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."