PlayStation is already feeling the effects of the massive takeover of Xbox.
Microsoft shook the video game world in earnest this week when it was announced that the company was negotiating a deal to acquire Activision Blizzard. The $68.7 billion deal dwarfs anything the gaming business has ever seen before, even overshadowing Microsoft’s monster deal to bring Bethesda on board and making many of its upcoming titles exclusive to Xbox.
Xbox has already hammered home its plans to bring a number of Activision Blizzard titles to Game Pass in the future. It’s also very likely that some of the newly acquired studio’s massive IPs will become Xbox exclusives in the future. Call of Duty and Overwatch becoming Xbox exclusives will change the industry if it happens, and while that potential eventuality is a long way off, PlayStation is already feeling the pressure.
Bloomberg announced that Sony’s market valuation fell 13% in Tokyo on Wednesday after news of Microsoft’s mammoth acquisition. That’s the largest drop Sony’s valuation has seen in a single day since 2008. That 13% represents a staggering $20 billion in value lost less than 24 hours after Sony’s acquisition was announced. A clear sign when you need it that Activision Blizzard moving under the Xbox umbrella poses a major threat to PlayStation and the games it may and may not feature on its consoles in the future.
Xbox piled on the good news during the same announcement in which it unveiled its $70 billion acquisition. Phil Spencer also announced that Game Pass has now surpassed 25 million subscribers. With the likelihood of annual launch-day Call of Duty titles coming to the service in the future, not to mention World of Warcraft, Diablo, Crash Bandicoot, and every other number of Activision Blizzard properties, that number is only going to stay that way growing.
While Sony’s value fell significantly after the acquisition, other studios saw a rebound in the Tokyo market following the news. Square Enix and Capcom stocks were both up more than 3.7%. Analysts said studios with strong IPs under their umbrella, like Activision Blizzard, have risen in value, possibly ahead of Sony and Nintendo trying to retaliate with a Microsoft acquisition or two of their own.
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