Sony Interactive Entertainment has agreed to acquire video game developer Bungie Inc. for $3.60 billion.
The deal is one of the company’s most significant acquisitions and the latest in a string of consolidations in the gaming sector.
The Japanese conglomerate aims to strengthen its network of in-house gaming studios to take on cash-rich competitors.
Consequently, the firm’s stock price slightly rose 0.39% or 0.43 points to $111.02 per share.
Moreover, Sony mentioned that the American developer would remain an independent unit, with the option to self-publish.
Bungie is known for its famous multiplayer shooter games, Destiny and Halo. It currently maintains Destiny 2, a videogame previously published by Activision Blizzard.
It also announced its plans to hire more talent across the studio to widen the Destiny franchise and work on new IP.
This deal is the second time that a platform holder acquired Bungie. Microsoft formerly bought the video game company in June 2000, securing its then-upcoming shooter Halo.
Bungie regained its independence shortly in October 2007. Then, it inked a 10-year deal with Activision, leading to the creation of the Destiny franchise.
Meanwhile, the video game industry consolidated rapidly to tap a surge in demand fueled by the pandemic.
The flurry of deals blurred the lines between PC and mobile gaming companies as they dug for new revenue streams.
In line with this, the sector raced to a new record of $150.00 billion in transactions, financing, and IPOs this year.
With the Bungie purchase, Sony marks its way to compete with Microsoft Corporation in acquiring popular developers.
Last January 18, Microsoft pitched $68.70 billion for Activision Blizzard, marking it as the most extensive tech accord.
Accordingly, this deal sent Sony’s stock price to a plunge of 10.01%, the most significant intraday drop since March 2020.
In another mega deal of 2022, “Grand Theft Auto” developer Take-Two Interactive bought “Farmville” maker Zynga for $11.04 billion.
Recently, big-name firms exert efforts to buy talent and intellectual property behind popular titles. This move will give them more access to a growing, high-value market.
Sony already added several developers under its umbrella. This includes video game development studio Valkyrie Entertainment and “Returnal” developer Housemarque.
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