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MS never ruined Rare, all of Rare's talent left before MS bought them. It's the reason Nintendo didn't want to keep them.

With that clarified, I don't know how MS could ruin a company that made one game. The game itself is mostly a sandbox of tools that users use to make their own fun. It's not like Minecraft has great graphics, music or story. It's just a great initial concept. I would expect MS to make Minecraft 2 with perhaps better graphics and more tools, etc, and possibly make a bunch of money off it.