The purchase of Activision will shake up PlayStation, does Sony have what to respond with?

Whatever it does, Sony will lose ground after the purchase of Activision Blizzard. PlayStation fans know this very well, and it is not for nothing that they have asked the Japanese company to respond with a similar movement. Does Sony have a plan to lessen the huge impact of the Microsoft acquisition?

Since the multi-billion dollar deal was announced, rumors of possible buyouts by Sony have been circulating. However, these unsubstantiated reports only cast doubt on the ability of the Japanese to truly respond to their rival. Of course, Sony won’t sit idly by and apparently already has a strategy. But can you do something with it? Let’s see it.

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Is Sony preparing a big purchase?

Some analysts believe that the purchase of Activision Blizzard will motivate Sony to make bold moves. One of them would be to acquire renowned companies to strengthen PlayStation as much as possible. During the last months, several rumors have emerged about it, some more crazy than others. In March 2022, a joke led many gamers to believe that Electronic Arts would join PlayStation Studios. Fans celebrated in a big way, considering it an excellent response to the Microsoft acquisition.

Subsequently, it was said that Square Enix was preparing the ground to join PlayStation and form an alliance. Even gamers asked Sony to take advantage of the opportunity, as it all happened just as Square Enix got rid of Crystal Dynamics and other western teams. However, nothing happened and the rumor loses more and more force.

Ubisoft is still in a difficult situation, so many believe that Sony could come to the rescue and get popular franchises. Last year, there were also reports about a possible purchase of CD Projekt and Kojima Productions, reputable studios that maintain their independence at all costs.

Recently, rumors resurfaced about a possible acquisition of Take-Two Interactive, owners of Rockstar and 2K Games. This is the possible acquisition that players are most excited about, as it involves renowned franchises such as Grand Theft Auto, Bioshock, among many others. All would strengthen the PlayStation catalog quite a bit, just as Activision games will do on Xbox. However, once again we are facing unsubstantiated reports that even Sony has already denied.

Amusing how widely the “Sony is buying Take-Two” rumor has spread, given that it originated from a single Twitter account. Some other tweets from the same account over the last year… pic.twitter.com/Y7R19UJUNB

—Jason Schreier (@jasonschreier) March 7, 2023

The reality is that Sony cannot compete on a one-on-one basis with Microsoft in the ticket and acquisition wars. In this sense, PlayStation is limited compared to Xbox, which is backed by the tech giant and its huge coffers of money. We recently learned that the Japanese company has $5 million dollars to make investments and purchases between now and 2024. With this, it could well acquire several of the aforementioned studies; however, the figure is for the entire Sony Group and not just Sony Interactive Entertainment and PlayStation.

However, the above does not mean that Sony lacks a growth plan. In recent months it has strengthened PlayStation Studios in its own way, with a strategy that is different from that of Microsoft and Xbox, but that will also expand its brand in very important areas of the industry.

In search of growth… organic?

One of the main goals of Jim Ryan, president of Sony Interactive Entertainment, is to expand the reach of PlayStation beyond consoles. To that end, he has made some strategic acquisitions and investments that will undoubtedly pay off in the long run.

It’s no coincidence that PlayStation is betting big on the PC market, VR, mobile, games as a service, and cloud gaming. Neither are the productions that PlayStation Productions prepares for film and television a coincidence. The company wants to cover this and much more to compete and, of course, excel against Xbox on all possible fronts.

In the past few months alone, Sony has acquired Bungie, Heaven Studios, Bluepoint Games, Housemarque, Nixxes Software, Savage Game Studios, and Firesprite. We know, none of them can match Activision Blizzard in scope and development power. However, Sony saw something in all of this equipment that will help further solidify its position in the industry.

Ryan talks about organic growth strongly tied to PlayStation. What is it referring to? Hermen Hulst, head of PlayStation Studios, explained that their strategy is different from Microsoft’s and that they do not seek to compete for the purchase of studios. His goal is to choose very select teams that share the philosophy and values ​​of PlayStation. For this reason, they deeply analyze each possible purchase so that, when closing a deal, they are sure that everyone involved will benefit.

“I’m always looking for people who have a similar set of values, similar creative ambitions, and who work very well with our team, where we can further invest and help them grow as creators. It’s not like we’re going around and just making random acquisitions,” Hulst said.

“PlayStation strengthens with strategic acquisitions, investments and organic growth”

Bungie will be vital to PlayStation Games-as-a-Service and probably the right team to deal with a potential loss of call of duty. Heaven Studios prepares a new IP under the leadership of Jade Raymond, one of the most important creatives in the industry.

For its part, Nixxes Software are experts in PC ports, so they fit very well into the PlayStation plans. With Savage Game Studios, Sony will once again bet on mobile devices with AAA games that will be supported by PlayStation Studios Mobile, a division that it founded in 2022. Firesprite is the studio for Horizon Call of the Mountaina title that was important for the launch of PlayStation VR2.

Bluepoint Games, Housemarque and Insomniac Games have proven that they have what it takes to deliver those exclusives that PlayStation gamers love so much, so they are also vital to the future of the brand.

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Organic growth involves using internal capabilities and resources to increase the development force. This is complemented by acquisitions of very specific studios already established, which enter into this dynamic and form what Ryan calls a virtuous circle.

“We are growing our studios organically and we are growing through acquisitions. We purchased 5 studios during 2021, are in talks with Bungie, and have more planned. This is leading us to a virtuous circle where success begets success,” said the manager in April 2022.

Xbox grows with huge acquisitions like Bethesda and Activision Blizzard, which bring with them valuable franchise packages more than established. Meanwhile, Sony is betting on teams like Heaven Studios, which hasn’t released any games so far, but surely its way of working and ideas fit PlayStation’s long-term strategy.

Forming a studio from scratch is too complicated, no matter if you’re PlayStation or Xbox. This has become more than clear with The Initiative, a team formed in 2018. It is not only about having the best talent in the industry, but also knowing how to manage it. Hence, PlayStation is more cautious with its purchases. In addition, the company has made it clear that it is open to supporting relatively new teams to set the path for them to follow.

Recent reports claim that the company is preparing to acquire Ballistic Moon, a team formed in 2019 and has not released any games either. Despite this, it is made up of a group of veterans who surely caught Sony’s attention with an interesting proposal.

Ryan is keen to acquire more studios for PlayStation, but there’s a chance neither acquisition will be the bombshell many gamers are hoping for. Of course, this raises doubts among many fans of the brand, which seems to be between a rock and a hard place with the purchase of Activision Blizzard and the whole issue of call of duty.

On the other hand, Sony knows that it cannot compete directly in technology or reach with giants like Microsoft, Google and Amazon, which are increasingly gaining ground in video games. So it’s normal that it seeks important partners through investments, another way in which it could minimally dampen the effects of the Activision Blizzard purchase.

Over the past few years, Sony has invested millions in Epic Games, owners of Fortnite, the Unreal Engine and the PC game store that rivals Steam. In total, it has invested $1.45 million in the developer. On the other hand, it also reached an agreement with Kadokawa Corporation to acquire a part of FromSoftware, the renowned studio of elden ring and Dark Souls.

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Will Sony respond to the purchase of Activision Blizzard?

All of the above does not mean that Sony’s strategy is the best or the most effective against Microsoft’s movements. It is a fact that it will not be able to match the shock of the Activision Blizzard purchase, at least not in the short term or with a single acquisition. It could take advantage of any misstep by Microsoft in the management of its upcoming studios and franchises, but it is clear that it will now have to negotiate with its main rival to have big-name games in its ecosystem.

The thing is, Sony and PlayStation aren’t going to get away with it this time around, so they’re going to have to try a lot harder to cope with an increasingly stronger Xbox across the board. Without an economic force like Microsoft’s, the Japanese company is forced to be selective and diversify its business beyond consoles and their iconic exclusives, which take years to arrive and cost billions of dollars.

Sony is actually already shielding itself from the effects of the Activision Blizzard purchase; however, he is in trouble in part because he is so dependent on and clinging to call of duty. For now, PlayStation has one of the strongest positions in the industry and is backed by an equally strong strategy. The acquisition by Microsoft might send you reeling out of your comfort zone, but you clearly have what it takes to adapt. Will your strategy work in the long run? It seems that it is still too early to tell.

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