Sony Shares Slide Updates: Sony Group shares dropped 9% on Wednesday after gaming competitor Microsoft announced it would buy developer Activision Blizzard for a record $68.7 billion(approximately Rs. 5,12,375 crore).
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About Sony Shares Slide
While Sony’s PlayStation is often regarded as having a generational advantage over Microsoft’s Xbox, Microsoft’s acquisition of Call of Duty comes at a time when the latter is aggressively developing its Game Pass subscription service.
In the last year, Sony has bolstered its network of in-house game studios and delivered a slew of exclusive hits, including in the Spider-Man franchise, leaving Microsoft scrambling to keep up.
In a letter to clients, Amir Anvarzadeh, a market strategist at Asymmetric Advisors who suggests shorting the company, wrote, “Sony will have a huge job on its hands to stand its own in this war of attrition.”
Sony is a virtual reality pioneer, and it teased a few information about its next-generation headgear this month, but deep-pocketed and non-traditional players like Facebook owner Meta Platforms are investing in the met averse, or virtual online worlds.
Activision’s PlayStation is a big source of cash, complicating any choice by Microsoft to pull titles from Sony systems and squeeze its competitor.
As developments in cloud technology lessen links to the cumbersome gaming hardware that made Sony and Microsoft industry gatekeepers, many industry experts feel that operability across various platforms is critical for the success of a met averse where users can freely game, shop, and work.
In a client note, Jefferies analyst Atul Goyalsaid, “If Microsoft continues to deliver thesegames on (the PlaySation) platform as well, itwould signal that it may be positioning itselffor metaverse in the long-term.”