<p>Shares in Japan's Sony Group fell 9% on Wednesday after gaming rival <a href="https://www.deccanherald.com/business/business-news/microsoft-to-buy-activision-blizzard-in-69-billion-metaverse-bet-1072323.html" target="_blank">Microsoft said it will buy developer Activision Blizzard</a> in a record $68.7 billion deal for the industry.</p>.<p>While Sony's PlayStation is widely seen as having a lead in the generational battle with Microsoft's Xbox, the purchase of the "Call of Duty" maker comes as Microsoft is aggressively expanding its Game Pass subscription service.</p>.<p>Sony has strengthened its network of in-house games studios in recent year and delivered a string of exclusive hits including in its "Spider-man" franchise, with Microsoft left playing catch-up.</p>.<p>"Sony will have a monumental challenge on its hand to stand its own in this war of attrition," wrote Amir Anvarzadeh, a market strategist at Asymmetric Advisors who recommends shorting the stock, in a note to clients.</p>.<p>Sony is a pioneer in virtual reality and announced a few teasing details this month of its next generation headset, but deep pocketed and non-traditional players such as Facebook owner Meta Platforms are investing in the metaverse, or virtual online worlds.</p>.<p>PlayStation is a major source of revenue for Activision, complicating any potential decision by Microsoft to remove titles from Sony systems and squeeze its rival.</p>.<p>Many industry observers believe operability across multiple platforms is essential for the success of a metaverse where users can game, shop and work freely as advances in cloud technology weaken ties to the bulky gaming hardware that made Sony and Microsoft industry gatekeepers.</p>.<p>"If Microsoft continues to provide these games to (the PlaySation) platform as well, that would indicate that it may be positioning itself for metaverse in the long-term," Jefferies analyst Atul Goyal wrote in a client note. </p>
<p>Shares in Japan's Sony Group fell 9% on Wednesday after gaming rival <a href="https://www.deccanherald.com/business/business-news/microsoft-to-buy-activision-blizzard-in-69-billion-metaverse-bet-1072323.html" target="_blank">Microsoft said it will buy developer Activision Blizzard</a> in a record $68.7 billion deal for the industry.</p>.<p>While Sony's PlayStation is widely seen as having a lead in the generational battle with Microsoft's Xbox, the purchase of the "Call of Duty" maker comes as Microsoft is aggressively expanding its Game Pass subscription service.</p>.<p>Sony has strengthened its network of in-house games studios in recent year and delivered a string of exclusive hits including in its "Spider-man" franchise, with Microsoft left playing catch-up.</p>.<p>"Sony will have a monumental challenge on its hand to stand its own in this war of attrition," wrote Amir Anvarzadeh, a market strategist at Asymmetric Advisors who recommends shorting the stock, in a note to clients.</p>.<p>Sony is a pioneer in virtual reality and announced a few teasing details this month of its next generation headset, but deep pocketed and non-traditional players such as Facebook owner Meta Platforms are investing in the metaverse, or virtual online worlds.</p>.<p>PlayStation is a major source of revenue for Activision, complicating any potential decision by Microsoft to remove titles from Sony systems and squeeze its rival.</p>.<p>Many industry observers believe operability across multiple platforms is essential for the success of a metaverse where users can game, shop and work freely as advances in cloud technology weaken ties to the bulky gaming hardware that made Sony and Microsoft industry gatekeepers.</p>.<p>"If Microsoft continues to provide these games to (the PlaySation) platform as well, that would indicate that it may be positioning itself for metaverse in the long-term," Jefferies analyst Atul Goyal wrote in a client note. </p>