LogInIt was a bad day for Sony as they lost $20bn.
Horizon Forbidden West
Yesterday was a good day for Microsoft and a bad day for Sony as the PlayStation owner experienced its biggest one-day drop since the global financial crisis, with shares dropping 12.8% after the Activision Blizzard announcement.
There were other consequences as well: shares in Square Enix and Capcom increased by more than 3% as investors believe they can become the next acquisition targets for giants.
Nintendo and Konami got increased shares, too (2.51% and 3.25% respectively), – investors believe Japanese companies might consider domestic mergers to defend against a takeover.
As for Sony, which lost $20bn after the news, the company might now seek a different target that would help the company boost its dominance.
"In two weeks at its results meeting, is Sony really going to have to tell the investors that they plan to grow organically after their rival has just made a $70bn deal? If they are going to look at buying something, they have a big advantage on home turf in terms of M&A," noted industry analyst Serkan Toto.
What do you think about this overreaction in the market? How should Sony reply to get back to the previous level? Share your thoughts in the comments. Also, don't forget to join our new Reddit page, our new Telegram channel, follow us on Instagram and Twitter, where we are sharing breakdowns, the latest news, awesome artworks, and more.