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Sony Group to Invest $2.17 Billion in Gaming R&D to Compete with Microsoft

Updated: Jan 2

[Edited] Sony Group is set to boost its research and development (R&D) spending at its gaming unit by approximately 10%, reaching 300 billion yen ($2.2 billion) in the current financial year, according to a report by Nikkei.

Credits: REUTERS

The report states that R&D spending for the gaming business, which includes the highly successful PlayStation 5 console, will surpass spending on electronics and semiconductors this year.

While Sony has not yet responded to requests for comment, its gaming business has outlined ambitious plans to invest in live-service games, which offer continuous updates, as well as expanding its offerings in PC and mobile gaming.

Following the news, Sony's stock rose by 4% during Tokyo morning trade, likely due to a brokerage upgrade.

In the gaming industry, Microsoft has turned to acquisitions to enhance its subscription and cloud-based gaming services in order to better compete with Sony, the market leader.

In related news, the U.S. Federal Trade Commission announced on Wednesday that it would appeal a federal judge's ruling allowing Microsoft to proceed with its $69 billion acquisition of Activision Blizzard, the maker of popular game "Call of Duty."

As of the current exchange rate, $1 is equivalent to 138.3900 yen.

  • Sony Group plans to increase R&D spending at its gaming unit by 10% to 300 billion yen.

  • R&D spending for the gaming business will surpass spending on electronics and semiconductors.

  • Sony's gaming business aims to invest in live-service games and expand into PC and mobile gaming.


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