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Major video game publishers shielded by in-house studios during strike, analysts say
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Major video game publishers shielded by in-house studios during strike, analysts say
Jul 29, 2024 7:12 AM

July 29 (Reuters) - Major video game publishers

including Electronic Arts ( EA ) and Take-Two will likely stave off a

big hit from the strike by voice actors and motion-capture

artists due to their in-house studios and the lengthy

development cycles for games, analysts said.

The strike, which began last week, marked the latest in

Hollywood after unions representing writers and actors took to

the picket lines last year seeking protections against the use

of artificial intelligence.

It comes at a crucial time for the video game industry as

demand remains weak after a pandemic-driven boom, with people

spending fewer hours on games and sticking to big titles.

But unlike the disruptions caused by last year's strikes,

the latest action is expected to have little impact as the

workers make up a small portion of the video game development

process and budget.

"When you think about the larger publishers, they'll spend

anywhere from three to 10 years working on their larger titles.

If something is coming out over the next several quarters, it

will have been something that they begin production on several

years ago," Wedbush Securities analyst Nick McKay said.

That means that Take-Two Interactive Software's ( TTWO )

long-awaited title "Grand Theft Auto VI" - set to be launched in

the fall of 2025 - is unlikely to be affected by the strike that

workers represented by the SAG-AFTRA union called on Thursday.

The small budget required for voice acting also gives

companies little incentive to hold projects, and without a

unified body, once one developer agrees, others may follow,

analysts said.

Still, the strike will be a hot topic during earnings of the

companies set to be released in the coming weeks, said Joost Van

Dreunen, a lecturer at NYU's Stern School of Business.

The strike was a symptom of the widespread layoffs and

studios shutdowns that have hit the industry, he added.

"If it isn't resolved by early September, then I can see it

carrying into the rest of the year and the holiday season," said

Van Dreunen. "That will be much more dramatic for publishers."

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