Sony acquires video game studio Bungie

SAN FRANCISCO

PlayStation maker Sony announced a $3.6 billion agreement on Jan. 31 to buy U.S. video game studio Bungie, creator of hits like “Halo” and “Destiny,” as a gaming industry battle heats up with Microsoft.

Sony’s deal comes weeks after Microsoft unveiled a landmark $69 billion pact to acquire “Call of Duty” maker Activision Blizzard, which Microsoft says would make it the third-largest gaming company by revenue behind Tencent and Sony.

Bungie is based not far from Microsoft headquarters in the U.S. state of Washington, and its “Halo” franchise is considered to be among the video games that contributed to the popularity of Xbox consoles.

“This is an important step in our strategy to expand the reach of PlayStation to a much wider audience,” Sony Interactive Entertainment chief Jim Ryan said of the Bungie buy.

Since it was founded in early 1991, Bungie has created games for play on rival PlayStation and Xbox consoles as well as on computers powered by Microsoft Windows software. Bungie is to remain an independent studio, making games for play on competing devices, according to Sony.

The video game sector is booming with publisher Take-Two announcing a deal in January this year to acquire “Farmville” creator Zynga for $12.7 billion.

Analysts believe more acquisitions are on the horizon.

The challenge is that there are not many buyers out there who can afford companies like that, according to DFC Intelligence analyst David Cole.