Sony Stock Takes $20 Billion Hit After Microsoft Announces Activision

Date:

Spread the love

During Wednesday trading, Sony Group Corp’s stock shares fell 13% on the Tokyo Stock Exchange. According to analysts, this $20 billion drop in valuation results from Microsoft’s recent announcement that it will be acquiring Activision Blizzard, one of the biggest publishers in the industry. This is the highest daily loss for Sony in 14 years and might shake faith in the PlayStation brand for some.

Why Did Sony’s Stock Prices Drop?

Xbox Game Studios

Xbox Game Studios

Activision Blizzard is an immensely profitable publisher, and it owns a host of valuable IPs and development studios. Microsoft wants to bolster its Xbox Game Pass service with exclusive content, and it’s doing so by acquiring some of the biggest names in gaming. Regardless of Microsoft’s promise that some titles from its first-party studios will remain multi-platform, the end goal is to make Xbox more appealing as a console and as a platform.

Call of Duty is a yearly best-seller despite the criticism heaped on it. Losing that and other titles when they potentially become Xbox exclusives would be a blow to the PlayStation brand (through no fault on Sony’s part). The loss in stock value shows lower confidence from investors.

Sony’s approach has served it well so far. The company has been reluctant to deviate from the traditional publishing model but has kept the pressure on Microsoft with a bevy of critically-acclaimed exclusives. However, it seems like Sony is willing to adapt, and there’s evidence that it’ll deploy a new version of its game subscription service soon. How it’ll differ from PlayStation Now isn’t known, but we can hypothesize that it’ll include day-one access to first-party titles. An official announcement and deployment of this new service will likely go a long way toward recovering the dip in Sony’s stocks.

The big question on our mind is, what’s Sony’s next step? We hypothesized that the company might purchase a studio (or a few), and this blow to the company’s valuation makes us think that’s an even stronger possibility in the near future.

In other news Reddit’s co-founder thinks “play-to-earn” is the future of gaming, and Carrie-Ann Moss is voicing a new character in Horizon Forbidden West.

[Source: Bloomberg]

View Original Article Source Here

Get Paid To Write App Reviews

LATEST POSTS

Related articles

Outlast 2: Full Game Walkthrough (4K 60fps)

Outlast 2 Game Movie. This is a full walkthrough of the entire game with no commentary on...

The best Tiny Tina’s Wonderlands builds

The Tiny Tina's Wonderlands build system will be pretty familiar to anyone who's played the numbered Borderlands entries...

Among Us Sees Off DDoS Imposters After A Weekend Offline

Image: InnerslothAmong Us servers appear to be back up and running after a weekend of disruption following a...

Ratchet & Clank 60 FPS update live early

Ratchet & Clank is now playable in 60 FPS on PlayStation 5, developer Insomniac Games has...
This Week On Xbox: April 08, 2022
Next Week on Xbox: February 28 to March 4
Road 96 Is Now Available
Roguelike Deckbuilder Roguebook Available Now for Xbox One and Xbox
SEGA’s Five Year Super Game Plan Includes AAA Games But
Roblox Job Listing Suggests It’s Finally Coming to PlayStation
Official PlayStation Podcast Episode 426: Returning
PS Plus Free Game Deal Was Devastating for Oddworld Soulstorm
Among Us Sees Off DDoS Imposters After A Weekend Offline
Amazon US Launches Pokémon T-Shirt Subscription Service
Kirby And The Forgotten Land Bags The Franchise’s Biggest UK
Review: The Cruel King and the Great Hero (Nintendo Switch)
The best Tiny Tina’s Wonderlands builds
Where is Xur this week and what is he selling?
Dying Light 2 devs are working on new game difficulties,
Elden Ring’s bugged PvP shield spell is mightier than any
Outlast 2: Full Game Walkthrough (4K 60fps)
Donkey Kong 64
Video Game History | Mario, Minecraft & More!
Demon’s Souls (Remake – PS5)
Uncharted 3: Drake’s Deception
God of War: Ascension
Warcraft 3: Reforged – Cinematic Trailer
Battlefield 1 Official Turning Tides Trailer
Ratchet & Clank 60 FPS update live early
DokeV’s New Trailer Shows off Explosively Colorful Gameplay
Kingdom Hearts 4 and Missing Link Websites Now Open
Xbox back compat games added to xCloud streaming service