Bungie Inc, the original inventor of the "Halo" videogame and developer of "Destiny," will be acquired by Sony Interactive Entertainment (6758.T) in a $3.6 billion transaction, marking the latest in a wave of consolidations sweeping the gaming industry.

Bungie will join Sony's PlayStation family, according to a blog post from the firm, as the Japanese corporation beefs up its network of in-house gaming studios behind bestsellers like "Spider-Man" to compete against cash-rich competitors.

Microsoft Corp (MSFT.O), whose Xbox systems have long been behind Sony's PlayStation in sales, offered $69 billion for Activision Blizzard (ATVI.O), the producer of "Call of Duty."

"While this is one of Sony's biggest-ever acquisitions, the amount paid by Microsoft puts into context the heavy competition faced in this sector," said Piers Harding-Rolls, gaming analyst at Ampere Analysis.

The company is situated in Bellevue, Washington. When Bungie was controlled by Microsoft before turning private in 2007, it worked on the "Halo" videogame franchise. "Marathon" and "Myth" are two more titles on which it has worked.

Bungie currently intends to add more talent throughout the firm for "Destiny 2," a previously published videogame by Activision Blizzard.

The video game industry is consolidating quickly in response to the pandemic's increase in demand, with fresh deals blurring the boundary between PC and mobile gaming companies in search of new revenue sources.

According to investment banking company Drake Star Partners, the industry is on track to set a new high of $150 billion in transactions, funding, and IPOs this year.

Take-Two (TTWO.O), the producer of "Grand Theft Auto," bid $11 billion for Zynga, the maker of "FarmVille," in just the first month of the year.

Instead of collaborating with studios, big-name firms have been attempting to bring the talent and intellectual property behind famous games in-house, providing them more access to a burgeoning, high-value industry.

Sony has recruited several developers to its roster, including Valkyrie Entertainment, a videogame production firm, and Housemarque, the creator of "Returnal."

"This (Bungie deal) is an important step in our strategy to expand the reach of PlayStation to a much wider audience," said Jim Ryan, head of the Sony Corp unit responsible for PlayStation.

Bungie will be an independent unit of Sony Interactive Entertainment, run by its board chaired by CEO Pete Parsons.