Sony (SONY) is going on the offensive after Microsoft’s (MSFT) announcement that it would buy Activision-Blizzard (ATVI)…

On January 31, the Japanese technology giant said it would purchase major video-game developer Bungie for $3.6 billion. 

Through the agreement, Sony will gain access to the Halo-maker’s hit franchise Destiny. While Destiny may not be as well known as Halo, its original release in 2014 marked the largest launch of any new video-game franchise ever. 

Since then, Destiny has consistently made $100 million to $500 million in revenue per year. And now that Sony is taking over, it will very likely benefit from Destiny’s massive player base, revenue, and games-as-a-service business model. 

It will also provide Sony the opportunity to fill a niche that it has largely lacked in comparison to Microsoft. Even though Sony has been considered the top player in the “console war,” its video games have mostly consisted of single-player titles.

And while this focus has helped its first-party games gain critical acclaim – as well as bolster its console’s sales – they require long development times and are often “one-and-done” experiences. 

On the flip side, Microsoft has primarily focused on multiplayer titles and recurring revenue services. 

This is even more evident now that it has launched Halo Infinite using the games-as-a-service business model. And its purchase of Activision-Blizzard to acquire franchises like Call of Duty, Overwatch, and World of Warcraft only adds to this point. 

So, while Sony’s purchase of Bungie pales in comparison to Microsoft’s $76.2 billion spent on Bethesda and Activision-Blizzard, the value of Destiny’s recurring revenue alone should be enough to help it better compete in the newly-dubbed “content war.”

And as this trend continues, we’ll likely see further consolidation moving forward. In turn, publishers such as Electronic Arts (EA), Take-Two Interactive (TTWO), and Roblox (RBLX) – among others – could ultimately end up as acquisition targets as well.

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