Sony strikes back in gaming wars with acquisition of former Microsoft game developer Bungie

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Sony Corp Group SONY Subsidiary Sony Interactive Entertainment on Monday announced plans to acquire indie video game developer Bungie for $3.6 billion.

What there is to know: Sony is aiming to gain access to Bungie’s approach to live game services and technology expertise through the acquisition. Bungie’s acquisition will help Sony execute its “strategy to expand PlayStation’s reach to a much wider audience,” according to Sony.

After the transaction closes, Bungie will continue to operate independently, retaining the ability to self-publish.

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The Bungie team is focused on the long-term development of its most popular games, as well as creating entirely new worlds in future IP.

“As part of our goal to ‘fill the world with emotion, through the power of creativity and technology’, we will use Sony Group’s diverse range of entertainment and technology assets to support future evolution. of Bungie and its ability to create iconic worlds across multiple platforms and media,” said Kenichiro YoshidaChairman and CEO of Sony Group.

Why is this important: The agreement comes after Microsoft Corp. MSFT $68.7 billion planned acquisition of Activision Blizzard Inc. ATVIas tech companies continue to lean into gaming in anticipation of the Metaverse’s expansion.

Bungie was previously owned by Microsoft before being spun off in 2007. The independent video game developer is responsible for creating some of the industry’s most popular game franchises, including “Halo” and “Destiny.”

Bungie played a big role in the launch of Microsoft’s first Xbox console since “Halo: Combat Evolved” was featured as one of the launch games when the Xbox was released in 2001.

Microsoft’s planned acquisition of Activision raised questions about whether Microsoft would make some of Activision’s most popular game franchises exclusive to the Xbox platform. These questions were answered when executives from Microsoft, Activision and Sony highlighted the existing agreements between the companies.

Related link: Existing agreements between Microsoft, Activision and Sony indicate that “Call Of Duty” remains cross-platform (for now)

Bungie has already clarified that its current and future games will not become PlayStation exclusives. The company answered “no” to the exclusivity questions listed in the frequently asked questions section of a recent blog post.

“We want the worlds we create to expand wherever people play games,” Bungie said. “We will continue to be self-published, creatively independent, and we will continue to lead a unified Bungie community.”

SONY Price Action: Sony traded as low as $91.74 and as high as $133.75 over a 52-week period.

The stock rose 4.7% to $111.84 on Monday afternoon.

Photo: Ian Dick from Flickr.

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