SONY Stock: Why Sony Is Being Called a ‘Loser’ of the Microsoft-Activision Deal

Sony (NYSE:SONY) stock is taking a beating on Wednesday as investors react to a recent deal between Microsoft (NASDAQ:MSFT) and Activision Blizzard (NASDAQ:ATVI).

Sony logo on the side of a building at its offices in Silicon Valley representing SONY stock.

Source: Sundry Photography /

For those that missed yesterday’s news, Microsoft is buying up Activision Blizzard for $68.7 billion. This is one more addition to Microsoft’s game studios that gives it an edge over Sony in the Xbox and PlayStation console war.

Microsoft has been building up its Xbox platform in recent years with purchases of game studios. The company bought Mojang, the developer behind Minecraft, back in 2014. More recently, MSFT picked up Bethesda, the Elder Scrolls and Fallout creator, in 2020.

Now with Activision Blizzard set to join the company, Microsoft is further cementing its position in the console war with a major player. ATVI is behind several major games and series, such as Call of Duty and World of Warcraft. It also owns King, the mobile game developer of Candy Crush Saga.

All of this is just further bolstering GamePass. This is Xbox’s monthly subscription service that brings hundreds of games to gamers for one cheap price. Microsoft has already said it intends to add games from Activision Blizzard to this service, which will only further enhance the library of games players can experience.

So what does this mean for SONY stock? It could be a sign that the company will fall behind Microsoft in the console war. However, it’s worth pointing out that Sony already has a wealth of developers making games for its PlayStation consoles. That includes Uncharted developer Naughty Dog, Ratchet & Clank creator Insomniac Games, Horizon Zero Dawn developer Gurellia, God of War team Santa Monica Studios, and more.

To put it simply, this new acquisition is shaking SONY stockholders, but it doesn’t mean the company is anywhere close to losing the console war with Microsoft.

SONY stock is down 3% as of Wednesday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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