Microsoft's blockbuster purchase of video game company Activision Blizzard could pose a serious threat to Sony.
Shares of the maker of the PlayStation console, a major rival to Microsoft's Xbox, plummeted nearly 13% in Tokyo on Wednesday after Microsoft announced the nearly $70 billion deal. That was the worst plunge in Sony 's stock price since 2008, according to data provider Refinitiv.Microsoft and Sony have competed for decades with iterations of their Xbox and PlayStation consoles, often wooing video gamers with exclusive titles and features.
Microsoft already had its eyes on building out its content library, especially during the coronavirus pandemic, when more people were staying at home and gaming became an even more attractive entertainment option. In September 2020, Microsoft bought ZeniMax, the parent company of Bethesda Softworks, whose studios have produced critically acclaimed franchises including"Elder Scrolls,""Fallout" and"Doom.
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