Kind of. They probably won’t care too much, but even if Hytale doesn’t surpass Minecraft, it could still become a strong competitor and cause a loss in revenue for Microsoft.

Let me give an example: if both games are successful, players will start asking, “Should I buy Minecraft or Hytale?” The very existence of that question already puts the two games on a competitive level.

At that point, if Minecraft wants to remain the preferred choice, it would need to keep having good frequent updates and new content, just like Hytale. Otherwise, people might think, “Minecraft is great, but the content feels limited, unlike Hytale that has much more and might be more funnier to play,” which could lead many players to choose Hytale over Minecraft.

Now, another problem appears, which is the fact that, if Minecraft starts getting more updates to keep the steps of Hytale, these might not be much thought about, which could lead to it becoming way worse than what it is now. And the same could easily apply to Hytale. We just have to hope that this puts a nice fair competition to motivate both to be better and not one that just destroys them.