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Could Microsoft Really Buy Sony?

Can we witness the biggest acquisition in history?

January 18, 2022

Microsoft shocked the entire gaming world today, after announcing that it has acquired the gaming giant Activision Blizzard for a mind-boggling deal costing around $67B.

In the past year or so, Microsoft has been going all out on the gaming front with Xbox. We have witnessed a massive number of titles arriving on Xbox Game Pass, which has been Microsoft’s main trump card against Sony. Also, the Bethesda acquisition was already quite a lot to bolster the list of developers Microsoft has up its sleeves.

  • MORE: What Does Microsoft’s Acquisition Of Activision Mean For PlayStation?

With so many fireworks happening from at Microsoft’s end, it was quite obvious that Sony would be responding as well, although we did have a fair idea of what it could be. The rumors which have been going on for months finally came to life, and Sony announced that it has acquired Bluepoint games, the team behind some excellent remakes such as Demon Souls. Along with that, we also witnessed the Housemarque acquisition, which came off as a rather surprising announcement.

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Could Microsoft Really Buy Sony?

Today, Microsoft announced that it has acquired Activision Blizzard. If you read this news for the first time, you might be wondering that you are still in a sleep-haze, but let us assure you that is not the case. This news came off as a shocker, considering recently Phil Spencer had stated that they are re-evaluating their relationship with Activision.

After the acquisition, there is a storm of comments on social media, and people are coming up with a lot of theories. Many believe that Microsoft will eventually acquire Sony as well, and start pretty much a monopoly in the video games industry. And that has got many fans wondering if that is actually possible.

So let’s get to the numbers first. Microsoft has a market cap of $2.3T, while Sony has a market cap of $`145B. On paper, it would seem that it is quite easy for Microsoft to acquire Sony, but the real scenario is far far from it. A company’s market cap doesn’t totally define its cash reserves, and so it just doesn’t state anything about Microsoft’s ability to buy Sony. If we consider the Blizzard scenario, for instance, Microsoft had to do an appraisal of its pocketbook to afford this deal. Now Sony will cost reportedly more than twice the amount, so you can pretty much guess it will be a herculean task to pull it off.

And more importantly, before we can talk about if Microsoft can acquire Sony, it is quite pivotal to consider when Sony wants to be acquired or not. It is very highly unlikely, considering on the console forefront, the PlayStation still surpasses Xbox by a good margin. As per December stats, the PlayStation 5 is 5 million units ahead of the Xbox Series S/X, so it makes absolutely no sense for Sony. Moreover, these numbers are when we haven’t seen any major releases yet and there is still a massive shortage of consoles. With games like Horizon Forbidden West and God of War Ragnarok coming this year, the demand for PlayStations is going to get even higher, and we might end up seeing the gap widening even further.

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Md Armughanuddin
@armughanuddin

Md (He/Him) is the Head of Content- India for DualShockers. He is pursuing Computer Science Engineering and is really passionate about gaming and technology. You can find him cracking complex coding problems during the day, and covering the latest happenings in the industry at night.

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