Japanese technology giant Sony said it will buy video game developer Bungie in a deal worth $3.6 billion.
US-based Bungie, best known for the Destiny and Halo games, said it would help it to “reach billions of players”.
Halo is one of the games that contributed to the popularity of Microsoft’s Xbox.
Earlier this month, Microsoft revealed plans to buy video games giant Activision Blizzard for $68.7billion, which is the industry’s largest ever deal.
“This is an important step in our strategy to expand the reach of PlayStation to a much wider audience,” said Jim Ryan, president and chief executive of Sony Interactive Entertainment (SIE).
“We understand how vital Bungie’s community is to the studio and look forward to supporting them as they remain independent and continue to grow.”
Sony did not provide a timeline for when it expects the deal to be finalised.
Washington state based Bungie has more than 900 employees.
Under the deal, the firm will operate independently and continue to publish its own games after the takeover is completed. Bungie is working on expanding its Destiny 2 universe, the first-person shooter video game which was released in 2017.
“Both Bungie and SIE believe that game worlds are only the beginning of what our IP [intellectual property] will become,” said Bungie’s chief executive and chairman Pete Parsons.
“Our original universes have immense potential and, with SIE’s support, we will propel Bungie into becoming a global multi-media entertainment company dedicated to delivering on our creative vision,” he said.
