Bungie Inc, the original creator of the “Halo” videogame and developer of “Destiny,” will be acquired by Sony Interactive Entertainment (6758.T) in a $3.6 billion transaction, marking the latest in a wave of consolidations sweeping the gaming industry.
Bungie will join Sony’s PlayStation family, according to a blog post from the firm, as the Japanese corporation beefs up its network of in-house gaming studios behind bestsellers like “Spider-Man” to compete against cash-rich rivals.
Microsoft Corp (MSFT.O), whose Xbox systems have long trailed Sony’s PlayStation in sales, offered $69 billion for Activision Blizzard (ATVI.O), the producer of “Call of Duty.”
“While this is one of Sony’s biggest-ever acquisitions, the amount paid by Microsoft puts into context the heavy competition faced in this sector,” said Piers Harding-Rolls, gaming analyst at Ampere Analysis.
The video game industry is consolidating quickly in response to the pandemic’s increase in demand, with fresh deals blurring the line between PC and mobile gaming companies in search of new revenue sources.
According to investment banking firm Drake Star Partners, the sector is on track to set a new high of $150 billion in transactions, financing, and IPOs this year.
Take-Two (TTWO.O), the producer of “Grand Theft Auto,” bid $11 billion for Zynga, the maker of “FarmVille,” in just the first month of the year.
Instead of collaborating with studios, big-name firms have been attempting to bring the talent and intellectual property behind famous games in-house, providing them more access to a burgeoning, high-value industry.
