Microsoft is currently attempting to acquire Activision Blizzard for $68.7 billion, the company’s biggest acquisition ever and the largest buyout in gaming history. If this deal were to go through, it would “no doubt” have an impact on Sony’s position in the market, at least 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.”
Even if Microsoft continues to release Activision Blizzard games on PlayStation, those games will still be released on Game Pass, which will “undermine Sony’s third-party business,” Harding=Rolls said.
“Sony has benefitted from the ability to negotiate timed exclusive content for Call of Duty but this is now under threat.” Of course, Harding-Rolls is referring to Sony’s longstanding deal with Activision to release Call of Duty content for PlayStation users first.
Unfortunately, it looks like Sony is already suffering from the news of this acquisition. The company’s share price fell dramatically after the news broke, losing $20 billion in Sony’s value–its biggest drop since 2008.
Harding-Rolls pointed out another effect of this acquisition. Third-party games that don’t launch on Game Pass “may suffer as the breadth and appeal of content in Game Pass expands.”
He went on to add that Microsoft would have a “formidable production engine” with the buyout of Activision Blizzard, as well as numerous other studios they’ve purchased. Harding-Rolls also stated that Microsoft prosed buyout could trigger another massive deal from another major company just to keep up.
“This deal, its scale and wider industry ramifications, means that the chances of another large acquisition have risen to an extent. Other publishers and competitors will be busy evaluating what this means for their strategies,” he explained.