Japanese tech giant Sony suffered its biggest one-day drop in market share since the global financial crisis in the Tokyo market following Microsoft’s $75bn (£55bn) bid sterling) on Call of Duty maker Activision Blizzard.
Sony closed down 12.8%, following Microsoft’s overnight announcement that sent shockwaves through the industry.
While the announcement wiped $20bn (£15bn) from Sony’s valuation, according to Financial Times reports, it boosted investor confidence in Japanese publishers like Square Enix and Capcom, which have all saw their share increase by around 5%.
The deal is the latest – and biggest – game designer to be bought by Microsoft as it seeks to expand its games and console offering: signaling significant competition for companies like Sony.
Assuming the deal is successful, overcoming various anti-trust hurdles, the acquisition will make Microsoft the third-largest gaming company by revenue, just behind Tencent and Sony.