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Sony’s stock value takes a big hit following news of Microsoft/Activision deal

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Published onJanuary 19, 2022

published onJanuary 19, 2022

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It seems the knock-on effect of Microsoft indirectly challenging PlayStation gaming supremacy with itsActivision/Blizzard acquisitionis a direct hit to Sony’s stock value.

After news broke about Microsoft’s mega acquisition price tag of $68B for game publisher Activision, investors and stock analysts began shorting Sony’s stock the tune of almost $20B.

The single day loss represents a 13 percent drop to Sony shares that has only been matched in the company’s history when it had to recall 100,000 laptops because of fire hazard concerns back in 2008.

Presumably, the hit to Sony’s evaluation isa momentary knee-jerk reactionfrom investors who may be fearing a shortsighted future where Microsoft removes access to high profile titles such as CoD, Warcraft, Diablo, Overwatch, Hearthstone and even Candy Crush from the PlayStation platform.

There is no doubt that this deal weakens Sony position in the market,” Piers Harding-Rolls, games research director at Ampere Analysis, said in a note published Wednesday.

Whether or not Activision Blizzard’s content is progressively made exclusive to Xbox platforms and services, inclusion of new releases into Xbox Game Pass for several major game’s franchises, including Call of Duty, will undermine Sony’s third-party business. Sony has benefitted from the ability to negotiate timed exclusive content for Call of Duty but this is now under threat.

A few hours removed from the mania, some analysts have already pointed to a potential overreaction to the, yet, still developing news of Microsoft’s acquisition.

Sony continues to invest in first party titles, as well having a war chest of its own to strategically acquire its own stable of developers to compete with.

However, Microsoft isn’t spending $68B to allow Sony to maintain its current dominant position in gaming.

As Harding-Rolls mentions, timed exclusives may be in danger for Sony going forward but losing $20B on the notion seems a tad excessive for the company right now.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

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Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low#

Copilot in Outlook will generate personalized themes for you to customize the app#

Microsoft will raise the price of its 365 Suite to include AI capabilities#

Death Stranding Director’s Cut is now Xbox X|S at a huge discount#

Outlook will let users create custom account icons so they can tell their accounts apart easier#

Sony’s stock value takes a big hit following news of Microsoft/Activision deal#