After Microsoft announced its plans to buy Activision Blizzard, Sony’s shares fell off in Tokyo trade.

The deal will be an important step for Microsoft’s Xbox gaming brand in its battle against Sony’s PlayStation. The purchase of the “Call of Duty” maker comes as Microsoft is fiercely trying to expand its Game Pass subscription service. Microsoft’s chief executive Satya Nadella, said:

“We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

However, Sony’s PlayStation 5 is being recognized as the leader over Microsoft’s Xbox models. In the past few years, Sony made its network stronger and offered some exclusive hits such as its Spider-man franchise.

Also, the Japanese company is one of the very first companies in virtual reality. Not only that but this month Sony even revealed some more details about its next generation headset.

Now, Sony meets really strong competition in the gaming industry.