Industry consolidation is fully underway, as independent publishers are being snapped up almost weekly
Sony is buying video game developer Bungie for $3.6 billion as the PlayStation Studio owner moves to counter its rivals as independent producers are caught in what appears to be a burgeoning wave of industry consolidation.
Sony’s offer comes nearly two weeks after competitor Microsoft purchased Activision Blizzard for $68.7 billion to shore up its Xbox gaming subsidiary. A week before that deal, Take-Two Interactive purchased mobile gaming company Zynga for $12.2 billion.
Bungie is the creator behind the blockbuster Halo franchise, produced as a launch title for the Xbox console in 2001, as well as the Destiny franchise, which had two releases in 2015 and 2017.
“In Sony Interactive Entertainment, we have found a partner that fully supports us and wants to accelerate our vision of creating meaningful entertainment experiences that span generations, all while valuing the creative independence that is the heartbeat of Bungie,” said Pete Parsons, CEO and chairman of Bungie, in a statement.
Bungie’s unified theory
Such deals, of course, don’t happen in a matter of weeks. The acquisition speaks to the larger trend of gaming hosts like Sony and Microsoft seeing the value in acquiring gaming publishers with significant gaming franchises and IP to attract consumers. With the rise of interest in the metaverse, and the opportunity for alternative revenue streams, there are likely more transactions in the works.
“We’ve had a strong partnership with Bungie since the inception of the Destiny franchise, and I couldn’t be more thrilled to officially welcome the studio to the PlayStation family,” said Jim Ryan, president and CEO of SIE. “This is an important step in our strategy to expand the reach of PlayStation to a much wider audience. We understand how vital Bungie’s community is to the studio and look forward to supporting them as they remain independent and continue to grow.”
As with Microsoft and Activision Blizzard’s deal, there were questions of whether Bungie’s content would become exclusive, but Sony announced in its statement that Bungie will still self-publish and reach players “wherever they choose to play.” Bungie will still operate as an independent subsidiary of SIE, and will still be run by its board of directors that includes Parsons.
The acquisition is still pending regulatory approval.
In its Q2 earnings announced in October, Sony reported a 27% increase in sales in its game segment YoY. Sales reached $5.7 billion and Sony revenue as $10.8 billion. The company is expected to announce its third-quarter results on Wednesday.
