Sony Estimates $1.5B Loss Due To Microsoft's Activision Blizzard Acquisition: 'Our Pillars Are Already Dated'
Portfolio Pulse from Rounak Jain
Sony Group Corp. anticipates a $1.5 billion loss by 2027 due to Microsoft Corp.'s acquisition of Activision Blizzard, viewing it as a threat to its console and subscription businesses. Internal documents from the Insomniac hack reveal Sony's concerns about Microsoft's potential to dominate with Activision's strategic assets. Despite Microsoft's commitment to provide Call of Duty on PlayStation for ten years, Sony fears Microsoft could manipulate release schedules to its advantage.
December 21, 2023 | 10:49 am
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NEGATIVE IMPACT
Sony expects a $1.5 billion loss by 2027 due to Microsoft's acquisition of Activision Blizzard, which could impact its console and subscription services.
The anticipated loss is directly tied to Sony's business, and the internal documents suggest a high level of concern. The negative impact on Sony's stock is likely due to the perceived threat to its gaming console and subscription market share.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Microsoft's acquisition of Activision Blizzard is seen as a strategic move that could potentially disrupt Sony's market position in the gaming industry.
Microsoft's acquisition is perceived as a threat by Sony, indicating that Microsoft could strengthen its position in the gaming market. This could potentially lead to a positive impact on Microsoft's stock as it may gain a competitive advantage.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 80