Microsoft's Buyout Of Activision "No Doubt Weakens" Sony, Analyst Says
Microsoft is proposing to acquire Activision Blizzard for $68.7 billion, its biggest ever buyout and the largest acquisition in gaming history by a wide margin. The sale, should it go through, would «no doubt» have a material effect on Sony's position in the video game market, according to one analyst.
Piers Harding-Rolls of Ampere Analysis said in a blog post, «There is no doubt that this deal weakens [Sony's] position in the market.»
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Even if Microsoft continues to release Activision Blizzard games on PlayStation, their inclusion on Game Pass will «undermine Sony's third-party business,» the analyst said.
«Sony has benefitted from the ability to negotiate timed exclusive content for Call of Duty but this is now under threat,» Harding-Rolls said of Sony's longstanding deal with Activision to release Call of Duty content first on PlayStation.
There has already been an impact on Sony's business, it seems. The company's share price slid dramatically following the news about Microsoft and Activision Blizzard, wiping out $20 billion in Sony's value in the biggest drop since 2008.
Microsoft's buyout of Activision Blizzard could have other ripple effects as well, Harding-Rolls said. Third-party games that don't launch on Game Pass «may suffer as the breadth and appeal of content in Game Pass expands,» he said.
Harding-Rolls went on to say that Microsoft would have a «formidable production engine» with the
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