Sony announces a $3.6 billion acquisition of former Halo developer Bungie

On Feb. 1, half a month after Microsoft's $68.7 billion purchase of Activision Blizzard, Sony today announced a $3.6 billion acquisition of Destiny and Halo game developer Bungie.

▲ Sony CEO Kenichiro Yoshida and Microsoft CEO Nadella

Sony CEO Kenichiro Yoshida said in the announcement that Bungie has built and continued to develop the world's most popular video game series, combining their value with the enthusiasm of users to share the gaming experience, connecting millions of users around the world. Although Kenichiro Yoshida did not mention any of his peers in the transaction statement, it is clear to everyone that Sony's deal is a chain reaction brought about by Microsoft's sky-high acquisition, and it is Sony's arms race in response to Microsoft's sharp increase in size in the game industry. Jim Ryan, CEO of Sony's interactive entertainment business and head of PlayStation's game business, has made it clear that more acquisitions will be made in the next step to incorporate the PlayStation game business.

However, it should be emphasized that Bungie will continue to operate independently as an independent subsidiary of Sony Interactive Entertainment after the acquisition is completed, and has independent decision-making options in game distribution. This strategy is significantly different from Microsoft's previous acquisition of Bethesda. Founded in 1991, Bungie currently has more than 900 employees and includes popular game titles such as Destiny and Halo.

Obviously, Sony has become the direct impact of Microsoft's comprehensive upgrade of the game business. The competition between the two giants in the game industry is becoming increasingly fierce. On the day Microsoft announced its acquisition of Call of Duty and World of Warcraft developer Activision Blizzard, Sony's stock plunged 13 percent, its biggest intraday drop since 2008. 30% of Sony's revenue comes from the games business, and investors are worried that Microsoft's aggressive acquisition of game makers could directly affect the attractiveness of Sony's game business.