Sony stock price drops after Microsoft and Activision Blizzard deal

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Earlier this week Microsoft shocked the gaming community when sharing Plan to buy Activision Blizzard for a massive $75 billion cash deal. While this was huge news for the Xbox brand, it caused waves in the gaming community, affecting Microsoft’s main rival in the gaming console space, Sony.

Based on reportShares of Sony fell sharply Wednesday morning after news of the Xbox deal was revealed on Tuesday. The Japanese entertainment company closed 12.8% lower on Wednesday, but it’s not just Sony that feels the impact of the massive deal.

With speculation growing that Sony would acquire a new big-name developer itself, shares in Square Enix and Capcom both rose more than 3%.

Sony enters 2022 with a record-high share price not achieved in 21 years. Overall valuation of companies plummeting 20 billion dollars follow the news. The stock price drop was the biggest since October 2008, however, at the time the stock price fell as the company was forced to recall laptops due to a fire risk.

Although this landmark deal between Microsoft and Activision Blizzard has been announced, it will not be completed until mid-2023. At the conclusion of the controversial agreement, Activision Blizzard head Bobby Kotick is expected Ant will leave the company.

With plenty of time before the deal closes, there may be further developments from both Microsoft and Sony to report on in the gaming world.