Sony loses USD 20 billion in market value on Microsoft-Activision deal

By Akshay Kedari  | Date: 2022-01-20

Sony loses USD 20 billion in market value on Microsoft-Activision deal

Shares of Sony Group Corp. saw a 13% drop on January 19th, losing a whopping USD 20 billion in market value after rival Microsoft Corp. acquired video game developer Activision Blizzard in a USD 68.7 billion deal.

While Sony's PlayStation is widely accepted to be the more preferred platform over Microsoft's Xbox by gamers, the purchase of the developer of "Call of Duty" might become a gamechanger as Microsoft aggressively expands its Game Pass subscription services.

Notably, Sony has been working on strengthening its in-house games studio networks over the past few years. This move has yielded a series of exclusive hits for the game-maker such as its ‘Spider-man’ franchise, leaving Microsoft in the dust.

However, market analysts are reportedly advising investors to go short of the stock as Sony will now face an enormous challenge to win this war of attrition against Microsoft all by itself.

The company has established itself as a leader in virtual reality and has announced a few details about its next-gen headset, but non-traditional, deep-pocketed players such as Facebook owner Meta Platforms are also heavily investing in the metaverse and virtual worlds.

On the other hand, PlayStation is one of Activision’s major sources of revenue, which makes it difficult for Microsoft to remove titles from Sony and make things more difficult for Sony.

According to sources, if Microsoft continues providing these games to the PlayStation platform in the upcoming years, it will imply that the company seeks to position itself for metaverse in the long term.

Many industry observers now believe that interoperability on more than one platform is a must for the success of a metaverse where users can shop, game, and also work freely. In recent years, the advancements in cloud technology have weakened requirements for the separate gaming hardware that made Microsoft and Sony gatekeepers of the gaming industry.

Source Credits –

https://economictimes.indiatimes.com/markets/stocks/news/sony-slides-on-monumental-challenge-from-microsoft-gaming-deal/articleshow/88985198.cms

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Hyundai’s U.S. investment expected to reach USD 10 billion by 2025

Hyundai’s U.S. investment expected to reach USD 10 billion by 2025

By Akshay Kedari

South Korea's largest carmaker Hyundai Motor Group is reportedly planning to invest an additional USD 5 billion in the U.S. by 2025. The company aims to strengthen its collaboration with technological firms in the country. During a visit to Se...

Amazon Smart Commerce to digitize 10 million small businesses in India

Amazon Smart Commerce to digitize 10 million small businesses in India

By Akshay Kedari

E-commerce behemoth Amazon Inc. has reportedly launched a “Smart Commerce” initiative in India, aiming to digitalize 10 million small businesses, allow for USD 10 billion worth in exports, and create 2 million jobs by 2025. During the ...

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

By Akshay Kedari

After Ukraine’s invasion, multinational fast-food giant McDonald's Corp. is reportedly planning to sell all its restaurants in Russia, pulling operations from the nation after 30 years. The world's biggest fast-food chain closed 847 ...

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

By Akshay Kedari

GetHenry, a Berlin-based company that offers couriers and logistics organizations electric last-mile delivery bikes, has reportedly raised USD 17.4 million seed round to grow its operations across Europe. The latest investment round was led by LocalG...

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

By Akshay Kedari

Italian luxury sports car manufacturer Ferrari S.p.A. will equip its much-awaited Purosangue SUV with a 12-cylinder engine, as it focused more on fuel-efficient models. Confirming the news, Ferrari Chief Executive Benedetto Vigna claimed that the com...