The $68.7 billion deal will be Microsoft’s largest ever acquisition and the largest in video game history. The acquisition would make Microsoft the world’s third largest gaming company by revenue, after Tencent and Sony. Microsoft’s biggest competitor in the video game sector has reason to worry about such a major change in the sector.
Microsoft’s acquisition of Activision Blizzard was and continues to be an industry change that affects other companies as well. Above all: Sony. The stock market for the PlayStation manufacturer has virtually collapsed and one wonders if it will recover quickly.
Sony blames the hit
As you might expect, Sony (and its PlayStation) is the biggest loser in Microsoft’s acquisition of Activision Blizzard. As a result, Sony’s stock currently knows only one direction: downside. As you can see in the screenshot below, Sony’s stock is down 12% on the Tokyo Stock Exchange, and things aren’t looking any better on the NYSE where the Japanese group also follows.
On the one hand, this is due to the fact that Sony does not have anything (for the time being) to counter the Xbox Game Pass, which will soon be more attractive, and on the other hand, the PlayStation risks losing important Activision Blizzard games.
Sony stays ahead of Microsoft despite everything
Note, however, that Sony’s PlayStation Plus service, which costs €60 per year or €8.99 per month, had 47.2 million subscribers as of September 30, 2021, which still gives it an advantage over Microsoft, given that Game Pass currently has 25 million subscribers. .
In addition, the Sony PlayStation 5, which launched in late 2020 around the same time as Microsoft’s latest Xbox, has proven to be a hugely popular and commercial success, and Sony’s only problem was making enough of them to meet demand. During the global shortage of semiconductors.
PlayStation has helped make Sony stock one of the biggest bullish stocks in the stock market in recent months. Sony Group’s activity on the Tokyo Stock Exchange increased by 92% between the start of 2020 and last week.
It is clear, however, that the Activision group provides some of the most popular games for the PlayStation, such as the popular series Call of duty. However, it could be an important consideration for antitrust regulators in the United States and abroad who are likely to review a Microsoft acquisition, including whether it is likely to be an unfair advantage for Sony.
Microsoft is still collaborating with Sony for the cloud
Sony did not respond to Microsoft’s announcement, but the Japanese group mentioned the partnership between the two companies. In May 2019, the two major competitors in the home gaming hardware market, Microsoft and Sony, announced a partnership for online services.
This partnership provides co-development of cloud solutions in Microsoft Azure. They will be used by their services in the video game and streaming markets across the PlayStation and Xbox brands. The agreement also provides for exploring cooperation in the fields of artificial intelligence and semiconductors.
To follow us, we invite you to download our Android and iOS app. You can read our articles and files and watch the latest videos on YouTube.