Microsoft scores a major victory in the so-called ‘console war’ between Xbox and the Sony Playstation, as it acquires the world’s biggest game publisher Activision Blizzard in the US$69bn deal announced on Tuesday.
Well, at least the stock market says so.
Sony shares shed some 7% in Japan following the news. So, that’s a bit more than US$10bn wiped off the value of one of the largest consumer electrics groups because a competitor in one business is beefing up its arsenal.
Elsewhere, other major game publishers saw their share prices rise strongly as speculators bet on who might be the next takeover target.
Take-Two Interactive – the owner of Grand Theft Auto which earlier this month agreed the acquisition of mobile gaming firm Zynga for close to US$13bn – climbed around 5% to close Tuesday just above US$154 per share.
Meanwhile, FIFA and Madden NFL game developer Electronic Arts rose around 7.5%.
Paris and OTC listed Ubisoft Entertainment, which owns the Far Cry and Assassins Creed franchises, has gained close to 15%.
In London, where a number of the larger indie game publishers are listed, some shares were also stronger.
Frontier Developments advanced 7% whilst indie peer Team17, itself on the acquisition trail having agreed three deals for nearly US$200mln in recent weeks, was less moved.