Sony Loses $20 Bln in Market Value after Microsoft's Deal

Sony shares fell significantly after Microsoft announced its intention to acquire Activision Blizzard for $70 billion yesterday.

Shares of PlayStation Inc plunged more than 13% in the Japanese stock market on Wednesday, January 19, its biggest drop in more than a decade, according to Bloomberg.

Despite Sony's continued success in the Japanese market, analysts say Sony may struggle to keep up with Microsoft if that company continues to operate fully on Game Pass.

"The falling stocks indicate that investors are concerned that Sony may not be able to continue winning if the industry actually shifts away from the hardware-driven model," Morningstar Research analyst Kazunori Ito told Bloomberg.