News Profit's Takes

Sony Buys Bungie For $3.6B

Sony Interactive Entertainment recently announced it had purchased Bungie Inc. for $3.6 billion. According to, Bungie will act as “an independent subsidiary” of Sony run by a board of directors, CEO Pete Parsons, and the rest of the studio’s management team once this deal closes.

“We’ve had a strong partnership with Bungie since the inception of the Destiny franchise, and I couldn’t be more thrilled to officially welcome the studio to the PlayStation family,” said Jim Ryan, the President of Sony Interactive Entertainment. “This is an important step in our strategy to expand the reach of PlayStation to a much wider audience. We understand how vital Bungie’s community is to the studio and look forward to supporting them as they remain independent and continue to grow. Like Bungie, our community is core to PlayStation’s DNA, and our shared passion for the gamer and building the best place to play will now evolve even further.”

Sony has said that Bungie will continue to operate as a multiplatform studio. Additionally, Bungie will have the option to “self-publish and reach players wherever they choose to play.”

Bungie Inc. is a video game development company based in Washington that was founded in 1991. The organization is most famous for launching Halo 2, Halo 3, Halo: Reach, and the Destiny video game franchise.

The Profit‘s Take:

It’s shocking that we think of $3.6 billion as a “small” purchase. It’s not unreasonable to think this (the news at least) came as a response to Microsoft buying Activision-Blizzard. $3.6 billion is what Disney paid for Star Wars. Unfortunately for Sony, the Destiny franchise is not as valuable as Star Wars. However, in the world we live in, that’s the price you pay for a major gaming studio.

This announcement was a kneejerk reaction. It’s the equivalent of the Cold War’s “MAD” (Mutually Assured Destruction) concept. Sony knows that Microsoft has a stable of games that they can make exclusive at any point. Sony retaliates by buying studios so that they can have a stable of games that can be made exclusive if necessary. In all likelihood, neither company will make any games exclusive because they know the other business will respond with their own exclusivity measures. Everybody here wants to avoid mutually assured destruction. These potentially exclusive games are the equivalent of nukes sitting in silos. Nobody will ever fire these “nukes,” but they act as a deterrent to a universe of exclusives. I have a funny feeling Sony doesn’t stop here. Maybe, Bungie was the first of many acquisitions. You build a small nuke first before building out the rest of your arsenal.

You have to think that EA is next on the list. It feels inevitable that somebody buys EA at this point.

(All information was provided by, IGN, and Wikipedia)

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