Bungie Inc, the creator of the “Halo” game and producer of “Destiny,” will be acquired by Sony Interactive Entertainment in a $3.6 billion transaction, marking the newest in a series of restructurings engulfing the gaming market.
Bungie will join Sony’s PlayStation clan, according to a blog article from the firm, as the Multinational corporation beefs up its infrastructure of in-house gaming firms with bestsellers like “Spider-Man” to combat against cash-rich competitors. Microsoft Corp., whose XBox console games have long trailed Sony’s PlayStation in revenues, earlier in the month proposed a staggering $69 billion for “Call of Duty” manufacturer Activision Blizzard.
“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 company is situated in Bellevue, Washington. When Bungie was controlled by Microsoft prior turning private in 2007, it focused on the “Halo” game series. “Marathon” and “Myth” are two other games on which it has worked.
Bungie currently intends to add more expertise throughout the firm for “Destiny 2,” a previously released videogame by Activision Blizzard.
The video game industry is merging quickly in response to the pandemic’s spike in demand, with fresh acquisitions blurring the boundaries among PC and mobile video game companies since these companies seek new sources of revenue.
As per corporate finance company Drake Star Partners, the industry is on track to set a new high of $150 billion in transactions, funding, and Initial public offerings this year.
Take-Two, the producer of “Grand Theft Auto,” bid $11 billion for Zynga, the developer of “FarmVille,” just in the first month of the year.
Instead of collaborating with studios, big-name firms have been attempting to bring the expertise and proprietary information behind famous games in-house, providing them additional accessibility to a burgeoning, high-value industry.
Sony has recruited several developers to its roster, including Valkyrie Entertainment, a videogame production studio, and Housemarque, the creator of “Returnal.
“This (Bungie deal) is an important step in our strategy to expand the reach of PlayStation to a much wider audience,” said Jim Ryan, head of the Sony Corp unit responsible for PlayStation.
Bungie will operate as a separate division of Sony Interactive Entertainment, with a board of directors led by CEO Pete Parsons.
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