Sony Loses Value Due to Weak Bungie Performance
Sony revealed a $765 million loss directly tied to Bungie and Marathon's performance, part of a larger value decline following the $3.6 billion acquisition four years ago.
Four years ago, Sony announced the massive acquisition of Bungie for $3.6 billion. The announcement wasn't particularly surprising since Bungie and Sony had always been close to each other, and this move by Sony was aimed at strengthening its Live Service games sector (and we saw how that went with Concord), with Destiny 2 as the crown jewel. Bungie's next game was Marathon, which went through a long development including a delay for extensive improvements before finally launching a few months ago and was met with mixed reviews from both players and critics alike.
During Sony's recent investor call, the company revealed it is suffering a very large loss in value, at the center of which is a $765 million loss directly linked to Bungie and Marathon's performance. This disclosure presents a problematic situation for both companies after Bungie was the largest acquisition Sony ever made, with many hopes and revenue expectations riding on it. The situation is even more difficult when looking at Marathon's health, with low player numbers standing at only a few thousand in recent days, while Sony does not expect Bungie to be able to recover the losses with a low revenue forecast. It should be said honestly that Sony's major declines are not solely related to Bungie (although they are one of the main factors), as the investor call also noted a 24% drop in operating revenue and a decline in the number of PS5 units sold.