Sony Group (SONY) has reached an agreement to acquire a mobile game development studio, Savage Game Studios. The acquisition is in line with the company’s commitment to offer players with cutting-edge experiences. The deal also underscores the company’s drive to foster creativity in the gaming industry.
Savage is to join the newly created PlayStation Studios Mobile Division, which is an independent operation from console development.
Sony’s Mobile Gaming Ambitions
According to Sony’s Head of PlayStation Studios, Hermen Hulst, the focus is to continue expanding and diversifying offerings beyond consoles. Therefore, acquiring Savage is a step towards that goal. The acquisition should increase Sony’s footprint in mobile, aligning with the expansions into PC and live service games.
According to Reuters, Savage Game Studios should expand Sony’s footprint beyond console gaming. The company’s gaming Chief, Jim Ryan, has already outlined plans to broaden the games portfolio beyond the PlayStation 5 Console. The company is increasingly focusing on single-player games on PC and mobile devices.
Additionally, Sony hopes to tap into more consumer spending on gaming by expanding into other platforms. The company has been struggling to produce enough PlayStation 5 consoles amid supply chain issues. It has also been forced to hike prices in some markets due to a strengthening dollar.
Is Sony Stock a Buy?
According to TipRanks’ analyst rating consensus, Sony stock is a Moderate Buy based on one Buy and one Hold. The average Sony price target is $101.07. Analysts’ sentiments are bullish with over 24% upside potential to SONY current stock price.
Also, TipRanks’ Stock Investors tool shows that investor sentiment is currently positive on Sony’s stock. Over the past 30 days, 2.6% of the best-performing portfolios tracked by TipRanks increased their exposure to Sony stock.
Final Thoughts
Sony’s move to diversify its gaming portfolio with Savage Game Studios’ acquisition affirms its push for growth in the mobile gaming segment. The gaming business is expected to drive the company’s revenue higher going forward.
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