Microsoft's Activision Blizzard Deal Won't Hurt Sony's PlayStation Business
Sony's (NYSE: SONY) stock recently tumbled to a three-month low after Microsoft (NASDAQ: MSFT) announced its planned takeover of Activision Blizzard (NASDAQ: ATVI) for $68.7 billion. Sony's stock dropped for two simple reasons -- investors assumed Microsoft would add Activision's games to its subscription-based Game Pass service and that it would turn Activision's future games into exclusives for Xbox consoles and Windows PCs.
That initially seems like a one-two punch for Sony's gaming and network services (G&NS) business, which generated 27% of its revenue and 28% of its operating profits in the first half of fiscal 2021. But if we take a closer look at this massive deal, we'll see that those fears are largely overblown.
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Source Fool.com
