Sony buys video game developer Bungie for $3.6 billion

Sony is buying prominent video game developer Bungie for $3.6 billion – a blockbuster deal that underscores the intense competition between the PlayStation maker and its main rival, Microsoft.

Bungie is best known as the original creator of Xbox’s “Halo” franchise and the popular “Destiny” series. The developer will be an “independent subsidiary of Sony Interactive Entertainment” once the deal closes, according to Sony.

Sony announced the deal just days after Microsoft acquired Activision-Blizzard, the maker of popular video game franchises such as “Call of Duty” and “World of Warcraft,” in a $69-valued deal. billions of dollars. Tech giants are scrambling to recruit popular developers into the video game industry while vying for customers — especially as the concept of an integrated “metaverse” gains traction.

“We’ve had a strong partnership with Bungie since the launch of the Destiny franchise, and I couldn’t be more thrilled to officially welcome the studio to the PlayStation family,” said Jim Ryan, CEO of Sony Interactive Entertainment. “This is an important step in our strategy to expand PlayStation’s reach to a much wider audience.”

The Sony deal comes amid other tie-ups between game developers and tech giants.
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Sony shares rose more than 4% after the announcement.

A former Microsoft subsidiary, Bungie created “Halo”, one of Xbox’s first flagship franchises, and served as its lead developer until 2010. Bungie parted ways with Microsoft in 2007 and began operating as a independent studio, while Microsoft retained the intellectual property rights to the “Halo”. ” franchise.

Bungie then entered into a long-term publishing deal with Activision, but ended the deal in 2019.

The studio’s current project, the multiplayer shooter Destiny 2, has developed a large player base. Bungie said it is “focused on developing the future of the Destiny universe and the new worlds to come.”

Image from the video game developed by Bungie.
At one time, Bungie worked for Xbox games.
Microsoft/AFP via Getty Images

“Bungie and SIE both believe that game worlds are just the beginning of what our intellectual property will become,” Bungie CEO Pete Parson said in a statement. “Our original universes have immense potential, and with the support of SIE, we will propel Bungie into a global multimedia entertainment company dedicated to fulfilling our creative vision.”

Consolidation in the video game industry has intensified in recent years. Microsoft’s acquisition of Activision Blizzard ranks among the biggest deals in the history of the technology industry.

In a separate deal earlier this month, Take-Two Interactive acquired mobile game developer Zynga for $12.7 billion.