Sony slides on 'monumental challenge' from Microsoft gaming deal


FILE PHOTO: Sony Corp's logo is seen at its news conference in Tokyo, Japan November 1, 2017. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Shares in Japan's Sony Group fell 9% on Wednesday after gaming rival Microsoft said it will buy developer Activision Blizzard in a record $68.7 billion deal for the industry.

While Sony's PlayStation is widely seen as having a lead in the generational battle with Microsoft's Xbox, the purchase of the "Call of Duty" maker comes as Microsoft is aggressively expanding its Game Pass subscription service.

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