Sony shares dropped by more than 10% on Wednesday after competitor Microsoft Corporation (MSFT) paid a record $68.7 billion for developer Activision Blizzard Inc (ATVI).
In recent years, Sony has bolstered its network of in-house game studios, resulting in a slew of exclusive hits like Spider-Man, a business venture. Microsoft had been straining to keep up. By 4:58 a.m. GMT, the company’s Tokyo shares had fallen 10.22% to $111.40.
Sony’s PlayStation (SONY) is largely regarded as having an advantage over Microsoft’s Xbox in the generational fight. However, with the purchase of Activision, the creators of the Call of Duty video game series, Microsoft’s aggressive expansion of its Game Pass subscription service will be aided by this video game.
Sony has been studying virtual reality and published a few teaser features about its next-generation headgear earlier this month, indicating that it is responding to the latest trends. However, other market participants, such as Meta Platforms, which owns Facebook (FB), are already ahead of the curve by investing in the metaverse.
Meanwhile, because PlayStation is a significant source of revenue for Activision, any moves by Microsoft to remove titles from Sony’s system could be complicated.
Some industry watchers argue that a successful metaverse, which allows users to freely game, shop, and work, requires operability across numerous platforms.
Japan’s stocks fell after the market closed on Wednesday, owing to losses in the Paper & Pulp, Railway & Bus, and Real Estate sectors. As a result, the Nikkei 225 index fell 2.80% at the close in Tokyo, hitting a fresh three-month low.
After the close on Wednesday, stocks in Australia fell due to losses in the IT, gold, and healthcare sectors. The S&P/ASX 200 index lost 1.03 percent at the Sydney closing.
The Australian dollar rose 0.02 percent to 0.71, while the Australian dollar declined 0.16 percent to 82.18. At 95.64, the US Dollar Index Futures were down 0.08 percent.