Moments after the news of Xbox buying Activision Blizzard broke, Sony’s shares have taken a dip.

Sony’s shares fell by over 7% following the news, wiping US$20 billion off Sony’s market value within the day. This marks the company’s lowest close since late October 2021.

The recent Xbox acquisition was worth US$68.7 billion, and the company still plans to keep making “some” Activision Blizzard titles available for PlayStation consoles. DFC Intelligence has stated that in the long-term, this buyout shows that Microsoft is operating on an entirely different level than Sony and Nintendo.

“Sony and Nintendo have huge presence in the existing game business, but those two smaller Japanese companies struggle to play in the higher strategic space the industry is heading. This is more about Microsoft competing with Google, Amazon, Apple, Facebook and others. This acquisition would immediately put Microsoft in a solid strategic position.”

However, things may look up for the PlayStation brand. Xbox head Phil Spencer said that Xbox will be honouring all existing agreements upon the acquisition and will keep the Call of Duty franchise on PlayStation.

Had good calls this week with leaders at Sony. I confirmed our intent to honor all existing agreements upon acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry, and we value our relationship.

— Phil Spencer (@XboxP3) January 20, 2022

For more on 2022’s biggest acquisition since the Xbox-Bethesda one, head here.