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Opinion

Sony's lack of ecosystem poses an existential threat

Sudden drop in stock price reflects market perception of business model vulnerability

| Japan
Sony saw, but misunderstood and misapplied, the ecosystem effect between devices and content.   © Anadolu Agency/Getty Images

Stephen Givens is a corporate lawyer based in Tokyo.

The 10% drop in Sony's stock price this week following Microsoft's announcement that it will buy game content developer Activision Blizzard shows the market has belatedly awakened to an existential flaw in Sony's kingdom. It lacks an ecosystem.

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