Half a month after Microsoft’s $68.7 billion acquisition of Activision Blizzard, SONY announced its $3.6 billion acquisition of Bungie, the developer of “Manifest Destiny” and “The Last Stand” games, on January 1.
SONY CEO Kenichiro Yoshida said in the announcement that Bungie creates and continues to develop the world’s most popular game series, combining value with a passion for sharing the gaming experience with millions of users worldwide. Although Kenichiro Yoshida’s statement did not mention any of his peers, it was clear to everyone that the SONY deal was a knock-on effect of Microsoft’s sky-high acquisition and an arms race for SONY to counter Microsoft’s dramatic increase in gaming volume. Bungie will be acquired by Bungie after the acquisition.
After the acquisition, Bungie will become an independent subsidiary of SONY’s interactive entertainment business and will continue to operate independently, with the right to make independent decisions on game distribution. Bungie was founded in 1991, employs more than 900 people, and has developed popular games such as “Manifest Destiny” and “The Last Stand”.
SONY became the direct target of Microsoft’s full-scale game business upgrade. The day Microsoft announced its acquisition of Activision Blizzard, SONY shares plunged 13%, the biggest one-day drop since 2008. 30% of SONY’s revenue comes from the game business, and investors are worried that Microsoft’s acquisition of an important game company may directly affect the attractiveness of SONY’s game business.