Microsoft Corp on Monday confirmed previous reports saying that it has agreed to acquire games developer Mojang and the company's popular Minecraft video game franchise for $2.5 billion. Microsoft expects the acquisition to be break-even in fiscal year 2015 on a GAAP basis. The deal is expected to close in late 2014.

"Gaming is a top activity spanning devices, from PCs and consoles to tablets and mobile, with billions of hours spent each year," said Microsoft CEO Satya Nadella.

"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."

Minecraft lets users build in and explore a virtual world and has been downloaded 100 million times on PC alone since its launch in 2009.

Microsoft plans to continue to make Minecraft available across PC, iOS, Android, Xbox and PlayStation.

The Mojang team will join Microsoft Studios, which includes the studios behind global blockbuster franchises "Halo," "Forza," "Fable” and more.

The deal gives Microsoft an asset and community that could cultivate a younger demographic, since Minecraft is [popular even among kids.

Minecraft also gives Microsoft a property that plays well on the desktop, iOS and Android. And since Minecraft will be owned by Microsoft at least there will be a Windows Phone version too.