Sony Interactive Entertainment has agreed to acquire privately-held video game developer Bungie for $3.6 billion, adding to a flurry of video game consolidation this month.
Bungie is the firm behind the multiplayer shooter games Destiny and Halo, the latter of which it developed until 2010. Bungie was acquired by Microsoft in 2000 and split from Microsoft in 2007.
While smaller than both Take-Two Interactive’s $12.7 billion deal for Zynga and Microsoft’s $69 billion acquisition of Activision Blizzard this month, Sony is acquiring the company that, with Halo, helped launch Microsoft’s first Xbox in 2001. All three deals were announced this month. Technology companies are increasingly interested in gaming as they look to expand audiences and prepare for future iterations of virtual and augmented reality devices.
Sony shares were up about 4.3% for the day as of 1:30 p.m. ET.
Bungie will continue to operate independently within Sony, according to a statement. The video game developer’s most recent hit is Destiny 2, which will continue to be offered on multiple platforms. The Halo franchise has been developed by Microsoft‘s 343 Industries since 2011. Its latest game, Halo Infinite, launched on Xbox and Windows in 2021.
“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 CEO, Sony Group Corporation, in a statement.
Sony Interactive Entertainment, which develops PlayStation and is based in San Mateo, California, is a subsidiary of Sony Group Corporation.