The Federal Trade Commission (FTC) is apparently investigating Sony's proposed acquisition of Bungie, signaling a significant increase in federal oversight of gaming mergers at a time when the industry is consolidating.
According to Digital Trends, Sony announced its intention to buy the Destiny studio on Jan. 31, only two weeks after Microsoft disclosed its plans to buy Activision Blizzard for a whopping $70 billion, which the federal agency is also looking into.
I’m absolutely thrilled to welcome Bungie to the PlayStation family! Bungie create community-driven games with outstanding technology that are enormous fun to play, and I know that everyone at PlayStation Studios will be excited about what we can share and learn together. pic.twitter.com/VySocfBxtx
— Hermen Hulst (@hermenhulst) January 31, 2022
Sony Interactive Entertainment Plans To Acquire Bungie
Comic Book reported that Sony Interactive Entertainment has agreed to buy Bungie for $3.6 billion. Bungie will operate as an independent subsidiary of Sony Interactive Entertainment if and when the deal is completed.
The way the statement is worded also implies that Bungie will continue to publish its own games and be able to choose which platforms they will be released on, however, this does not necessarily imply that future Bungie titles would also be released elsewhere.
Bungie will be run by its Board of Directors when the deal closes, and Parsons will continue to serve as its chairman. The present management team will remain in place as well.
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In a separate Comic Book report, it was said that the deal was massive, as Bungie was once an Xbox-owned studio and is responsible for creating the platform holder's biggest franchise in Halo.
Bungie has been working on the Destiny series since splitting out from Microsoft and leaving Halo behind, and it has proven to be so successful that it has produced numerous more live service titles. As a result, PlayStation recognized the developer's worth and tried to acquire them.
The disclosure came as Microsoft revealed its acquisition of Activision, although Sony insisted that their agreement had been in the works for months.
Why Would the FTC Investigate PlayStation's $3.6 Billion Bungie Acquisition?
As per Digital Trends, citing The Information, sources familiar with the matter say the FTC's current investigation underscores the agency's aggressive approach to technology mergers, particularly those in the gaming industry.
The FTC's biggest issue with Sony's acquisition of Bungie is whether the company will make its games exclusive to the PlayStation platform when the deal closes, particularly on the forthcoming PS Plus subscription service. It wants to see if exclusivity would make it harder for rival companies like Microsoft and Nintendo to compete.
The report noted that Bungie will remain an independent and multiplatform gaming studio and publisher following the merger, according to Jim Ryan, President and CEO of Sony Interactive Entertainment. Bungie has implied that the merger is being done to broaden its entertainment options beyond gaming.
Meanwhile, the acquisition is currently slated to finalize in early 2023, Comic Book reported. So long as Sony keeps its pledge to keep Bungie's games multiplatform, it appears doubtful that the merger will be blocked outright. Sony is more likely to use Bungie to boost its free-to-play and first-person shooter offerings, as well as provide Bungie with the resources to expand its worlds outside of gaming by employing Sony Pictures for films or shows.
