What you need to know about Sony’s purchase of Bungie, the game developer behind “Halo” and “Destiny”

The backstory:

• Microsoft Corporation announced that it would buy Activision Blizzard, Inc. earlier this month for US$95 a share in good ol’ cash, putting the sale at a cool US$68.7 billion.

• This sale should help Microsoft’s Xbox obtain more intellectual property assets for its Xbox Game Pass Service and compete with rival Sony Group Corporation’s PlayStation.

• Both companies compete to attract paying customers with a good-looking portfolio of exclusive games. This sale is a direct challenge to Sony’s sales because its game and network services make up around 30% of its revenue.

• Investors scared that Sony won’t be able to compete with the tech giant led to Sony’s shares falling 13% after the announcement.

The development:

• As the video game industry competition heats up, in a move to intensify the battle and acquire smaller players and further consolidate the industry, Sony has acquired privately-held video game developer Bungie, Inc. for US$3.6 billion.

• Bungie is the company behind some of the most well-known shooter games like “Destiny” and “Halo.” And Bungie has been passed around a little; the company was acquired by Microsoft in 2000 but split from Microsoft in 2007.

• “Bungie has created and continues to evolve some of the world’s most beloved videogame franchises and, by aligning its values with people’s desire to share gameplay experiences, they bring together millions of people around the world,” said Kenichiro Yoshida, Chairman, President and Chief Executive Officer of Sony, in a statement.

• Sony shares were up about 4.5% for the day.

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