Why Sony and Microsoft are gobbling up game companies

This week’s acquisition of Bungie by Sony – maker of the Playstation line of consoles – is just the latest move by big companies to expand their reach into gaming.

By Shelly BrisbinFebruary 3, 2022 11:47 am, , ,

It began when Take Two bought Zynga, the studio behind mobile games like Farmville. Then Microsoft acquired Activision Blizzard for $69 billion. This week, Bungie got scooped up by Sony.

Why are gaming companies attracting so many buyers? Tech expert Omar Gallaga says some are about cashing in on a low stock price, while other acquisitions give the new owners exposure to platforms where they haven’t been before.

Highlights from this segment:

– Bungie, creators of the popular Halo, and a former part of Microsoft, is attractive to Sony because of its current Destiny offering, and a forthcoming franchise that has yet to be announced.

– Activision Blizzard has faced withering criticism from employees who accuse company leadership of tolerating or participating in sexism, and creating a toxic culture. Stock in the maker of Call of Duty, Diablo and other major games has lost a lot of value, and the purchase was a bargain for Microsoft.

– Take Two wants to add mobile gaming to its portfolio, which is where the Zynga acquisition comes in.

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