Microsoft Corp. threw down the gauntlet last week with its biggest-ever acquisition, agreeing to purchase Activision Blizzard Inc. for a whopping $68.7 billion (¥7.8 trillion) in a deal that could preclude major shakeups in the lucrative video game industry. But where that leaves Japan’s top gaming firms, from Sony to top third-party developers like Capcom and Square Enix, remains to be seen.

As hype over the so-called metaverse reaches a fever pitch, a slew of video game developers will likely seek partners to team up with or get absorbed by global tech titans to get ahead of the competition.

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