INTERNATIONAL: Shares in Japan's Sony Group fell nine percent on Wednesday , 19 January after gaming rival Microsoft has announced it will buy developer Activision Blizzard in a record $68.7 billion deal for the industry.

Microsoft sets itself up as a one-stop tech shop with historic purchase of video game giant – it’s deal to buy Activision Blizzard — the maker of Candy Crush and Call of Duty — for $68.7 billion would be Microsoft’s largest acquisition.

Activision Blizzard has come under fire in recent months from public allegations of gender discrimination and sexual harassment, as well as worker strikes — all of which increase the risks for Microsoft’s biggest acquisition ever.

Buying Activision would add power to Microsoft’s already heavy-hitting game business, which includes gaming unit Xbox and popular kid’s game Minecraft, and position Microsoft well to compete in the emerging “metaverse” business prioritized by tech companies

Microsoft has built itself into a tech conglomerate in recent years through big deals such as career networking site LinkedIn and coding site GitHub, as well as its homegrown cloud-computing powerhouse Azure — part of a growing trend among tech giants toward operating sprawling empires.

And Sony slides on this “monumental challenge” from Microsoft gaming deal.

While Sony's PlayStation is widely seen as having a lead in the generational battle with Microsoft's Xbox, the purchase of the "Call of Duty" maker comes as Microsoft is aggressively expanding its Game Pass subscription service.

PlayStation is a major source of revenue for Activision, complicating any potential decision by Microsoft to remove titles from Sony systems and squeeze its rival.

Sony has strengthened its network of in-house games studios in the recent year and has delivered a string of exclusive hits, with Microsoft left playing catch-up.

The companies don’t expect the deal to close until 2023. Microsoft has largely escaped the trustbusting scrutiny that its fellow tech giants have endured recently, in part by carefully applying lessons it learned in its huge antitrust battle with regulators two decades ago.

^{PHOTO: EXTERIORS OF SONY HEADQUARTERS BUILDING / SONY LOGO / FILE FOOTAGE OF PLAYSTATION 5 AND GAMES}