Sony Share Price Drops 13% After Microsoft Buys Activision

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Sony: After Microsoft announced the acquisition of Activision Blizzard, Sony’s stock price plummeted, down 13%. While it may sound like a small amount, that percentage was a multibillion-dollar hit.

According to information from Bloomberg, the PlayStation maker would have lost approximately US$ 20 billion of market value in just one day thanks to the action of Xbox. This would be the company’s biggest drop since 2008.

That huge amount of money didn’t just come out of Sony’s coffers, of course, just meaning that the market reaction caused the unit value of each company’s share to close at a little less. The Japanese gaming giant is expected to recover soon.

For Amir Anvarzadeh, from Asymmetric Advisors, “Sony will have a monumental challenge on its hands” from now on. According to him, “with Call of Duty possibly being added exclusively to Game Pass”, the winds are not in PlayStation’s favor.

With over 25 million Xbox Game Pass subscribers, Microsoft announced yesterday that it was acquiring Activision Blizzard, adding the company to the growing backlog of Xbox Game Studios. The transaction was carried out with the shares being purchased at US$95, closing a total value of almost US$69 billion.