Sony hit by Microsoft’s Activision deal

Shares in Japan’s Sony Group has fallen more than 8% after Microsoft announced a record $68.7 billion acquisition deal for developer Activision Blizzard.

Experts and analysts alike see Sony being dealt a thud by the deal though Sony’s PlayStation is widely seen as having a lead in the generational battle with Microsoft’s Xbox.

Microsoft’s purchase of the “Call of Duty” maker comes as Microsoft is aggressively expanding its Game Pass subscription service.

Reuters reports that Asymmetric Advisors’ market strategist recommended shorting Sony saying it “will have a monumental challenge on its hand to stand its own in this war of attrition.”

PlayStation is a major source of revenue for Activision, complicating any potential decision by Microsoft to remove titles from Sony systems and squeeze its rival.

Leave a Reply

Your email address will not be published.