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The recent acquisition of Activision Blizzard by Microsoft has had far-reaching consequences in the gaming industry. On October 13, Microsoft completed its $68.7 billion transaction, marking not only the largest acquisition in the gaming sector but also the biggest-ever deal in the tech industry. This development is causing significant ripple effects, putting Sony, a key player in the gaming space, under pressure to make strategic moves. This article will delve into what industry analysts are saying regarding Sony's position and future prospects. Sony's Pressure to React Piers Harding-Rolls, the Head of Games Research at Ampere Analysis, recently shared his views about the situation with GamesIndustry.biz. According to Harding-Rolls, Sony is surely feeling the pressure to respond to Microsoft's game-changing acquisition. His observations align with a broader view that many have postulated: Sony will likely pursue more acquisitions to continue competing effectively with Microsoft's expanding roster of game studios. Sony's Historical and Future Acquisitions Sony has signaled an interest in new acquisitions throughout 2023, adding credence to Harding-Rolls's predictions. The tech conglomerate was contemplating the spinoff of its financial services unit as early as May. The move aims to fund its future mergers and acquisitions. However, it's noteworthy that Sony's acquisitions in the gaming sector have slowed in the last year. After completing five acquisitions in 2022, the company only acquired Washington-based Firewalk Studios in 2023. Microsoft's Strategy with Activision Blizzard As for Microsoft's plans with Activision Blizzard, Harding-Rolls doesn't foresee any immediate restructuring of Activision Blizzard's core operations. Bobby Kotick, the CEO of Activision Blizzard, has already announced that he will step down in 2024. Still, a change at the top doesn't necessarily mean immediate changes throughout the organization. Harding-Rolls expects Microsoft to let Activision Blizzard operate as a separate entity, much like it did with ZeniMax Media after its acquisition in early 2021. This strategy will effectively give Microsoft three independent game publishing arms: Activision Blizzard, ZeniMax, and Xbox Game Studios. Current and Future Impacts on Sony PlayStation is already feeling the impact of Microsoft's previous acquisition of ZeniMax. However, the effects of the new Activision Blizzard deal may take some time to materialize. This delay is partially because of a July deal that commits Microsoft to keeping the Call of Duty franchise, Activision Blizzard's flagship, on PlayStation for the foreseeable future. Final Thoughts The acquisition of Activision Blizzard by Microsoft has certainly shifted the dynamics of the gaming industry. While Microsoft is expanding its footprint, Sony is facing pressure to reinforce its position. Whether Sony will ramp up its acquisition activities to counter Microsoft's growing influence is a subject of great interest. Only time will tell how Sony will adapt its strategies in this increasingly competitive landscape. Also Read:

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Sony’s Reaction to Microsoft’s Activision Blizzard Acquisition Analyzed by Industry Experts