The Japanese conglomerate Sony saw its stock rally over 10 percent in Friday morning trading as a $1 billion buyback was announced along with a partnership with a major gaming competitor. The equity rally today took the stock to December 2018 levels are robust purchases from European and US investors. The buybacks will total about 4.8% of the total number of shares issued, which is worth 200 billion yen (approx. $1.82 billion, with the buyback period that will last from May 17, 2019 to March 31, 2020.
The partnership with Microsoft will change the gaming industry as the Azure cloud services are now part of the Sony plan. This partnership is an answer to the changing industry in which Google unveiled its own game streaming service called Stadia, in March. Keep in mind that the gaming space is expanding in Asia and is already larger than the movie industry – kids just love to play games.
The two companies also said that this partnership may result in the development of new computer chips but they did not give any specifics on how the new chips would be used. Sony and Microsoft, along with the Kyoto based firm, Nintendo, form a trio of firms that have dominated the video game console space.