Sony will drop to third place if Microsoft’s acquisition of Activision is successful

Sony will drop to third place if Microsoft’s acquisition of Activision is successful

A new study contradicts even Microsoft’s own statements!

When Microsoft’s acquisition of Activision takes place, after approval by the US Federal Trade Commission, this merger could push Sony down to the third largest gaming company after Tencent and Microsoft.

This comes according to a new report from the Newzoo platform. The company, which specializes in games and esports analytics and market research, believes the combination of revenue from Microsoft and Activision would push the merger into second place, ahead of Sony and Apple and behind Tencent.

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At the moment, Sony comes in second place as the largest video game production and publishing company after the Chinese company Tencent.

A revenue graph compiled by Newzoo shows that the merger of Microsoft and Activision Blizzard would generate a total of $21 billion in revenue, compared to $18.2 billion for Sony. The report also shows worrying numbers for Sony, which has seen a dip in earnings growth recently, while Microsoft posted positive growth of 9.6% and Nintendo of 1.9%.

Newzoo’s report also shows that the trend of mergers and acquisitions is partially growing. While the chart also shows that the merger between Take-Two and Zynga will put it in the top ten between EA and Sea Limited.

However, this contrasts with previous statements made by other analysts such as Niko Partners analyst Daniel Ahmed who stated that Microsoft’s acquisition of Activision would put the company behind Sony and not overtake it, although he used revenue numbers from 2020.

At the same time, Satya Nadella, CEO of Microsoft, also said that his company would remain in third place behind Sony in an interview with the Financial Times in early February of this year where he stated at the time:

Even after this acquisition, we will be in third place in the video game market.

At the time, Nadella acknowledged that the deal was likely to go unimpeded as the merger wouldn’t change the company’s overall position much, but this report from Newzoo may conflict with those expectations.

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