to suit the local market by including a micro-SD (Secure Digital) slot, a replaceable battery, a built-in FM radio and the ability to support two Sim cards simultaneously.

If connected to Airtel - one of India's most popular networks - data used to download Android updates will not be subtracted from a customer's allowance for the first six months. Users can also download 200MB worth of apps from Google Play on top of their data plan.

Google said it had also customised some of its own apps for India, including:

• the addition of railway bookings and cricket scores to Google Now's card-based results
• an "offline" version of YouTube, so videos can be re-watched without incurring extra data charges after the initial download
• the introduction of 13 local publications to Play Newsstand

The handset makers are allowed to add services and wallpapers of their own, but cannot run a "skin" on top of Android that significantly changes the user interface - something manufacturers have commonly done in the past to distinguish their models.

"We want to deliver a consistent experience on these devices," said Mr Pichai, adding this should prevent the devices taking a performance hit or being incompatible with software updates.

Word of mouth

About 400 million smartphones will be sold in India over the next five years, according to a forecast by PricewaterhouseCoopers, with the majority bought at Android One's price point.

"A lot of the phones that have been sold in this price zone to date have not been particularly high performance or high quality," said Mohammad Chowdhury, the company's Mumbai-based (Bombay) telecoms expert.

"That's meant the experience for users has been less than satisfactory.

"If Google can start convincing people that the experience of using data will be better on these phones, I think that will result in fairly fast uptake, particularly as word of mouth is quite good in India."

Android One's launch comes less than a month after two low-cost smartphones running Mozilla's rival Firefox operating system were launched in India.

The Wall Street Journal has also reported that Samsung intends to sell budget-priced Tizen phones in the country, a system it currently uses to power cameras and smartwatches.

"India and other emerging markets are being targeted by other potentially low-cost platforms," said Chris Green, from the Davies Murphy Group consultancy.

"Google needs to protect Android's market base in these countries, as the low-cost users of today will be the premium users of 10 years time."

More smartphones

Mr Pichai said Google would "constantly evolve" Android One's minimum standards to suit both the needs of future software and the tastes of the various markets it launched into.

He added that handset makers Lenovo, Acer, HTC, Asus, Panasonic and Alcatel had recently joined the programme along with the chipmaker Qualcomm, all of which would launch devices at a later point.

That leaves the bestselling Android handset-maker, Samsung, as a notable holdout.

Even so, Mr Pichai said he expected the company would play a "huge role" in helping offer Android to the "next four billion users".

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Twitch malware spends users' money

12 September 2014 Last updated at 18:18 By Joe Miller Technology Reporter

Malicious software spread via chat forums on the video games streaming site Twitch can spend users' money without authorisation, it has emerged.

The Finnish security firm F-Secure said clicking on the malware links also enabled infiltrators to wipe accounts on the gaming shop, Steam.

Twitch is advising users not to use links from unknown sources.

The site, which was recently bought by Amazon for $970m (£597m) has more than 55 million unique monthly viewers.

The vulnerability originates from an automated account which, according to F-Secure, "bombards channels and invites viewers to participate in a weekly raffle for a chance to win things such as 'Counter-Strike: Global Offensive' items".

If viewers take the bait, they are invited to fill in their name and email address which then allows the malicious software to gain control, allowing it to:

• Take screenshots
• Add new friends in Steam (a gaming shop and community commonly linked to Twitch accounts)
• Accept pending friend requests in Steam
• Initiate trading with new friends in Steam
• Buy items, if user has money
• Send a trade offer
• Accept pending trade transactions

A spokesman for Twitch told the BBC that the vulnerability was the "first instance" he had seen, but that the site would "remind our community about not clicking on links from unknown sources just like they wouldn't on other social media sites".

He added: "Please note that we give all broadcasters the option to disable links in their chat which can easily prevent this."

Update: On Saturday, a spokesman said Twitch had only received two reports of the malware attack, and had blocked the link.

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Phones 4U shops closing for business

15 September 2014 Last updated at 13:20

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Staff from Phones 4U in Stockport posted up a ''heartbroken'' sign in their window

Retailer Phones 4U has gone into administration putting 5,596 jobs at risk.

The chain, which is owned by private equity firm BC Partners, said its 550 stores would all be closed on Monday.

Phones 4U blamed the move on mobile network EE's decision not to renew its contract, which followed a similar move from Vodafone earlier in September.

"If mobile network operators decline to supply us, we do not have a business," said Phones 4U boss David Kassler.

The company said established mobile contracts taken out through it would not be affected, although phones ordered and not despatched - for example anyone ordering the new iPhone 6 over the weekend - would be. A customer service line will be open from Monday at 09:00.

It also said staff should turn up to work as normal, when they would be given further details and would "continue to be paid until further notice".

What next for customers? Will this affect mobile phone contracts bought through Phones 4U?

All existing mobile phone contracts will be honoured, the company says. Networks will continue to provide mobile services to these customers, so customers will be able to continue using and paying for their phone as normal.

The company says that any existing discount deals will still be honoured. Some customers receive a £5 discount each month.

Clearly, customers will still have a decision to make about where to take their custom when their contract expires.

What about phone insurance policies?

Again, these policies will be honoured. Anyone who needs to make a claim if, for example, their phone has been stolen will still be able to do so, with staff still available to take these calls on 0844 8710535.

What happens if a phone has been ordered from Phones 4U?

The company says that any phones that have been ordered and sent out can be used as normal by customers.

However, orders of phones yet to be dispatched will be cancelled and refunds automatically paid to customers.

Phones 4U customer services remain operational and available on 0844 8712253, the company adds. Customers whose phones are being repaired can call 0844 8712269. Their repairs will be completed with the phone being sent back to their home address rather than a store.

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Rory Cellan-Jones reports: ''There's little optimism that these shops will be back in the phones business any time soon"

Continue reading the main story

"Start Quote

The ultimate result will be less competition, less choice and higher prices for mobile customers in the UK"

End Quote David Kassler Phones 4U

A spokesperson for EE said the decision not to renew its contract with Phones 4U was "driven by developments in the marketplace that have called into question the long term viability of the Phones 4U business".

The spokesperson added that the decision was also "in line with our strategy to focus on growth in our direct channels".

EE, Vodafone and 02 all have around 500 stores across the country, broadly the same same sized network of stores that Phones 4U have, and sell directly to customers through these.

BC Partners said EE's contract was due to expire next September, a full year from now.

It warned "the ultimate result will be less competition, less choice and higher prices for mobile customers in the UK"

Analyst Rahul Sharma, from Neev Capital, told the BBC the network operators own business was under pressure and the companies were trying to shore up their profits. He also pointed out the EU has put pressure on their charges, most recently stamping down on roaming charges.

Professor Andre Spicer, from the Cass Business School, said customers had less need of high street phone shops in any case: "Currently the networks are asking how they can take over more of the supply chain so they can reap a greater percentage of the profit created.

"Consumers are no longer scared of smart phones. This means they are less in need of a sales person to walk them through the purchase. Instead, they are likely to be happier buying devices online. This leaves retailers with less space for growth."

'Sad day'

Continue reading the main story

"Start Quote

We strongly reject any suggestion that we behaved inappropriately at any stage during our negotiations with Phones 4U"

End Quote Vodafone statement

Mr Kassler, chief executive of Phones 4U, said it was a "very sad day" for both customers and staff.

"A good company making profits of over £100m, employing thousands of decent people has been forced into administration," he added.

The firm said EE and Vodafone's decisions not to renew their contracts had come as "a complete shock".

Phones 4U said it had only received EE's decision late on Friday.

Stefano Quadrio Curzio, from BC Partners, said: "Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4U over more than six months.

"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4U no time to develop commercial alternatives.

Continue reading the main story

Mobile phone stores

• Phones 4U - 550
• EE - 520
• 02 - 450
• Vodafone - 360 rising to 500

"The company is in a healthy state and both EE and Vodafone had, until very recently, consistently indicated that they saw Phones 4u as a long-term strategic partner."

But in a statement, Vodafone said it had been in negotiations with the high street chain for months: "We strongly reject any suggestion that we behaved inappropriately at any stage during our negotiations with Phones 4U.

"Phones 4U was offered repeated opportunities to propose competitive distribution terms to enable us to conclude a new agreement, but was unable to do so."

Business editor Kamal Ahmed writes:

The collapse of Phones 4U is about much more than the demise of a high street chain that sells mobile phones and the possible sad loss of thousands of jobs.

According to the profitable retailer, it is actually about a reduction in competition.

Mobile contracts for consumers will now - even more - be dominated by the mobile operators themselves direct selling to customers.

Sources at Phones 4U say that Dixons Carphone is now the only major place when customers can get comparisons between operators. And that, as far as Phones 4U is concerned, is not a good thing.

Dixons Carphone said in a statement: ""We would like to offer our support to the colleagues and customers of Phones 4U. With regards to our Phones 4U shop-in-shop colleagues we hope to help them secure new jobs with us and will be opening up discussions with the administrators to agree what we can do."

PwC, which is expected to be appointed as administrator on Monday, will decide on whether the business can continue to trade.

Phones 4U was set up by the entrepreneur John Caudwell in the middle of the 1980s and sold for £1.5bn some 20 years later.

Phones 4U said it had been a profitable business, with turnover of £1bn, underlying profits £105m in 2013 and plenty of cash in the bank, but that without the contracts from the phone networks it no longer had a business.

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Drag queens in Facebook name row

12 September 2014 Last updated at 17:44 By Dave Lee Technology reporter, BBC News

A group of drag queens and transgender performers have called on Facebook to allow stage names rather than real names on the social network.

A petition supporting the change has attracted more than 2,000 signatures.

Facebook told the BBC that its real-name policy was designed to protect the community and increase accountability.

But the group argued that performers should be allowed to use stage names for reasons of "privacy, safety, or preference".

The petition, set up by Seattle-based performer Olivia La Garce, reads: "Although our names might not be our 'legal' birth names, they are still an integral part of our identities, both personally and to our communities.

"These are the names we are known by and call each other and ourselves.

Continue reading the main story

Mental health professionals and victims of abuse frequently use a nickname to avoid problematic interactions"

End Quote Cherry Sur Bete Drag queen

"We build our networks, community, and audience under the names we have chosen, and forcing us to switch our names after years of operating under them has caused nothing but confusion and pain."

Another performer, San Francisco-based Sister Roma, said he was locked out of his account until he used the name Michael Williams. A hashtag #mynameisroma was started to raise awareness of the issue.

'Potential problems'

Drag queen Cherry Sur Bete, who said his profile had also been flagged as breaking the rules, said: "This isn't just a matter for nightlife performers, this is a matter for actors and musicians, as well as folks who have chosen a different name simply to avoid potential stalkers.

"Mental health professionals and victims of abuse frequently use a nickname to avoid problematic interactions. Facebook now effectively hands them over to those potential problems."

Facebook has stood firm on the matter, telling the BBC that its real-name policy created a safer environment on the network - and that there were other ways the drag queens could express themselves.

"If people want to use an alternative name on Facebook, they have several different options available to them, including providing an alias under their name on their profile, or creating a Page specifically for that alternative persona.

"As part of our overall standards, we ask that people who use Facebook provide their real name on their profile."

The spokesman added that its strict real-name policy - explained in detail in the site's help section - had meant it was able to help crack down on abusive comments made on the site.

Facebook's Pages is a feature typically used for high profile public figures. It allows people to "like" a person, rather than necessarily become a friend linked through the network.

The performers argue that it is difficult to raise the profile of a Page without paying Facebook money to advertise.

Follow Dave Lee on Twitter @DaveLeeBBC

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Samsung accuses LG of damaging goods

14 September 2014 Last updated at 15:00

A bizarre spat has broken out between South Korean manufacturing giants Samsung and LG, with Samsung accusing its rival of damaging its goods.

Samsung says employees of LG Electronics, one a senior executive, were seen deliberately destroying some washing machines in stores in Germany.

Samsung says the vandalism took place earlier this month ahead of a major electronics trade fair in Berlin.

LG accepts two machines were damaged but said it was done accidentally.

It said the damage occurred because the model's hinges were weak.

LG said its executives had been examining its rivals' goods and it had offered to pay for four machines at one store, although only two were damaged by them during the inspection.

German police have already questioned those involved.

Damage

Samsung said in a statement: "It is very unfortunate that Samsung had to request that a high-ranking executive be investigated by the nation's legal authorities, but this was inevitable, as we concluded that we had to get to the bottom of this incident."

It has asked prosecutors in Seoul to investigate.

An LG spokeswoman told Reuters that Jo Seong-jin, head of the company's home appliances division, was one of the people named in Samsung's investigation request.

LG said in a statement: "If our company had an intention to destroy products of a certain company to tarnish the image of the product, it would be common sense to not have our executives directly carry out such acts.

"We hope that this is not an attempt to damage our reputation."

The two companies are fierce rivals, competing in a number of different markets, including phones and televisions.

LG claims to be the world's largest maker of washing machines, with Samsung the second largest.

The BBC's Seoul correspondent, Stephen Evans said: "In the past, LG and Samsung have confronted each other over smartphones, televisions, fridges and air-conditioners. Washing machines is a new front in the global battle."

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Canon printer hacked to run Doom

15 September 2014 Last updated at 12:19

A wireless Canon Pixma printer has been hacked to run classic video game Doom.

The hack was carried out by security researcher Michael Jordon, and it took four months to get the game running on the hardware.

He said he had undertaken the project to demonstrate the security problems surrounding devices that would form the "internet of things".

Canon said it planned to fix the loopholes on future printers to make them harder to subvert.

Control code

Like many modern printers, Canon's Pixma range can be accessed via the net, so owners can check the device's status. However, Mr Jordon, who works for Context Information Security, found Canon had done a poor job of securing this method of interrogating the device.

"The web interface has no user name or password on it," he said.

That meant anyone could look at the status of any device once they found it, he said. A check via the Shodan search engine suggests there are thousands of potentially vulnerable Pixma printers already discoverable online. There is no evidence that anyone is attacking printers via the route Mr Jordon found.

At first glance, the remote access feature did not look like a problem, until Mr Jordon realised it was possible to update the printer's controlling software, known as firmware, via the interface too.

Although the firmware was encrypted, research revealed it was possible to crack this protection system to reveal the core computer code. Reverse engineering the encryption system used by Canon also meant that if Mr Jordon wrote his own firmware the printer should accept it as authentic.

It was then Mr Jordon conceived the idea of getting the 1993 game running on the printer.

"Running Doom, that's real proof you control the thing," he told the BBC.

"The printer has a 32-bit Arm processor, 10 meg of memory and even the screen is the right size," said Mr Jordon. "I had all the bits, but it was a coding problem to get it all running together."

The biggest problem, he said, had been that the printer's firmware lacked functions provided by the operating system on any PC or other device it was running on. A version of Doom does exist that runs on Arm processors, but a lot of coding and experimentation was needed to convert this so it coped with the internal idiosyncrasies of the printer.

Writing code and getting it running sucked up months of Mr Jordon's spare time, and he finally got it to run two days before he was due to give a speech about the work at the UK's 44Con hacker conference.

"The colour palette is still not quite right," he said. "But it proves the point and it runs quite quickly, though it's not optimised."

Mr Jordon has no plans to fine tune the demonstration and do that optimisation or take on more work to get the game beyond its loading screen, given how much trouble it took to get it working at all.

"I'm so sick of it," he said. "I'm done."

On a blog entry about Mr Jordon's work, Canon said it intended "to provide a fix as quickly as is feasible".

This will involve adding a user name and password field to the web interface for future Pixma printers and issuing an update for existing owners to add the same feature.

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'Largest ever' SD memory card

12 September 2014 Last updated at 13:19

Memory specialist SanDisk has created an SD card with 512 gigabytes (GB) of storage space - the highest capacity ever released.

The card, which is the size of a postage stamp, will go on sale for $800 (£490).

The launch comes a decade after the firm released a 512-megabyte (MB) SD card with one-thousandth of the space.

Experts believe SD cards could eventually hold up to 2 terabytes (TB) of data, about 2,000GB.

The new card is aimed at film-makers shooting in the high-quality 4K format.

The 4K format - which is four times the resolution of HD - requires large file storage. Depending on compression, a single minute of 4K shooting will typically take around 5GB of storage space.

"4K Ultra HD is an example of a technology that is pushing us to develop new storage solutions capable of handling massive file sizes," said Dinesh Bahal, vice-president of product marketing at SanDisk.

The SD card format is one of the most widely used standards of flash storage, popular with digital cameras, camcorders and other mobile devices.

While camera types, resolutions and settings vary - a 512GB card could potentially hold around 30 hours of HD video.

Cloud worries

John Delaney, a senior mobile analyst from IDC, said innovation in physical storage was critical to the future of our devices - even if a lot of people are turning to cloud storage instead.

"The thing that is driving cloud storage is multiple devices usage - which solves the, 'Where's my stuff?' problem: if you use cloud storage for everything, whatever device you have with you can be used to access your content."

But he added: "So far there's still a strong preference for local storage.

"People just feel more in control and more able to rely on being able to access the content when they literally know where it is.

"Storing in the cloud means you literally don't know where it is."

Mr Delaney added that recent high-profile security issues around cloud storage - such as the celebrity picture leak last week - would play on the minds of consumers.

Follow Dave Lee on Twitter @DaveLeeBBC

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US spies 'can access German telecoms'

14 September 2014 Last updated at 11:21

US and British intelligence services are able to secretly access information from German telecoms operators, according to a German newspaper report.

A programme called Treasure Map gives the NSA and its UK counterpart, GCHQ, data from operators including Deutsche Telekom, Der Spiegel said.

The data is said to include information from networks as well as from individual computers and smart-phones.

Der Spiegel cites documents provided by US intelligence leaker Edward Snowden.

The former Central Intelligence Agency technical worker is the source of some of the biggest information leaks in US history.

A number of US allies, including Germany, have already expressed anger over Snowden-based spying allegations.

'Google Earth of the Internet'

The Spiegel article claims that the NSA ( National Security Agency) and the UK's GCHQ (Government Communications Headquarters) are able to eavesdrop on telecom companies such as Deutsche Telekom, Netcologne, Stellar and Cetel.

The Treasure Map programme, which the newspaper calls "the Google Earth of the Internet," is said to give the agencies access to data about the network structure and also through individual routers to subscribers' personal devices.

Der Spiegel warns that the information obtained could be used for planning sophisticated cyber-attacks.

The Treasure map was first mentioned last year by the New York Times, which says the programme collects Wifi network and geo-location data, as well as between 30 and 50 million unique internet provider addresses — information that can reveal the owner and location of a computer or mobile device.

Deutsche Telekom and Netcologne both told Der Spiegel they had not identified any evidence of manipulation or external access to their networks.

But Deutsche Telekom's IT security head Thomas Tschersich said: "The access of foreign secret services to our network would be totally unacceptable."

Phone tapping

The Snowden leaks, which began last year, have revealed a massive surveillance operation by the US.

Among the disclosures were allegations that the NSA tapped German Chancellor Angela Merkel's mobile phone.

As a result, Germany asked the top American intelligence officer in Berlin to leave his post in July.

Ms Merkel has publicly asked for an explanation for the alleged spying.

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Microsoft buys Minecraft for $2.5bn

15 September 2014 Last updated at 14:10 By Joe Miller Technology reporter, BBC News

Microsoft has bought Mojang, the Swedish firm behind the popular video game Minecraft, for $2.5bn (£1.5bn).

The title, which has sold over 54 million copies, allows players to build structures with retro Lego-style blocks, as well as explore a large map and battle others.

The deal was announced by Xbox chief Phil Spencer.

Mojang, whose three founders will leave the company, assured fans that "everything is going to be OK".

Some analysts have speculated the deal is designed to attract more users to Microsoft's Windows Phone devices.

The acquisition comes a year after Microsoft bought the Finnish mobile phone firm Nokia.

Minecraft is one of the top-selling apps on both Apple's iOS store and and Android's Google Play, and has recently been released for the Xbox One and PlayStation 4, further boosting sales.

Last month, it was the third most popular console game, according to market research firm NPD Group, despite being on sale for a while.

The game's developer, Mojang, which was founded in 2009, brought in over $100m in profit last year, and employs about 40 people.

Microsoft said the Mojang team would join its game studio, which is responsible for titles such as Halo, Forza and Fable.

The tech giant's chief executive, Satya Nadella, said: "Minecraft is more than a great game franchise - it is an open world platform, driven by a vibrant community we care deeply about, and rich with new opportunities for that community and for Microsoft."

Opposition to sale

Mojang's founder, Markus "Notch" Persson, has previously criticised Microsoft, and commented to Reuters that the market for Windows phones was "tiny" and not worth developing apps for.

Minecraft has a large and enthusiastic cult following, many of whom have reacted angrily to what they see as a corporate takeover of a communally-spirited independent company.

Continue reading the main story

Not only is [Minecraft] profitable, but it continues to increase in profits years after its release"

End Quote James McQuivey Analyst, Forrester

"Makes me sick, and sad," wrote one user on a popular Minecraft forum. "It would kill the gaming community," EvilBatsu added.

Others expressed concerns about whether fans would be able to exhibit their skills.

"Not only will it cost more money to play the game it will cost people their jobs too. Many people play Minecraft and upload it to YouTube as their career, but if Microsoft takes over there will for sure be copyright issues."

However some enthusiasts made the point that Microsoft could devote larger resources to upgrading and expanding the game.

In a statement, Microsoft said it would maintain Minecraft across all its existing platforms, with a "commitment to nurture and grow it long into the future".

It added that the acquisition was expected to be concluded by the end of 2014.

In an announcement confirming the deal on its website, Mojang reassured gamers, saying: "Please remember that the future of Minecraft and you - the community - are extremely important to everyone involved. If you take one thing away from this post, let it be that."

With regard to Microsoft, Mojang said: "There are only a handful of potential buyers with the resources to grow Minecraft on a scale that it deserves."

The firm added that "Notch" had decided that he "doesn't want the responsibility of owning a company of such global significance".

Developer Notch on selling Minecraft:

"I've become a symbol. I don't want to be a symbol, responsible for something huge that I don't understand, that I don't want to work on, that keeps coming back to me. I'm not an entrepreneur. I'm not a CEO."

Read his statement in full

Why Minecraft?

James McQuivey of analytics firm Forrester, noted that "Minecraft is one of the most important gaming properties in the world".

"Not only is it profitable, but it continues to increase in profits years after its release, largely due to the passionate fan base that invests in building out their own Minecraft worlds.

"That helps explain why Microsoft would want Minecraft and would want to ensure it is always available on Microsoft's gaming platforms.

Prof Mark Skilton, from Warwick Business School, said the acquisition was about building a "strong customer base" for Microsoft.

"The online gaming industry is fast moving from niche collective enthusiast to mass market and Minecraft is a logical move as big business follows the traffic numbers in the digital world."

Last month, Amazon bought Twitch, a site which allows users to watch other people play video games, for $970m (£597m).

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