Sony’s plans to be a major player in the content market spanning gaming and movies has been hit with billions being wiped off the value of the Sony Group.

The blockbuster acquisition of Activision for over A$95 billion by Microsoft wiped A$27 billion off the value of Sony as with the spending spree to secure intellectual property assets for its Xbox Game Pass service seen as a major threat to Sony.

Sony’s stock price closed down 12.8% at its lowest level in over three months.

Investors fear that intensifying competition in the gaming market could hamper the Japanese conglomerate’s future earnings in the gaming business with their PlayStation franchise which is tipped to be challenged seen as a significant contributor to Sony Group revenues.

Sony and Microsoft are major players in the gaming industry. Both launched their latest consoles in Nov. 2020.

As of Sept., Sony has sold over 13 million PlayStation 5 consoles.

Microsoft does not release console sales numbers, but analysts and independent data have suggested the PS5 has been outselling the Xbox Series X.

Microsoft’s acquisition of Activision is seen as a way to beef up its offerings of strong titles and attract consumers to its console, pulling them into Microsoft’s overall gaming ecosystem.

Sony who last year acquired several studios, including the U.S.’s Bluepoint Games, Finland’s Housemarque and U.K.-based Firesprite has not commented on the sharp fall in their stock or on the acquisition.